Focusing on the formulation of financial analysis to allocate real estate assets to sectors of Commercial Real Estate: Mixed-Use Real Estate, Retail, Office Building as well as Commercial Multifamily Real Estate. In order to evaluate the assumptions of investment opportunities, we generate financial modeling for real estate investors and provide financial consultation based on investment risk appetite.
Furthermore, we build Basic Financial Feasibility Models (BFFM) to calculate an estimated maximum investment value and determine if operating financial leverage is positive or negative. We build a before-tax discounted cash flow (DCF) model and compare DCF model to the basic financial feasibility model analysis. The DCF model projects future cash flows and discounted them back to the present using a discount rate -investor's risk-adjusted before-tax cost of equity capital.
After analyzing the model, commercial real estate investors forecast Net Operating Income (NOI), before-tax equity cash flows, IRR and NPV.
Furthermore, we build Basic Financial Feasibility Models (BFFM) to calculate an estimated maximum investment value and determine if operating financial leverage is positive or negative. We build a before-tax discounted cash flow (DCF) model and compare DCF model to the basic financial feasibility model analysis. The DCF model projects future cash flows and discounted them back to the present using a discount rate -investor's risk-adjusted before-tax cost of equity capital.
After analyzing the model, commercial real estate investors forecast Net Operating Income (NOI), before-tax equity cash flows, IRR and NPV.
Services
Avoid Balloon Payments: If investor gets a loan that includes a balloon payment, the investor take the risk.
Invest in Real Estate Investment Trust (REIT) which offers low volatility making them ideal for low risk investor.
REIT pays out 90% of profits as unqualified dividends to Investors.
As a result of the 2017 tax reform legislation, the highest effective marginal rates was lowered from 37% to 29.6%.
Contact Edgard Asensio, MBA to discuss financing strategy, taxation, risk analysis, market area supply and demand analysis by real estate asset e.g.
Invest in Real Estate Investment Trust (REIT) which offers low volatility making them ideal for low risk investor.
REIT pays out 90% of profits as unqualified dividends to Investors.
As a result of the 2017 tax reform legislation, the highest effective marginal rates was lowered from 37% to 29.6%.
Contact Edgard Asensio, MBA to discuss financing strategy, taxation, risk analysis, market area supply and demand analysis by real estate asset e.g.
In order to formulate a wealth accumulation strategy, investors evaluate the project's free cash flow as well as compare financial indicators including gross schedule income, gross rent multipliers, capitalization rates and cash on cash returns.
Thereafter, investors are prepare to execute a real estate purchase agreement, identify an accomodator and re-invest their proceeds on a replacement property.
A 1031 real estate exchange is a way to defer income taxes on investment property.
Investors will have to pay income tax eventually.
Thereafter, investors are prepare to execute a real estate purchase agreement, identify an accomodator and re-invest their proceeds on a replacement property.
A 1031 real estate exchange is a way to defer income taxes on investment property.
Investors will have to pay income tax eventually.
1. Capitalization rates remain attractive due to fall in yields for competing investments.
2. Cap rate compression -as interest rates continue to fall, the market value of an income property has increased, investors are astonished at the prices that are being offered for their buildings (Property values continue to rise fueled by record low mortgage rates).
These rates follow the yields on U.S. Treasury Notes.
Yields on the 10-year Treasury Note reached an all-time low in 2020.
Fixed mortgage rates and Treasury yields tend to move together because fixed-income investors compare the returns they can get on government and mortgage-backed securities.
2. Cap rate compression -as interest rates continue to fall, the market value of an income property has increased, investors are astonished at the prices that are being offered for their buildings (Property values continue to rise fueled by record low mortgage rates).
These rates follow the yields on U.S. Treasury Notes.
Yields on the 10-year Treasury Note reached an all-time low in 2020.
Fixed mortgage rates and Treasury yields tend to move together because fixed-income investors compare the returns they can get on government and mortgage-backed securities.
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