BUSINESS

When investing in real estate, a property’s net operating income receives ample attention. The NOI calculation tells the investor how profitable an investment is. This calculation serves other purposes as well. For example, it is a fundamental component in other critical ratios, such as the return on investment, the cap rate and the debt coverage […]

One of the many benefits of investing in real estate is the ability to leverage your investment. Leverage supports diversifying your portfolio, building wealth and optimizing your return on investment. However, when not used strategically and cautiously, it exposes real estate investors to greater risk. What Is Leverage in Real Estate? In real estate, a

Analyzing your expected rate of return on a real estate investment and comparing the return to other potential investments are essential aspects of making a savvy investment. A detailed ROI analysis, however, requires scrutiny of the numbers and takes time. The cap rate equation is often used by investors as a quick, back-of-the-envelope method to

What Is an STR in Real Estate? STR, also known as short term rental, is a rental property that is offered for a term of 30 days or less. With home-sharing and vacation rental platforms increasingly popular, the short term rental markets have seen a boom over the last decade. More STRs are available to

Investing in multifamily properties is an excellent way to diversify your investment portfolio. These investments provide more passive income and reduce your vacancy rates. When you invest in a single-family home, your vacancy rate will be 100% when a tenant moves out. By contrast, multi-family properties have multiple units. This means that even if one

Both residential and commercial real estate rentals are in demand. You could hunt for a quality, cash-producing investment that suits your specifications to profit from this market demand. However, building an investment property from the ground up yields notable benefits. For example, new-construction properties typically have fewer repair and maintenance needs than older buildings. This

Whether you are building a house from the ground up, are expanding an existing multifamily building horizontally or have other construction loan needs, it is imperative to understand your financing options. A construction loan specifically provides funding for a project until the construction is complete, and it is not a permanent loan. There are several

While traditional loans are suitable for some types of investment properties, alternative financing options are necessary for others. Hard money loans stand apart with their flexibility, requirements, loan terms and interest rates. Given their notable benefits in many situations, you need more details about hard money rates and other key aspects of hard money loans

In the current real estate market, there are incredible opportunities for investors to profit, including from long-term holds and fix-and-flip projects. Often, investors must act quickly to secure a lucrative opportunity. A traditional mortgage often takes a month or more to close, and the deal could be snatched up by another investor before traditional financing

If you’re starting to invest in real estate or working as a developer you know how important it is to have the right financing and funding to keep everything moving forward. One of the ways to do that is through bridge financing, which is a type of loan that bridges the gap between a property