What is a 1031 Exchange?

If you are interested in, or already own investment real estate, you should know about the 1031 tax-deferred exchange. The United States Tax Code incentivizes real estate owners to continue their investment by offering to defer capital gains tax through the re-investment of profit into higher valued or larger properties. To facilitate the sale and…

What is a Capitalization Rate?

The capitalization rate—commonly referred to as the “cap rate”—is a measurement that is used to demonstrate the expected rate of return for commercial real estate investment properties. The cap rate is an annual measurement that is used by investors to compare different commercial properties for valuation and risk-return analysis. Cap rates and risk are inversely…