Investors tend to stick with what’s comfortable and familiar even if it doesn’t check off all their objective boxes for investments, even in the case with passive investments where you’re partnering with a proven team. They tend to keep their investments close to home, but it may not be the best decision for your portfulio. As…
A recent article on MarketWatch touted, “These stocks have the highest dividend yields in the hot real-estate sector,” but a deep dive into the numbers revealed there was nothing to get excited about. The article reviewed the past 12-month of returns for the 32 real estate dividend stocks on the S&P 500 Index. Of the 32 real…
When investing in a private real estate opportunities, there are few key calculations to quickly evaluate the opportunity to see if it’s a good match for your portfolio. A property’s capitalization rate (“Cap Rate”) is the ratio of a property’s Net Operating Income (NOI) in the first year of ownership, divided by its purchase price.…
With the United States currently in the midst of its longest economic expansion in history, the nagging fear of recession is in the back of every commercial real estate investor’s mind. Some wonder how the recession, along with other factors and trends, will shape the outlook for the commercial real estate market in 2020. According…
Did you know that when you buy into either a stock, a bond, or a mutual fund, the issuing company or fund makes a prospectus available for your review before investing? How many investors know what’s in a prospectus and how many read one before investing? The answer to either question is probably “not many.”…
Commercial real estate investments typically fall into one of four baskets – Core, Core-Plus, Value-Add, and Opportunistic. Each is differentiated by their levels of risk vs. reward with Core real estate investments on the low end and Opportunistic real estate investments on the high end of the risk-reward spectrum. Ideally, as a real estate investor,…
Commercial real estate (CRE) investors have a lot of options when it comes to placing their capital. Besides the different classes of CRE, including office, industrial, retail, professional, and multifamily, investors also have the option to invest between single-tenant and multi-tenant properties. When investing in single-tenant (including single-family) vs. multi-tenant (including multifamily) assets, there is…
There’s an easy way to tell the difference between a retail investor and a sophisticated investor: look at the level of diversification in their portfolio. If you see domestic stocks, government bonds, corporate bonds, and maybe a few foreign stocks, you’re dealing with a retail investor. If you see non-standard investment classes like commodities, private…
I recently ran into a lawyer friend of mine I hadn’t seen in years and had a chance to catch up. During our conversation, the subject of finances came up, and he started complaining about living paycheck-to-paycheck. I responded with shock. Wait! What? You’re a partner in a law firm making $400,000 a year! How…
Would you want to be an angel investor? With the show, Shark Tank, angel investing was brought to the masses. If you have never seen the show, you might be asking yourself what exactly is it? Let me explain. Like the sharks on Shark Tank, an angel investor is usually a high net worth individual…