Monthly Archives: May 2018

Rent Increases: A Big Margin of Safety When Purchasing a Commercial Property

One great way for real estate investors to protect themselves after purchasing a commercial property is to be able to increase rents shortly after buying. This accomplishes two things: The debt coverage ratio (Net Operating Income – Debt Service) improves, and the value of the property increases. One rent increase goes a long way in […]

Real Estate Investing: Discussion of Cap Rates

One of the first things real estate investors look for when purchasing a commercial property whether it’s an office building, retail center, industrial building or an apartment complex is the capitalization rate, or cap rate. For newer investors, the cap rate is when you take the property’s net operating income (NOI) and divide it by […]