Who Made Who, Who Made You?

Key Takeaways:  Real Estate Development projects are often done as Joint Venture Partnerships between an equity provider (or fund) and a development company (or individual sponsor/developer).  Time value of money and intersection of risk/reward drive choices to invest...

Why should I lend you money?

Key Takeaways:  The intersection of risk and reward drive individual investment decisions  CRE lender can participate in real estate investment with minimal risk compared to the equity owner on title  Lender often has personal recourse on borrower as well as right to...

“Negative Leverage, wait, isn’t that an oxymoron?”

Key Takeaways:  Negative leverage is present when the Unleveraged IRR is less than the cost of borrowing (debt service) The presence of Negative Leverage is a warning sign (red flag) of potential cash flow difficulty  Positive Leverage should be targeted as soon as...

Common Mistakes Buyers Make in a Seller’s Market

It is common to find many buyers making one or several mistakes when looking for a house in a seller’s market. Why? Simply because they don’t understand how the technicalities of a seller’s market work. If you are looking for a house in the Boise, Idaho area, learn...

Investing in Commercial Property: What You Need to Know

Ask any real estate professional and you will find that investing in commercial property is much better than investing in residential real estate. With commercial property, you stand to gain additional cash flow, enjoy economies of scale, and generally get a higher...