Real Estate Basics

Are you a photography buff but haven’t yet dipped your toes into real estate photography? Or are you a photography newbie and just starting out? You’re in luck, because we at Birgo Realty want to help. We're exploring tips and tricks to get started so that in no time, you'll be featured on the cover of Architectural Digest.

In this next installment of our private equity real estate terminology series, we’re going to take a look at one of the most important – and potentially confusing – investment metrics: the internal rate of return. 

Investing in “commercial real estate” often seems like a logical next step for serious investors who want to gain best-in-class exposure to the real estate asset class. However, it’s easy to become overwhelmed after realizing that commercial real estate encompasses a significant variety of property types. Birgo Capital is here to help introduce investors to commercial real estate property types. Let's take a brief look into each commercial real estate asset type.

Real estate investing may seem daunting, especially with a plethora of terminology and phrases. Birgo Capital's Josh Fischer breaks down one of these terms – the cash-on-cash return.

At Birgo Capital, we know that an understanding of cap rates is essential. For new investors in real estate, picking the right property to start an investment portfolio can be a daunting task. After all, purchasing an investment property is no small feat. Any time you’re putting your money on the line, it’s important to make an informed decision.

So, you’re looking for a place to host your business, huh? There’s a few different ways that you can approach the process of attaining a commercial real estate property.

Real estate investing has gained quite the reputation as a vehicle for growing wealth. It can be tough to decide whether it’s right for you though, especially when stocks are doing so well and bonds offer a guaranteed return. Real estate has a few tricks up its sleeve though- it offers the investor four different ways to get a return on their money, all at the same time.

Everyone knows that interest rates are on the rise- the economy is doing well, and to match the price to borrow money with the demand for loans, rising rates are the variable that is manipulated. This increases a homeowner’s mortgage payment, but is it really that simple?

Buying a property is a major decision. Whether you are an aspiring home owner looking to buy that perfect dream house or a real estate developer looking for your next big project, buying a property needs careful considerations. Before you take the plunge, do your homework. A big investment like a property needs to be thoroughly investigated to save you the heartache, financial woes, and legal issues at a later stage.

Over the years, Property Development has become quite a lucrative career path for many. However, many tend to jump right into it without any preparation which can have a negative effect on their finances. You’ll need to educate yourself on the property, the present markets, the finance, town planning laws, the construction processes and the marketing of real estate projects. Here are a few guidelines to get you started:

Becoming a successful real estate developer requires perseverance and a unique set of skills. Here are some important traits that you need to inculcate to become one.

The real estate world is intrinsically connected to other professional fields. The links vary, but in the financial sector, there is a concept which has become very similar to the stock market. A REIT, or real estate investment trust, is a perfect example of the intersection of finance and real estate.

Cap rate, a term frequently used in real estate, demonstrates the return on one’s investment in a property, usually a commercial building. It is defined as annual operating net income divided by the cost of the property. What needs to be noted for financing purposes, and could easily be forgotten by some people, is that debt on the property is not taken into account for. Also, it needs to be understood by potential investors that cap rate is not the same as the cash flow.

Other than actually identifying a property, the most important thing to consider is money. Some properties can be purchased and sold for millions of dollars, amounts which not all people have access to at any given moment. There is a multitude of ways which a person can find the proper funding for his or her property. In real estate funding, much of will depend on personal credibility and the type of investment property.

Previously, the concept of a REIT was discussed and demonstrated as a great way to invest one’s money with the hopes of ensuring a return on the investment. While there are risks with any investments, the upside was much greater than the downside for REIT investing.