Investor Learning Center

Message From Harbor City’s Broker-In-Charge

If you are currently thinking about placing (or reinvesting) money in the real estate market, I encourage you to review the Investor Learn Center Topics outlined below.

Should you have other questions about investing, please don’t hesitate to call me.   There is no such thing as a dumb question, especially in the confusing world of investment real estate.

Chris Cunniffe, Broker-in-Charge

 


Follow the links for more information.

MEASURING AND COMPARING INVESTMENTS

1. Why Do Investors Often Talk About “Cap Rates”?  What Does a Cap Rate Measure?  How Is It Calculated?

2. Can a “Cap Rate” Ever Be a Misleading Measure?  When Should I Be Careful When Using a “Cap Rate” to Influence an Investment Decision?

3. Are There Any Alternative Measures That I Can Use If I’m Not Satisfied With the Accuracy of a “Cap Rate” for Analyzing a Particular Investment?

REAL ESTATE FINANCE

1. What Is “Leverage”?  Why Is It Considered a Benefit of Real Estate Investing?    What Are the Downsides to Leveraging a Real Estate Investment?

2. What Issues Should I Focus On When I Negotiate a Commercial Real Estate Loan?

3. What Is Meant by the Phrases “Loan To Value Ratio” and “Debt Coverage Ratio”?  How Does a Lender Use These Ratios to Analyze a Potential Loan?

4. Aside From Financial Ratios, What Are the Other Important Considerations for Lenders in Evaluating a Commercial Real Estate Loan?

5. What Are the Primary Methods Used by Professional Appraisers in Appraising the Value of Commercial Real Estate?

6. What Is a “Non-Recourse” Loan?  Under What Circumstances Will a Lender Consider Making a Non-Recourse Loan?

PURCHASE AND SALE ISSUES

1.  Aside From the Purchase Price, What Are the Most Commonly Negotiated Issues in a Commercial Purchase Contract?

2. What Is Meant by the Phrase “Due Diligence”?  What Are the Key Elements of an Investor’s Due Diligence Investigations of a Potential Investment?

LEASE LINGO AND LEASE NEGOTIATION ISSUES

1. What Are “Triple Net” Leases and Why Are They Popular With Investors?

2. What Is a “Full Service Lease”?

3. Are There Any Situations Where The Lease Is a Hybrid Between a Triple Net Lease and a Full Service Lease?

4. If a Purchase Price or a Lease Rate Is Measured “Per Square Foot”, Is There Universal Agreement as to the Standard for Measuring Square Feet?

 5. What Is the Difference Between “Usable Square Feet” and “Rentable Square Feet”?

6. What Are the Most Commonly Negotiated Issues in a Commercial Lease?

REAL ESTATE TAX ISSUES

1. Why Are Some Real Estate Investments Referred to as “Tax Shelters”?

2. Are There Other Tax Advantages to Real Estate Investments Besides Depreciation Deduction

We hope you have found this Learning Center to be helpful.  Should you have further questions, don’t hesitate to call Harbor City for help.