The Power of Leverage

The Power of Leverage

Financial leverage is a very powerful tool.  Much like the Egyptians moved massive stones using a only a fulcrum and lever to build the pyramids, financial leverage allows investors to make purchases larger than their capital invested.  We discussed this idea in a...
Commercial SWOT Team

Commercial SWOT Team

Facing investment dilemma?  Unsure about which property to go after or if it’s a good fit for your portfolio?  Perhaps it’s time to bring in the SWOT analysis team.  SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats.  It’s an...
Limitations on Cash on Cash Return

Limitations on Cash on Cash Return

Our previous post discussed the positives and negatives of using the capitalization rate to evaluate an investment.  Similarly, another quick and easy calculation often used in commercial real estate is the cash on cash return analysis.  The basic premise of the...

Strategic Analysis

Depending upon your interest in a commercial property (ie. investor, developer, user), you may look at facts through a different lens.  However, almost all decision makers should at least look at all of the following before pulling the trigger on a building: Market...