What is a Cap Rate? The cap rate is a useful tool that is often used to assess real estate investment opportunities and draw conclusions across asset classes.
Leverage: The Double-edged Sword of Real Estate Finance Leverage, or debt financing, is an important and even necessary part of most real estate deals. However, as the 2008 - 2009 real estate downturn highlighted, there are times when too much leverage on an asset can be a recipe for heavy losses. So, it is ...
Real Estate Investment Strategy: Four Categories of Risk & Reward Within private equity real estate, assets are typically grouped into four primary strategy categories based on investment strategy and perceived risk.
What is a Cash-on-Cash Return? The cash-on-cash return typically measures operational cash flow by dividing the annual pre-tax cash flow by the total cash invested. Click to learn more.
What is a Real Estate Sponsor Promote? What is the definition of "sponsor promote?" How do promotes work, how they are justified, and how do they benefit both sponsors and investors?
What are the Differences Between Direct and Indirect (REIT) Real Estate Investments? In this article, the financial experts at CrowdStreet discuss the differences between direct and indirect investments.
Modern Portfolio Theory: How to Construct your Portfolio like the Pros Modern Portfolio Theory is the financial version of “don’t put all your eggs in one basket”, and suggests 10-20% be invested into alternative investments.
Top 6 Reasons to Invest in Commercial Real Estate See why more and more individual investors are turning to commercial real estate to diversify their portfolios.
The Beauty of the GP / LP Co-Investment Structure Private equity real estate is rooted in the underlying concept that there is an inescapable positive linear correlation between risk and reward when it comes to investment returns.
How to use a self-directed IRA to invest in commercial real estate You can own a piece of commercial real estate by learning how to maximize investing with a self-directed IRA