Investor's Corner - What does due diligence mean and what is the best way of doing it?

Wednesday Jan 19th, 2022

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Financial Statement Calculation

So you are considering buying real estate and are just unsure about all those nitty-gritty details that you want to double and triple check to make sure it's to your liking?  Guess what? So does everyone else! The good news is that you must not necessarily verify everything before your place an offer on a property. Imagine having to go through financial statements for the last 12-36 months, checking each and every entry, reading every single lease agreement, creating estimates... [read more]

Investor's Corner - What is capitalization (cap) rate in a commercial property?

Thursday Jan 6th, 2022

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Muti Family Commercial Apartment

For an investor, or anyone that is considering purchasing commercial real estate, the most common question that needs to be answered is this; WHAT IS THE CAP RATE? What does that even mean? Simply put, capitalization is the process of converting the income of a given property into a capital value. A capitalization (cap) rate has more than one rate embodied in it (i.e. the discount rate and the recapture rate). There are two different types of capitalization in the CRE market; direct... [read more]

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