Archive for the 'Risk Reduction' Category

17 Oct

Four Kinds of Cap Rates: Will The Real One Please Stand Up?

Throughout the ages the value of income property has been affected by many different vogues (taxes, inflation hedge, replacement costs, etc.). These vogues come and they go. Ultimately, the value of income property is decided by the fact that income property is a business. Thus its value is determined by the bottom line. Bottom line […]

18 Sep

Capital Improvement Misconceptions

Like any other business, commercial real estate receives money and spends money. Received money is called income and is generally taxed in the year it is received. Because the tax laws don’t treat all types of money spent (expenses) the same way, accountants have broken down expenses into two main categories: operating expenses and capital […]

08 Jun

Three Strikes and You’re Out - The Real Estate Investment Version

Currently, almost every media comment concerning real estate refers to the word bubble. By inference, this indicates a collapse of real estate value that is out of the buyer’s control. Well, the facts are that most collapses of real estate value are the fault of the buyer. Avoiding loss of real estate value is what […]