What Is a Letter of Intent? A letter of intent (LOI), also known as a memorandum of understanding (MOU) or term sheet, is a document commonly used in business transactions to outline the key terms and conditions of a proposed agreement between two or more parties. It serves as a
Types of Partnerships in Real Estate A person can employ a variety of partnerships to buy commercial real estate. The most typical varieties include: General partnership: In a general partnership, each partner is equally responsible and liable for the success of the company. Each partner has a voice in how
How Does a Bank Tell If a Property Makes Enough Money? Banks want commercial real estate to at least pay for itself and they use a ratio to confirm called the DSCR[/caption] The ability of a borrower to make loan payments is measured by the debt service coverage ratio (DSCR).
A Discount Rate is a reasonable rate you could expect to receive in a traditional investment A discount rate is a percentage used in commercial real estate to determine the present value of future cash flows. It is sometimes referred to as the opportunity cost of capital or the needed
Stocks and Bonds VS. Commercial Real Estate Traditional investments in stocks and bonds, as well as investments in insurance products and commercial real estate, all have major differences that include the following: Investing in commercial real estate typically results in larger returns than investing in traditional stocks and bonds, but
Choose Your Team Wisely It has been said the investing in Commercial Real Estate is a team “Contact” Sport. Who is on your team? Find someone who has done it before and learn from them Do you have a good lender is looking for ways to do deals instead of
In any real estate deal, it’s important to find a good commercial realtor. Here are some tips for choosing a good commercial real estate agent
Whether buying, selling or leasing, you can use a number of good ways to negotiate.
What is meant by “Base Rent”? What is an “escalation clause”? Do I need a security deposit for commercial? Can I get out of my lease?
What is a lease? What makes it legal? What does NNN, Modified Gross and Gross mean? How do you negotiate a lease?
