4 Ways to Diversify A Commercial Real Estate Investment Portfolio

In any sort of investment, diversification is a bedrock risk management principle. The idea behind it is to spread investment capital over a variety of uncorrelated asset classes to mitigate the impact of declines in any one of them. For example, the prices of stocks and bonds tend to move in opposite directions so it […]

Title Insurance For Commercial Real Estate: Ultimate Guide

A typical commercial investment property may be 20+ years old. In many cases, this means that it has had several owners and it may have been subject to zoning changes, different mortgages, and multiple renovations. Given all of this activity, it can occasionally be a challenge to determine who actually holds title to a property. […]

Understanding Replacement Cost and Replacement Risk in Commercial Real Estate

When evaluating a commercial real estate asset for a potential purpose, it is common for investors to spend a significant amount of time researching the property’s location and market. In an ideal market, there is a steady influx of new residents and businesses, along with the construction of new real estate to support their needs. […]

What is Defeasance In Private Real Estate Investment?

Defeasance in Commercial Real Estate Investments, Cityscape with Large Shopping Center

Nearly all commercial real estate transactions are financed with some combination of equity and debt. Equity is money that is raised from investors, and debt is a loan that is made by a bank or real estate lender. In return for their loan, the debt holder typically has a first claim on any cash produced […]