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ROI Check-Up 

Many investors ignore the return on investment that property condition assessments often can deliver. PCAs yield an ROI in three ways protecting buyers from bad purchases providing buyers with information for price negotiations with sellers and finding opportunities to improve

Where's the Money? 

Asked where real estate investors are putting their money (if unable or unwilling to invest in real estate), Integra analysts ranked the capital vehicles in most to least preferred order. From the looks of REIT prices in April 2009, the

TICs Today 

Several years ago, tenancy in common 1031 real estate exchanges were on a steady upward trajectory that seemed destined to continue indefinitely. Within the past year, however, the growth curve has flattened, with the securitized TIC market taking the majority

Exchange Your Strategy 

An increasing number of today’s commercial real estate investors are knowledgeable about the benefits of exchanging qualified investment real estate under Internal Revenue Code Section 1031. However, they might not realize that 1031 exchanges aren’t ideal for every investor or

Navigating the Maze 

The labyrinth of rules that taxpayers must follow when completing Internal Revenue Code Section 1031 exchanges can be overwhelming. Commercial real estate developers often prefer to avoid this maze, thinking that most of their work involves non qualified inventory. However,

Money Magnets 

Capital that is now on the sidelines is likely to return to the market as a floor on asset pricing emerges and values become attractive once again. However, while lending conditions are expected to remain tight during the next 12

QI Questions 

The unregulated Section 1031 exchange industry has suffered instances of misappropriated client funds, breaches of fiduciary duty, theft, and qualified intermediary bankruptcy filings. The task of qualifying a QI has become paramount for real estate investors and their advisers. Understanding

Physical Fitness 

Commercial real estate investors conduct many types of due diligence, such as financial, legal, and physical. Regarding the latter, many investors assume that if they follow the current physical due diligence standard, ASTM guideline E2018 08, Standard Guide for Property

Ready for Reform? 

On July 21, 2010, the Dodd Frank Wall Street Reform and Consumer Protection Act was signed into law. The risk retention requirements under Dodd Frank for asset backed securitizations, including commercial mortgage backed securities, have garnered substantial attention from the

Restaurant Re-use 

Most owners of retail properties have restaurant tenants. Whether they are located on an end cap, inline, or on a free standing outparcel, these restaurants make up an integral component of the retail investment landscape. Savvy property owners recognize that

Engineering Value 

It seems like only yesterday that real estate investors and developers breezily talked about easy exit strategies and double digit internal rates of return. When lenders and investors were eager, winning at real estate was more about managing the capital

Foreclosure Fortunes 

In today&rsquo s market, the difference between traditional and distressed sales is mostly in the buyer&rsquo s mindset. Traditional sales currently are driven by need &mdash only investors who need to fulfill Section 1031 exchanges or other financial or market

Due Diligence: Digging Deeper 

Lenders have overhauled their lending criteria and underwriting guidelines, so why shouldn’t buyers do the same? During these challenging times, property investors must refocus on the fundamental aspects of investment analysis to properly substantiate value in the purchase price. When

Cap Rate Calculations 

A capitalization rate is the overall or non financed return on a real estate investment, akin to the return on total assets in accounting terms. A cap rate is calculated as a mathematical relationship between net operating income and an

Investor Insights 

When it comes to investing in today&rsquo s commercial real estate market, industry pro and author Kenneth D. Rosen, CCIM, founder and president of Kendar Realty in Coral Gables, Fla., has some simple advice &ldquo Stick with what you know.&rdquo

Lease Resistance 

As if rental demand weren’t already an issue, new accounting standards could make purchasing space more attractive than leasing. The changes will effectively eliminate most of the accounting differences between owning and renting a building. And in a market that

Buyers Are Back 

Commercial real estate investors are lumbering out of the woods and back into the game. The menagerie of buyers shopping for properties in today’s market runs the gamut from private individuals to billion dollar institutions. But one thing they all

Alternative Risk Retention for Commercial Real Estate 

In response to input from the commercial real estate industry, the Dodd Frank Wall Street Reform and Consumer Protection Act expressly contemplates flexibility and custom tailoring for commercial mortgage backed securities risk retention requirements. The contemplated regulations shall specify the

The Benefits of Cost-Segregation Studies 

When a commercial property is purchased or constructed, a building asset is created and the dollars are entered into a fixed asset system as 39 or 27.5 year property. Using the straight line method,

The Big Picture 

Companies that are real estate users can learn from today’s tough economy and past real estate strategies. Reflecting on best practices can provide insights to defend against future downturns. Real estate decisions, by their very nature, should include long term

Cost Comparison: A Case Study 

When looking to extinguish fixed rate debt, borrowers have two alternatives yield maintenance or defeasance. Both methods allow the borrower to unencumber the underlying real estate asset, and both compensate for the lender’s reinvestment risk following prepayment. However, each method

Cashing Out 

Over the years, many real estate investors have had the good fortune of large appreciation in the real estate market. At the same time, many of those investors now are worried about potentially losing a significant amount of their appreciation

Just Due It 

The current economy and the lack of available credit have created a new paradigm for commercial real estate investors. Many lenders are indicating that, in the future, an appraisal won’t be enough to obtain financing Market feasibility studies will be

Hands-Free Investments 

Non direct real estate investment choices run the gamut from tenancy in common interests and real estate investment trusts to net lease properties and mutual funds. Such investments provide many of the same perks as traditional real estate ownership, such

Premium Advice 

Every multifamily property owner understands that many factors affect a property&rsquo s ability to turn a profit. They also understand that the real estate business is driven by net operating income. But not all owners may realize that a variety