Not exact matches
Although a total of $ 800,000 in real estate crowdfunding sounds like a lot, I view it as buying a $ 800,000 portfolio of 12 + different
properties across the country
at much
lower valuations and much higher net rental
yields compared to having $ 2,740,000 in one very expensive rental
property in San Francisco that is now
at risk of depreciating due to declining rents and new tax legislation that limits mortgage interest deduction and SALT deduction.
You can invest in higher
yielding properties at much
lower valuations for $ 5,000 — $ 10,000 minimums versus coming up with a $ 200,000 + downpayment and taking on $ 1,000,000 in mortgage debt for the median SF or NYC home price.
Management's deep industry connections mean that the company can source new acquisitions from private markets
at far
lower prices than many other REITs, resulting in cash
yields on new
properties that are significantly higher.
When combined with the variation in
property values, these rates ultimately produce
lower yields for higher - poverty districts than
low - poverty districts —
at $ 3,830 compared to $ 8,300 per - student.
The rental
yield for commercial
property is usually 9 - 12 In contrast,
yield for residential
property is much
lower at 3 - 4
Renowned for sourcing
properties that offer high rental or capital
yields at a
low entry point, Positive Real Estate shows clients how to maximize the growth of their
property portfolio without reducing their serviceability.
However, the improved loan performance has come
at the price of two important changes in the market — higher going - in debt
yields for new financing, even in the case of centers that are well - operated, and the bifurcation in pricing between class - A malls and
lower tier
properties.
«The borrowing costs were
at historic
lows so we were able to finance
properties at very attractive leveraged
yields and we were able to buy them
at fair cap rates,» Ullman notes.
NIC: The
low interest rate environment has caused many banks to look
at debt
yields (
property NOI / total proposed loan balance) in addition to debt service coverage ratios.
The due - on - sale clause was a way of eliminating these
low yielding loans as soon as the
property was sold, so that it could re-loan the money
at current higher rates or negotiate a higher rate in the event the purchaser assumed the existing loan.
Simon
Property may not appear as the cheapest mall REIT in terms of
yield and P / FFO ratio, particularly since some of its peers, such as Macerich, are trading
at slightly
lower multiples of FFO and offer a dividend
yield of ~ 5 %.