The real estate market is often divided into tiers, with tier 1 being the most desirable and expensive properties, and tier 4 being the least desirable and affordable properties. The number of tiers can vary depending on who you ask, but most experts agree that there are four distinct tiers in the real estate market. … Read more
The term “Cash Available for Distribution” (CAD) is commonly used in the real estate industry to refer to the amount of cash that is available to be distributed to investors after all expenses have been paid. CAD is typically calculated by taking the total amount of cash generated by a property during a certain period … Read more
An 18-hour city is a metropolitan area that has a lively and vibrant nightlife and is bustling with activity even after the traditional work day ends. These areas are attractive to young professionals and millennials who are looking for an urban environment that offers more than just a 9-to-5 lifestyle. Some of the key characteristics … Read more
A gross lease is a type of lease in which the tenant pays a fixed amount of rent each month, and the landlord covers the property taxes, insurance, and maintenance costs. This type of lease is also sometimes referred to as a “full-service lease.” Are NNN properties good investments? There are a variety of opinions … Read more
What is Tenancy in Common (TIC)? Tenancy in Common (TIC) is an arrangement where two or more people hold ownership interests in a property. Each person has an undivided interest in the property and can transfer their interest to someone else without the permission of the other owners. How does Tenancy in Common work? Tenancy … Read more
Junior debt is a type of financing that is subordinate to senior debt. In the event of a default, senior debt holders will be first in line to receive payment, followed by junior debt holders. Junior debt is often used to finance the purchase of commercial real estate, and can take the form of a … Read more
A bird dog is a real estate investing term used to describe a person who finds and brings properties to the attention of investors. Bird dogs are typically paid a fee by the investor for their services. The term “bird dog” can also be used more generally to describe anyone who brings business opportunities to … Read more
A Real Estate Investment Group (REIG) is a company or organization that pools money from investors to purchase real estate. The group is then responsible for maintaining and managing the property, as well as finding tenants and collecting rent. REIGs can be a good option for investors who want to be involved in real estate … Read more
The pass-through rate is the percentage of income from a property that is “passed through” to the investor after expenses are paid. For example, if a property generates $1,000 in monthly rental income and has $200 in monthly expenses, the pass-through rate would be 80%. In other words, the investor would receive $800 per month … Read more
