Based on all the relevant economic data, what do the next twelve months have in store? NetGain has stated on numerous occasions that the next twelve months will be a difficult time for commercial real estate investors. You don’t need a degree in economics to know that consumers account for a majority (70%) of the […]

The amount of potential loss should be every investor’s first concern. Why? Because recovering from a loss becomes mathematically more difficult as the investment declines in value. For example, when an investment declines 20%, it has to appreciate 25% to break even. When that same investment declines 40%, it has to appreciate 67% to break […]

Although there are many expenses (e.g., advertising, signs, flyers, newsletters, etc.) involved in the costs of occupancy, there are four costs that are crucial in the real estate marketplace. They are:

Rent concessions
Rent reductions
Leasing commissions
Tenant improvements

Unfortunately, because of accounting treatments, it is difficult to identify these costs, which means that investors often do not recognize, much […]

Part 1: Identifying the Property’s Real Income:There are four financial components of income producing real estate that are crucial to successful investing. They are (1) income, (2) the costs of occupancy, (3) operating expenses, and (4) debt service.
Debt service cost is straightforward math and openly disclosed, as required by law. The costs of occupancy are […]