The Opportunity Zone extravaganza is flooding the real estate industry with speculation and appetite for alternative funding. It is timely: as interest rates rise and bank loans are less attractive, real estate development may find alternative funding. This reminds me of the EB-5 spectacle shortly after the Great Recession, which
Grasping the financial feasibility of income-producing properties, and for-sale properties, requires several stages of analysis. Going too deep too soon in the analysis process can be a waste of time, which is why we start with a “back-of-envelope” (BOE) calculation. The BOE is a one-year snapshot of a real estate
A condominium is a building, or complex of buildings, in which every apartment or home is individually owned. Financial analysis of a condominium is different from an income producing property because the return on cost (ROC) for a condominium is generated from the total sale of the condos instead of
Multifamily residential is a rental income property that contains multiple separate housing units. A multifamily building generally has one owner, or landlord, that rents units to residential inhabitants, or tenants. If a multifamily residence is sold, it is sold in its entirety or, alternatively, converted to condominium. Financial analysis for
Hotels are lodging businesses that provide accommodation, meals, and other services for travelers and tourists. Hotel owners may own both the building and the business and are responsible for all expenses related to business operations and building improvements. However, hotel owners may also own the building and hire a managing
Industrial real estate projects are buildings utilized for industrial activities such as production, manufacturing, assembly, warehouses, and distribution. Industrial development is generally an income property with straight forward financials based on rent per square foot, vacancies and operating expenses. Here’s a Glossary that will be useful when using our software
Office development financials are similar to other income properties with the exception that common areas are also part of the leasable space. Here’s a glossary that will be useful when using our software to analyze office developments: Office Lease Office lease is the rental rate for office space, expressed in
Single family refers to dwelling units, either attached or detached, designed to be used by a single household, and with direct access to the street. It typically does not share essential building utilities with any other dwelling. Deepblocks has not yet launched the single family feature. However, all single family
Retail (or commercial) development can be freestanding or part of a mixed-use project, such as shops and restaurants on the ground floor of a residential or office building. Financial analysis for retail is comparable to any income property and is contingent on the type of lease. Here’s a glossary that
