In Today’s Market, Zero Cash Flow Makes Sense

One of the least understood types of real estate structure in the net lease market today is a zero cash flow property.  Put simply, it is a highly-leveraged property backed by a long-term, bond-quality lease guaranteed by an investment-grade credit tenant. The tenant of the property is typically on a lease of 20 years or more, and has a credit rating of at least BBB.  The result is a lender is comfortable with monetizing the entire rent stream, so that the financing amounts to as much as 85 to 90 percent loan to value. The term “zero cash flow,” or “zero” as it is sometimes called, refers to the fact that all of the property’s net operating income goes to service the underlying loan, and there is none remaining to be distributed to the owner. This might not sound attractive to all investors, but a property with this structure does have its benefits. [Read more…]

March 2015 Real Estate Humor


Top 80 US Real Estate Crowdfunding Sites Open New Doors in 2015

The evolution of crowdfunding as a new investment vehicle in the US real estate industry has been remarkable in the past few years. Since the JOBS Act was passed into law in 2012, platforms specializing in crowdfunding real estate projects have mushroomed across the country.

Today, platforms offering innovative services to their clients dot the industry landscape. With differences in the type of instrument (debt or equity) offered to clients, type of services offered, and minimum amounts allowed as investment, these unique platforms have succeeded in bringing crowdfunding into the mainstream of real estate investing. [Read more…]