Commercial Loans, Cap Rates, and the “Quality” of Income
This is the perfect time to talk about the “quality” of income. Real estate crashes seem to strike about every ten to fourteen years, and it has been thirteen years since the Great Recession. If we were to have another commercial real estate crash, would...
Commercial Loans, Golf Courses, and Cap Rates
This is a fascinating story of how using a cap rate allowed us to value and sell a foreclosed golf course, and it helped my private investors avoid a loss and actually make a profit. There are three methods of valuing income property – the cost approach, the...
Commercial Loans and the S&L Crisis
Wow. If you walked into the executive offices of some savings and loan associations in the early 1980’s, the wealth and opulence would have amazed you – walls paneled with expensive oak, glistening marble floors imported from Italy, and genuine...