What is Credit Risk?
Do real estate investors incur credit risk? If you are on the lending side of a real estate deal, then yes, you’re likely taking on credit risk. But what about investors buying properties or investing in real estate funds?
A Guide to UPREITs: What They Are, How They Work, and More
An UPREIT, which stands for Umbrella Partnership Real Estate Investment Trust, allows owners of appreciated real estate to transfer a property from individual ownership into a trust in exchange for shares in the trust. This exchange is also known as a Section 721 exchange, which is designed to allow the investor to defer capital gains taxes.
Why Invest in Affordable Housing?
According to the National Low Income Housing Coalition, there is a shortage of seven million affordable homes in this country, and 75% of extremely low-income families must spend more than half of their income on rent. There is no community in the U.S. where one person working full-time in a minimum wage job can afford the rent on a two-bedroom apartment. Further, the coalition points out that increasing access to affordable housing is the most effective way to reduce childhood poverty and improve economic mobility in the United States.
Why is Risk an Important Consideration When Investing?
Without risk, there can be no return. This is the unfortunate relationship between risk and return. Investors who seek out a higher return will usually be met with higher risk. Those investors who want a lower risk investment may also have to settle for lower returns.
When to Consider Selling Rental Property
You acquired a duplex, small office building, or stand-alone retail center for investment purposes several years ago. Or, you might have inherited rental or investment property from a grandparent who passed away a while back. Whatever your situation, you own rental property as an investment, and it seems to be providing very good cash flow.
How to Manage a Rental Property
Managing a rental property can be very difficult as rental property owners are responsible for managing contracts, repairs, maintenance, finding tenants, and more. This post will explore how to tackle some of the most important aspects of rental property management, which includes:
How Can I Invest in Affordable Housing?
By definition (according to the U.S. Department of Housing and Urban Development), housing is affordable if it requires no more than 30% of a household's income. The determination of affordability is based on an area's median income when reports are made about how much affordable housing is available.
What is Asset-Level Risk?
Asset-level risk analyzes risk associated with a specific property. This analysis isn’t just about the property and its investment structure. Asset-level risk also involves the surrounding properties and various local economic trends. No analysis is complete without factoring in general market risk as well. In this article, we’ll go over in detail what asset-level risk is and the type of analysis needed to help quantify and identify risk at this level.
How to Calculate Liquidity Risk?
Real estate isn’t known for its liquidity. But what is liquidity, and why should real estate investors care? Liquidity is the ability to discover the current market price of an asset and immediately convert the asset to cash at that price. To discover the current market price, buyers and sellers need to be readily available at that price. Real-time price discovery allows an investor to convert their asset into cash. There are many levels to that statement. In this article, we’ll unpack them and go through why we think it is important to consider liquidity risk.
How to Find Investment Properties
Investing in real estate is recognized as potentially one of the most successful paths toward wealth accumulation. No investment is guaranteed, and even real estate can lose value, but rental properties may offer both appreciation and passive income for the investor. As you prepare to enter the investment property arena or expand your interests, consider some options.
