Tax Advantages with Raleigh Commercial Real Estate

There are often tax advantages available that increase the profit potential of an investment.  These can include a variety of tax incentives meant to boost business in a particular area and may be available for a short time or a long time.  They may … [Continue reading]

What is a Cap Rate?

The cap rate (or capitalization rate) is the most important and useful calculation in use in the Raleigh commercial real estate market.  It is very, very important to understand and use cap rates.The cap rate attempts to measure how much of the … [Continue reading]

What is a Cash on Cash Return?

In addition to the cap rate, there is one more number that gets used quite a bit to determine the income potential of a property.  The calculation is known as the Cash on Cash Return.Cash on Cash Return measures the cash left after all expenses, … [Continue reading]

Net Operating Income

Multi-family residential property investments should be made almost exclusively based upon the numbers.  Ultimately, it is an investment that needs to return a certain amount.  The amount of return is partially based on what is called the 'Net … [Continue reading]

The Phases in the Cycle of Development

Neighborhoods can be said to go through a four-phase cycle:An area starts by being newly developed or recently redeveloped.  This is the BIRTH part of the cycle. The area then grows to maturity.  This is the GROWTH part of the cycle. The … [Continue reading]

Multi-Family Properties

Multi-family properties can often be outstanding investments.  For this reason, there is an abundant supply of buyers, all of them looking for good multi-family residential property investments.Because the returns to the owner can be so … [Continue reading]

How to Market and Sublease Raleigh Commercial Real Estate

Unfortunately, circumstances arise when a company no longer has use for commercial space it has leased. Needs may have changed regarding the size of the business or location, or a company may have experienced financial reversals and must rid itself … [Continue reading]

Gross Adjusted Income & Gross Scheduled Income

To determine the Gross Adjusted Income, you must start by determining the Gross Scheduled Income.  To arrive at the Gross Scheduled Income, add up all of the rents for the year.The Gross Scheduled Income is simply the amount of income scheduled … [Continue reading]

How to Calculate Vacancy Rate

To arrive at the actual vacancy rate, compare the gross scheduled income to the actual income derives from the rents.Annual Gross Scheduled Income - Actual Annual Income = True Vacancy FactorThe gross scheduled income of a property is the sum … [Continue reading]

How Age & Condition Affect Multi-Family Properties

Age and condition are very important considerations when considering a multi-family property to purchase.  One reason is that rents will be reflective of the age and condition.Newer apartments are often rented for more money.  Older units can … [Continue reading]