The cash-on-cash return is often considered one of the essential calculations in real estate investing. It determines the income earned on the cash investment made on a property. In simplest terms, this metric shows the annual return made by the investor on the...
It’s important to understand the meaning of capitalization rate (otherwise known as cap rate) if you’re interested in investing in commercial properties. The cap rate formula helps both buyers and sellers determine the value of a property. Let’s talk...
Understanding what after repair value (ARV) is and how to compute for this number is essential if you’re interested in investing in commercial properties, especially if you want to flip them. In this blog, we will discuss all the basics you need to know about...
Adjustable-rate commercial mortgages (also called floating rate mortgages) are the same as residential adjustable-rate mortgages in the sense that the interest rate is adjusted periodically based on a set index. The rates can go up or down over the life of the loan,...
Subject-to clauses are used to note different conditions in a real estate contract. It can pertain to many different things. For example, the sale of a commercial real estate building can be deemed ‘subject to the sale of another property. If the other property...
Are you wondering what cost segregation is and how it can help you lower your taxes? In this blog, we define this strategy and talk about how it can be applied, who can benefit from a cost segregation study, and how the latest tax reforms make it an even more powerful...
