Commercial real estate investment strategies can be broken down into four categories: Core, Core Plus, Value-Add, and Opportunistic. These terms are used by commercial real estate investors as shorthand for the risk profile, quality, location and strategy of an individual property.
The operating expense ratio, or “OER”, is a simple formula that’s easy to calculate and reveals how efficiently a property runs on a day-to-day basis.
A project’s cost is a function of the number of hours that it takes to complete it so providing an accurate estimate is critically important. Get it right and you’ll deliver within the client’s budget. Get it wrong and you risk upsetting them.
The New Markets Tax Credits program, or NMTC, is a component of the Community Renewal Tax Relief Act of 2000. The goal of the program is to stimulate investment in low-income areas. Commercial real estate developers use the NMTC program to secure advantageous debt and equity terms for developments.
Use the following 8 tips to level up your multifamily real estate modeling!
A Ground Lease, sometimes called a Land Lease, is a long term lease whereby a property owner agrees to lease their land to an investor/developer.
Most commercial leases are dense and complex. A lease abstract makes the information more digestible by outlining pertinent financial, business, and legal provisions.
A real estate offering memorandum (also referred to as equity offering package or investment memo) is used by sponsors, developers, and other real estate professionals
At Bullpen, we ask our analyst candidates a mix of quantitative and qualitative questions to determine their competency. We’ve curated some of our favorite …
If you’ve been following Bullpen’s blog for a while, you’ve probably started to notice that we’re transitioning our excel-based real estate financial models to Google Sheets.
If you invest in commercial real estate, you’ve undoubtedly run into frustrating tax circumstances. Real estate investors commonly embrace tax-deferral strategies like the 1031 exchange
CAM charges describe the expenses a commercial property owner bills back to tenants in return for maintaining shared spaces. CAM is one of the most
Real estate development is like walking through a minefield with a 5-year-old map. It’s fraught with risks and unknown variables. Underwriting models do a great
Financial modeling is the most foundational skill in commercial real estate. However, the underwriting process usually involves an underwriting tool that is filled with headaches …
REO (Real Estate Owned) real estate refers to bank and angency owned properties transferred to the bank/agency due to a foreclosure or breach of lending contract.
There are many questions as to what the post-COVID “new normal” will look like for multifamily operations. I would submit that the “new normal” has
The following blog is a compilation of teaching notes and best practices for the creation of an institutional quality real estate investor presentation from my
A good development project starts with the land. Watch as consultant Marina Gitas shows Greg Dickerson how she analyzes a potential development using both a
Site visits are a key component of due diligence and can often be overlooked. A wise buyer will dig deep on environmental hazards, ingress/egress and easements, parking, and more. These principles apply across real estate asset classes and should be considered for any acquisition.
Opportunity zones are a hot topic in commercial real estate. Why? Investors receive big tax benefits when investing in these government-designated areas. However, no good
What is Bullpen? Bullpen connects expert commercial real estate analysts with top companies who value time and efficiency. Like a staffing agency? Not really. Bullpen
This piece is an excerpt from a recent interview with Lawrence Vo, a Bullpen freelance analyst and data center expert. In the interview, we discussed
The planning process is the most important part of a New York real estate development project. One key component of this process is a market
Content is king. Commercial real estate gurus are embracing the new age of content marketing, creating impressive online followings. These content creating influencers use podcasts,
Your commercial real estate analyst might be good, but nobody is immune to human error. Long hours and monotonous PowerPoints will cause even the most
The planning process is the most important part of a commercial real estate development project. One key components of this process is a market analysis
The situation … You run a small real estate investment/development organization. You have a ton of work … modeling new deals, pursuing relationships with brokers,
Why pay for a degree in real estate when you can learn how to model commercial real estate from the best on Youtube? We’ve compiled
When underwriting your property, an analyst can “engineer” an investment IRR by adjusting the debt or business strategy in the pro forma.
Approaching experienced professionals as a novice in any industry can be nerve racking. Before meeting an experienced broker, master your knowledge, position, and questions. Use
Think of a car manufacturer building a new model. Now, think about the team required: marketing, strategy, engineering, etc. In commercial real estate, the real
Analysts work on a vast array of tasks, but what are the top 3 commercial real estate analyst tasks? Using data collected from hundreds of
As a Bullpen freelance analysts, you’ll regularly meet with potential clients on the phone. During the phone interview, clients want to learn about you and
In 1978, the government implemented the federal historic tax credit program in an attempt to curb the demolition of historic buildings. The goal of the
Due Diligence refers to the time after signing a purchase contract that a buyer has to inspect a property. During this time the buyer is
The United States accounts for $1.6 trillion of the global tech industry, which makes it the number one contributor in the world. It’s expanding at about
An equity waterfall, also known as a distribution waterfall, maps cash flow between sponsors (general partners) and limited partners of a private equity fund. A fund’s limited partnership
One of the biggest challenges that small to medium-size investors and developers face when building a commercial real estate syndicate is finding qualified investors. We’ve
You pay your commercial real estate analyst a salary, but how much time do you get in return? Assuming 52 weeks per year and an
Commercial real estate developers in the U.S. are eager to invest in opportunity zones (OZs), federally-designated areas where real estate investors can get a significant
The commercial real estate market is more competitive than ever. How do you write a compelling commercial real estate offer on a potential purchase? Ask
Commercial real estate analysts are the fingers of the industry. A good real estate analyst can be a game changer for a growing investment firm,
1. Reduce and control fixed costs: Real Estate investors and developers remember the Great Recession and recall the pain of layoffs. Fixed costs are defined