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Real Estate Articles in the Investment Category

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Triple Net Lease Tenants

Identifying Triple Net Lease Tenant Profiles
by: Robert Stec
Investors who wish to engage in the purchase of commercial real estate, particularly retail triple net lease investment properties, must understand what types of tenants this property profile might best attract.  In addition, understanding the categories of tenants and how those relate to developing an investment strategy will allow the investor to identify the best possible opportunities.
Most commercial and retail tenants can be classified based on the size of the enterprise and the number of locations the company has in the United States.  …

Investment, Triple Net »

Commercial vs Residential Real Estate Investment

by: Robert Stec
Many investors view today’s disadvantaged real estate market as a golden opportunity for investment.  The old adage of “buy low, sell high” is particularly relevant to real estate today and an almost limitless supply of product is available now.  Although experts do not all agree as to whether the market has begun to rebound in earnest, it is safe to assume that the low prices and extensive inventory of investment properties will not last forever.
This is an excellent time for investing in real estate.  However, for the inexperienced …

Investment, Triple Net »

Triple Net Lease Investment Property Exchange

In today’s fluctuating economy, investors are in search of ways to increase their return on investment (ROI) while lessening their income tax burden.  Commercial real estate represents one of the best investment opportunities today, particularly those properties with long-term triple net leases in place.  If the investor can purchase these properties using the 1031 tax-deferred exchange program, the investment potential becomes even more attractive.
The 1031 exchange program, provided for in the U.S. tax code, allows for the sale and purchase of like-kind properties with a deferral of capital gains and …

Investment »

Zoning Can Add Value to Real Estate Investment Property

Real Estate Investors & Developers often ask the question will re zoning my real estate investment add value. This question has been asked since the enabling statutes were first passed in the State. The answer to the real estate investors  question is not straightforward and is dependent upon a number of variables such as (a) the timing of the real estate market, (b) the true value of the land, (c) the population demographics in the immediate and surrounding areas, and (d) the job market.
 Other important considerations include what is represented in the …

Investment, Triple Net »

Triple Net Lease Single Tenant Cap Rates

In 2011 we are seeing the substantial cap rate compression from previous years in the past for core net leased assets. As 2010 ended the market saw multiple investors competing for core assets. The national asking cap rates in 2011 for the single tenant retail sector are currently 8.00%. The national asking cap rates the office sector are 8.10%.
Transaction level in 2011 is anticipated to decrease from 2010 levels which was very high and driven by low interest rates, greater financing availability and a very large supply of properties available for disposition as a …

Investment, Uncategorized »

2011 2012 Tax Cuts Help Real Estate Investment

Most of  the artciles on Buyers Utopia are sepcific to real estate and real estate investment but the recent tax cuts effects do effect the bottom of line of all real estate investors so we would like to discuss some of the spefics.  As you probably know Congress has passed and President Obama signed on December 16, 2010 the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. The legislation extends the Bush income tax cuts for 2011 and 2012 for all taxpayers. That means the 35% maximum …

Investment »

Non Traded Real Estate Investment Trusts

Non-traded Real Estate Investment Trusts are public companies, but their shares are not listed on any stock exchange. This makes non-traded REITs a very private market with less liquidity but also less volatility than there public counterparts.. When investigating non traded Real Estate Investment Trusts investors need to be careful that the non traded REIT are not paying dividends from borrowings and capital as opposed to funds from operations like they should be.
Non-traded public REITs are proving to be a popular new source of investment capital for the commercial real …

Investment, Triple Net »

Triple Net Lease Real Estate Investment

Many real estate investors are realizing Triple Net Lease Real Estate Investments offer a more consistent return and a truly turn key investment property opportunity.  Investors have to ask themselves why invest in a vacation home or residential investment with potential low returns and high maintenance?
Triple Net Lease Real Estate Investment can be anything from a Walgreens Pharmacy to a Starbucks Coffee Shop to a Dollar General Store or even a large a Best Buy Retail site.  Net Leased real estate investment opportunities are usually standing buildings that are leased …

Investment »

Leverage Real Estate

By:  Skyler Moore

“He who holds the gold, makes the rules.”  Investors who have cash in today’s distressed real estate market have several avenues to make money, even in today’s real estate market.  Investors may choose to purchased distressed residential or commercial assets, passively loan money privately, place options on deals and more.  Using cash is the best way to obtain a deal, but once an investor controls a deal, should they leave all their cash in?
A common thread I see with cash investors is leaving all their money into the …

Investment »

Private Money Investment

Private Money Investment via private lenders and hard money lenders have fueled our economy while conventional banks still continue to stay on the sidelines for investment property loans.  What has become evident is that there is so much demand in the market for private money that it’ a great window of opportunity for investors to participate and earn high returns as private money lenders.
Investors must be smart in their anaylsis of deals however, for many investors and borrowers the old adage “that real estate values always go up”  is clearly not …