In this article, we begin by revisiting the definition of a cash-on-cash return but then move on to highlight the differences between cash-on-cash yields and cash distribution yields.
Tag: commercial real estate finance
In this article we walk you through the different property classes and highlight the investment opportunities specific to each.
In this article, we highlight the differences between sponsor fees and profit interests and provide some of the most common justifications for fees typical seen in commercial real estate investments.
In this article, we will describe DSCRs and explore how they can be used in conjunction with other metrics, such as IRRs to provide more insight on risks relative to returns in comparable assets.
In this article we dive into techniques investors can use to diversify based on geography, property type, investment strategy and more in order to deliver a stronger blend of balanced cash flows. We walk readers through a three-property portfolio example which clearly illustrates the principals needed to apply the techniques to their own real estate investment portfolios.
A risk-adjusted return is a measure that puts returns into context based on the amount of risk involved in an investment. In this article we walk you through a detailed process for estimating relative risk-adjusted returns across various commercial real estate investment opportunities.
In this article, we explain the different types of prefs and walk you through several examples to distinguish these prefs from other frequently conflated topics such as the preferred equity or pref equity position in the capital stack.
Diversifying within a real estate portfolio is easily achievable but it requires an understanding of the different levers you can pull to generate it. In this article, we explore those levers and highlight the various ways to pull them to assemble a well-diversified real estate portfolio.
A common resource within real estate pro formas, the Sources & Uses table is intended to serve as a roadmap that shows where project funding comes from (the Sources of Funds) and how it is to be spent (the Uses of Funds). In this article, we discuss the constituent parts of the table and how they differ from other investment tools.
Equity multiples and internal rate of return (IRR) are two important metrics to measure investment returns that are used in tandem. Each is an important analysis tool on its own. But combined, they provide even more insight on the potential benefits of a real estate investment.