CRE FAQs

Commercial real estate loans are structured similarly to residential mortgages but often with higher down payments, shorter terms, and different underwriting criteria.

When selecting a commercial real estate broker, consider factors such as experience, expertise in the local market, track record, communication skills, and alignment with your investment goals and needs.

Real estate investment can be financed through various methods including traditional mortgages, private loans, partnerships, or real estate investment trusts (REITs).

Investors can invest in commercial real estate directly by purchasing properties, or indirectly through real estate investment trusts (REITs), partnerships, or crowdfunding platforms.

Commercial real estate can be sold through listing with a brokerage firm, marketing to potential buyers, negotiating offers, and completing the sale transaction typically with the assistance of a real estate attorney.

Commercial real estate valuation can be done using various methods such as the income approach, sales comparison approach, or cost approach, depending on the property type and market conditions.

Commercial real estate can be a good investment opportunity for those seeking income generation, diversification, and potential appreciation, depending on market conditions and individual factors.

Net lease properties, or commonly known as NNN (Triple Net Lease) properties, are commercial real estate assets where the tenant is responsible for paying expenses such as property taxes, insurance, and maintenance costs in addition to rent. A net lease investment involves purchasing a property where the tenant is responsible for paying operating expenses such as property taxes, insurance, and maintenance costs, in addition to rent.

A commercial real estate broker is a licensed professional who assists clients in buying, selling, leasing, or investing in commercial properties. They provide market analysis, property valuation, negotiation, and transaction management services, representing buyers, sellers, landlords, and tenants in negotiations and transactions.

A real estate brokerage is a firm or company that employs real estate agents who facilitate real estate transactions between buyers and sellers.

A REIT is a company that owns, operates, or finances income-producing real estate across a range of property sectors. REITs offer investors a way to invest in real estate without directly owning property.

An investment property is real estate purchased with the intention of generating income, either through rental income or capital appreciation, rather than for personal use.

Cap rate (Capitalization Rate) in commercial real estate is a measure of the return on investment based on the property’s net operating income and its current market value.

Commercial real estate encompasses properties used for business purposes such as office buildings, retail spaces, industrial warehouses, and multifamily apartment buildings.

NOI (Net Operating Income) in commercial real estate refers to the total income generated from a property minus the operating expenses, excluding depreciation and interest expenses.

In a triple net lease (NNN), the tenant is typically responsible for paying property taxes, along with other operating expenses such as insurance and maintenance costs.