Eric Little

Tenancy in common (TIC) is a real estate transaction in which there are more than one owner of a specific property. It is not an uncommon situation, but it is one that can have both good and bad factors related to it. Understanding tenancy in common in a commercial real estate transaction is a critical step if this type of structure will be used.

What … Read More

Determining which rental property is worth your investment requires taking a careful look at various bits of data. Gross rent multiplier in real estate happens to be one of the most important factors you may wish to focus on – and the good news is there are many such metrics you can use to get a good idea of the value of any property.

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Equity multiple represents the absolute return of an investment. It’s widely used in private equity and commercial real estate as a litmus test. There are fewer quick ways to calculate the potential or actual total return of a property (or deal).

What Does Equity Multiple Mean?

Equity multiple demonstrates, in a straightforward way, the total return that investors will receive on their total investment. It’s … Read More

Triple net properties, sometimes called NNN, are a form of commercial real estate. Those considering the investment in these properties should understand what this term means and how it applies to their situation.

What Does Triple Net Mean in Commercial Real Estate?

A triple net lease is a type of commercial lease that includes a provision that the lease remains responsible for covering some of … Read More

A variety of commercial leases are available. This helps ensure there is something available to fit any need and most challenges.

There are two main types of commercial leases. The first is a gross lease, and the second is a net lease. It is also sometimes called gross rent vs net rent. The type determines who pays for various expenses associated with the use of … Read More

Understanding loan to cost meaning is quite important to investors. This ratio is a valuable metric used in commercial real estate construction (and other areas) to determine whether a transaction may be profitable or beneficial to that investor. It compares the cost of financing a project (usually as a loan) to the cost of building the project. By utilizing this metric, lenders can better determine … Read More

The debt service coverage ratio (DSCR) offers a key but often misunderstood tool for all commercial real estate financing parties. For instance, investors may use this formula to adjust offers, track performance, calculate profit margins, and determine when they should obtain financing or seek to refinance. In contrast, lenders employ the figure during underwriting to decide if the property earns enough income to justify the risk.

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Real estate investors need information. The more information they have, the better the decisions they can make. There are a lot of tools to provide this information, but one of the most important is net operating income (NOI).  Understanding what this calculation is and how to use it can help investors make decisions quickly regarding any property an investor is considering.

What Is Net Operating … Read More