What Is A Cap Rate In Commercial Real Estate?

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In commercial real estate investment analysis, one metric that is often used is "cap rate." Based on its name, cap rate means capitalization rate, and it provides a simple yet powerful way to value a property's net income relative to its market value. While it is not a comprehensive measure of investment return, it is often used to compare the relative income potential of different properties. When it comes to selling a property, executing a 1031 exchange, or rebalancing your portfolio for retirement, it is important to know about cap rates to make better decisions on your investment property wealth.

Jun 9, 2025

Real Estate Syndication vs. REIT

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Real estate investors who wish to transform their hands-on property management into passive income strategies may consider Real Estate Syndications and Real Estate Investment Trusts (REITs) as viable passive real estate investment choices. Both investment options grant real estate exposure without direct property management, but they operate under distinct structural frameworks, liquidity profiles, taxation systems, and control mechanisms.

May 21, 2025

Important Things to Know About Wash Sale Rules

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Gains and losses are part of investment activity. While the IRS taxes your capital gains, you could use the capital losses to offset taxable income, provided you're not triggering the wash sale rule. Unfortunately, many investors unwittingly trigger the wash sale rule when they reinvest dividends or rebalance portfolios after selling at a loss.

May 2, 2025

Understanding Real Estate Investment: What it is and How to Buy

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For many, investing in real estate is often viewed as a way to complement traditional asset classes. While outcomes vary, real estate investments may provide benefits such as diversity, passive income, and additional benefits.

May 1, 2025

The Pros and Cons of Direct Real Estate Investments

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If you’re considering an investment in income-generating real estate, the correct strategy can lead to potential wealth generation. One such approach is a direct real estate investment.

Apr 27, 2025

How To Buy Raw Land

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Raw land is property that hasn’t been developed or built upon. It lacks buildings or structures, public utilities like sewer, water, or power and paved roads. It’s speculative and generally doesn’t generate income.

Apr 22, 2025

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