Real estate investment trusts (REIT) are corporations that own or finance income-producing real estate properties. They are modeled after mutual funds and typically own a portfolio of real estate within a specific sector. REITs pay out 90% of their annual profits in dividends to their investors and are taxed at a low rate. In this…
Buying a Short Sale: What It Is, Where to Find One & How to Finance It
A short sale is a real estate sale in which the profits made are less than the existing loan on the property. A short sale typically occurs at or below market value and is successful only when the lienholder agrees to accept less than what’s owed. Short sales commonly occur when a seller is in…
Types of Surety Bonds: Understand the 4 Main Surety Bond Types
Surety bonds are purchased by principals to protect third-parties from a failure to meet contractual obligations. There are 4 main types of surety bonds. Contract surety bonds and commercial surety bonds protect private and public interests and are the most common. Fidelity surety bonds and court surety bonds protect against theft and litigation and are…
Buying vs. Leasing Commercial Real Estate
A common question among small business owners is whether to buy or lease commercial property. The most important thing they want to know about are the costs. To help, we ran an analysis on a real commercial property for sale and created a detailed example of the costs and benefits of buying vs. leasing commercial…
How to Lease Commercial Real Estate: The Ultimate Guide
A commercial real estate lease is a rental agreement that allows a business to rent commercial space from a landlord. Commercial leases come in three main forms: full-service leases, net leases, and modified gross leases. The process of identifying, negotiating, and signing a commercial lease is a long process and it’s important to understand the…
HomeStyle Loan: What Is a HomeStyle Mortgage & Who Is It Right For?
-A HomeStyle loan is a government-backed, permanent mortgage that can be used to purchase and renovate an owner-occupied primary residence between one to four units. Also called Homestyle Renovation (HSR) mortgages, HomeStyle loans can also be used by real estate investors to purchase and renovate a single-unit second home or investment property. However, HomeStyle loans…
FHA 203(k) Loan: The Ultimate Guide to the FHA’s Renovation Loan
An FHA 203(k) loan is a government-backed, permanent mortgage used to purchase and renovate a primary residence. A Federal Housing Administration (FHA) 203(k) loans are exclusive to owner-occupied purchases and renovations and are not suitable for real estate investors looking for renovation financing. Investors who are interested in rehab projects should instead read our guides…
How to Choose the Best Restaurant Location for Your Business
Opening a restaurant is all about location, location, location. However, not every restaurant is suitable for every location, and vice versa. It comes down to a combination of restaurant concept and ideal customer. If you can define your restaurant type and identify your target demographic and its most populated areas, you’ll be well on your…