A good operating expense ratio for multifamily properties typically ranges from 35% to 50%.
A rent ledger serves as a comprehensive record of all financial transactions between a tenant and a landlord.
Cash for keys is a method where landlords offer tenants a financial incentive to leave the property voluntarily. This bypasses the lengthy and costly eviction process.
Renter-friendly flooring in multifamily properties typically includes options that are easy to install, durable, and aesthetically pleasing.
An absentee owner is typically characterized as someone who owns a property but does not live in, visit, or personally oversee it.
A wholesale real estate contract is a legal agreement. In this agreement, a wholesaler secures the rights to purchase a property at a predetermined price.
The typical range for these fees falls between 4% and 12% of the gross monthly rent. This depends on factors such as property size, location, and the range of services offered by the property management company.
At its core, condo deconversion involves selling an entire condominium building in a single transaction to a real estate investor. The investor then converts the property into rental units.
Forced appreciation in real estate is a strategy used by savvy investors to enhance the value and equity of their properties.
In short, yes, it is possible to obtain a business loan for purchasing a rental property under certain conditions.
A loan sizer determines the maximum loan amount based on critical financial metrics. For example, these metrics include the Net Operating Income (NOI) and the Debt Service Coverage Ratio (DSCR).
The DCR is calculated by dividing the net operating income (NOI) of a property by its annual debt service requirements.
The DCR measures the ability of a property's income to cover its debt obligations. It does this by dividing the net operating income by the total debt service.
ADR reflects the average revenue earned per occupied room over a specific time frame. It offers valuable insights into pricing strategies and revenue potential.
The parking ratio is calculated by dividing the total number of parking spaces by the total leasable or rentable square footage, then multiplying by 1,000.
This clause sets a cap on the operating expenses that a landlord covers. Usually, the cap is based on expenses from a predetermined base year.
An encumbrance is any claim or restriction on a property that affects the owner's ability to fully control or sell it.
Deeds are legal documents that transfer ownership of property. Each provides varying levels of protection and assurance to the parties involved.
A marketable title is one that is clear of significant encumbrances, making it acceptable to a reasonable buyer without fearing future legal claims against the property.
A Certificate Backed Mortgage (CBM) is a type of mortgage backed by mortgage-backed securities.
In most cases, a garage does not count as square footage. However, it does count if it has been transformed into a finished and climate-controlled living area.
ATR, or Ability to Repay, plays a crucial role in multifamily real estate financing.
This term refers to a dynamic investment strategy where properties are rented out for short durations, typically less than 30 days.
Accumulated depreciation is best described as a contra asset.
The load factor is the ratio of rentable square footage to usable space.
