Closing Costs are the costs associated with the sale of a real estate property. Both the buyer and seller are responsible for paying these costs. It is important to remember to factor in Closing Costs into your budget when looking to purchase a property since they can be a large expense.
Read MoreBridge loans can be extremely risky. They are not regulated like traditional mortgages, not to mention the possibility of defaulting on two mortgages. Bridge loans are much more difficult to obtain. Before applying for a bridge loan, one should weigh the pros and cons and decide if the risk is worth it.
Read MoreRUBS or Ratio Utility Billing System is a method of calculating a tenant’s utility bill based on factors such as apartment square footage, number of beds, occupancy or a combination thereof. Many properties, especially older ones, are not individually metered nor is it feasible to install individual meters for each unit. If each unit is not individually metered, the RUBS real estate methodology can be used to help landlords recover costs without directly increasing prices.
Read MoreCash sweeps can be a valuable tool while you are holding onto an investment and are not quite ready to make a distribution yet if the cash sweep is used wisely. It can also keep you accountable for making sure extra cash for an investment is being used to the best of its ability, whether that be making early debt repayments or simply holding onto the cash for future operating payments and earning a high rate of interest.
Read MoreCalculating the NSF is more difficult to calculate than GSF, but it is valuable for tenants to know how much space is available for their use. Net Square Feet is made up of Assignable Square Feet and Non-Assignable Square Feet.
Read MorePreferred Return, often called ‘pref’, is a minimum return that Limited Partners in a fund must receive before any carried interest can be distributed to General Partners. A preferred return is expressed as an annual rate of return and can be thought of as the minimum expected return for the investment.
Read MoreAt Top Self Models (TSM) we create monthly cashflow projections for every project to provide a granular level of analysis. Monthly periods allow us to analyze the project on a much deeper level and manipulate various assumptions. Although monthly cashflows are excellent for providing in depth analysis, it may also be more difficult to understand the big picture as there are so many details. In order to understand the model on a higher level one can convert the monthly cashflows into annual cashflows.
Annual cashflows provide a quick snapshot or overview of the project on a yearly basis. By converting monthly to annual cashflows, less space is taken up on a sheet providing a much clearer picture of the project.
Read MoreA leasing commission (LC) is a fee paid by a building owner to a leasing broker for procuring a tenant that successfully executes a lease with the owner. LCs are paid at the start of the lease. They are commonly paid both when a new tenant occupies a suite, and when an existing tenant renews a lease.
Read MoreThe debt yield is a metric used by lenders to determine the risk of a loan and how much they would be able to recover if the loan defaults expressed as a percentage. This is one of the key metrics lenders use in determining how much they are willing to lend to projects.
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