Equity Multiple in Commercial Real Estate Explained
One of the tricky parts about measuring the potential profitability in a commercial real estate investment is that there are several ways to do it, and each metric has its own quirks, benefits, and drawbacks. For this reason, investors rarely look at one metric alone, instead choosing to look at a suite of them to […]
Commercial Real Estate Primer for Investors
The term “commercial real estate” (CRE) describes a broad class of real estate assets that are acquired with the intent to earn a profit through rental income, price appreciation, or both. As an asset class, commercial real estate has a strong track record of delivering respectable returns over time, which makes it an attractive investment […]
Understanding the Internal Rate of Return
Fundamentally, the idea of making a commercial real estate investment is a simple one. An individual contributes a certain amount of capital towards the initial cost of an investment property. In doing so, they expect that they will receive their initial investment back, plus a return over time. Prior to making an investment decision or […]
Understanding the Equity Multiple
Prior to deploying funds into a commercial real estate investment opportunity, it is absolutely critical to perform a significant amount of due diligence on the target property. This due diligence includes a review of the physical aspects of the property like its condition, location, and a review of the financial aspects of the property like […]
