What is a Credit Rating?
A key concept in real estate investing, particularly with single-tenant, net-leased properties, is the credit quality of the underlying tenant. A credit rating is an estimate of an entity’s ability to honor its financial commitments.
8 Ways to Mitigate Risk in Real Estate Investing
Part 3 in the Realized Series "Risk Management and Real Estate" Part 1: Risk In Real Estate Investments Part 2: How to Reduce Risk in Real Estate Investing “Quick buck artists come and go with every bull market, but the steady players make it through the bear markets.” -Lou Mannheim to Bud Fox, Wall Street (1987 film)
How to Reduce Risk in Real Estate Investing
Part 2 in the Realized Series Risk in Real Estate Investments Part 1: Risk In Real Estate Investments Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Risk In Real Estate Investments
Part 1 in the Realized Series "Risk Management and Real Estate" Part 2: How to Reduce Risk in Real Estate Investing Part 3: 8 Ways to Mitigate Risk in Real Estate Investing
Real Estate As An Inflation Hedge
Inflation, from an economic standpoint, can be defined as a prolonged increase in prices of goods and services. If inflation rises faster than your income or value of your assets, in effect, you are losing ground on your purchasing power or real (inflation adjusted) net worth. It’s no wonder that savvy investors are concerned with inflation and turn to real estate as an important piece of their investment portfolio.
Losing Money in a 1031 TIC?
Recently, I’ve had several conversations with real estate investors who own Tenants-In-Common (TIC) replacement properties that are going to be sold in the near future. In each case, sometime during the past decade they used part of their 1031 exchange funds to purchase TIC properties that are now being sold because mortgage is coming due. Unfortunately, several of these investors will receive substantially less in sale proceeds than they originally invested due to poor property performance. Needless to say, these folks aren’t real happy.
Tax Reform May Eliminate 1031 Exchanges & Mortgage Interest Deduction
Part 1 in the Realized Series "2017 Tax Reform Impact on Real Estate"
Benefits of Real Estate Investing
According to a Morgan Stanley Wealth Management Investor Pulse (December 2013) survey of 300 millionaires, 77 percent indicated they owned real estate as an alternative investment – more than double the next closest choice of alternative investments.¹ With so many investment options these days, real estate remains the investment of choice for several reasons:
Fractional 1031 Investment Benefits
Real estate investors contemplating a 1031 exchange must make many decisions regarding their choice of replacement property. Investors must determine the type of property, location of the asset, and whether or not to reinvest into multiple assets. Investors then have to thoroughly evaluate their options and select just a few potential choices -- all within 45 days from selling their investment property!
Six Benefits Of Single-Tenant Net-Leased (STNL) Properties Investments
A single-tenant net lease property is one which, as the name implies, is fully leased to one tenant on a net lease basis. The lease is often a triple net lease , meaning the tenant is fully responsible for all property operating expenses. A single-tenant net lease (STNL) offers investors the opportunity to own a (typically) freestanding property occupied by a single tenant. New leases for these properties are often longer-term (10 to 25 years) and tenants frequently include household-name businesses such as Walgreens, McDonald’s or Starbucks. In addition, net lease properties may provide the following investment benefits:
