David Luke

For investors considering the purchase of real estate, the goal is to keep costs as low as possible. A component of that is obtaining a low-interest rate, but it may also be important to minimize cash flow loss. An interest-only loan may offer some assistance in that area.

What is an Interest-Only Loan?

In its simplest terms, An interest-only commercial mortgage is a loan in … Read More

Any investment in commercial property is a significant one, and even the most well-managed properties suffer damage. Commercial insurance is a necessary investment, yet many investors don’t know much about their coverage nor how to take full advantage of the protections it provides.

What is Commercial Property Insurance?

Commercial property insurance is much like any other form of insurance. It is a policy taken out … Read More

Real estate investments require evaluation from multiple angles and using multiple metrics. One metric that’s gained increased popularity in recent years is unlevered free cash flow (UFCF). This calculation provides a unique perspective on an investment’s financial performance, focusing on how much cash flow a property generates.

What is an Unlevered Free Cash Flow in Real Estate?

Unlevered free cash flow calculates the cash flow … Read More

CAM charges are a common term seen on many commercial leases and in various transactions. It refers to the expenses the property owner charges back to the tenant for maintaining the specific area described. There are many factors to consider related to CAM, and understanding how this relates to any contract or lease agreement is critical prior to entering into such an agreement. Consider what … Read More

Commercial real estate investors have access to many different financing programs when they first purchase a property, but sometimes capital’s needed after a property is already owned. A commercial equity line of credit (CELOC) allows investors to use their equity as a means of attaining as-needed financing.

Understanding Commercial Equity Line of Credit (CELOC)

A commercial equity line of credit is a financing option that … Read More

The landlord-tenant relationship may be arranged in several different ways in commercial leases. Tenancy at will is one of the most flexible arrangements, but flexibility has both its advantages and disadvantages. Here’s a look at what tenancy at will offer both landlords and tenants.

What is Tenancy at Will?

A tenancy at will is a rental agreement in which either the landlord or the tenant … Read More

All parties involved in commercial real estate transactions and investments should consult a commercial real estate attorney at times. Here’s a look at what these lawyers do, why investors need them, and how to choose one that’s best qualified to serve you.

What a Commercial Real Estate Lawyer Does

Commercial real estate lawyers specialize in the legal aspects of buying, selling, leasing, and managing commercial … Read More

Real estate investors commonly need to rely on a commercial lease to create a legally binding contract with their clients. Understanding the types of leases available is a big part of ensuring the best long-term results.

Understanding Commercial Leases

A commercial lease may not seem like a complicated process and may seem to be much like a traditional residential lease. However, there are differences that … Read More

The decision to invest in real estate does not always come from purchasing pre-existing property. With a better understanding of multifamily apartment costs, some investors may hope to build from the ground up.

Stages of Apartment Complex Construction

Building an apartment complex requires numerous steps. The process typically involves three phases.

Pre-Construction

The pre-construction process is the planning and development phase. The focus here is … Read More

The size of a commercial investment property is one of the most important factors when projecting the property’s potential revenues. This is perhaps the most important factor aside from location and type of property, for size directly impacts the potential rents that a property can generate.

Specifically, investors should consider the gross leasable area (GLA) of a property when projecting rents and revenues. GLA best … Read More