Capital expenditures are typically the larger expenses required to keep a property in good condition over time. When investing in commercial real estate, it’s essential to have a solid understanding of capital expenditures (CapEx).
Can you imagine insuring a $10,000,000 asset for a maximum of only $20,000 in value? That is $9,980,000 in uninsured exposure! Consultants, especially architects, engineers, and material testing agencies try to get you to do that all the time! Why? Because they (their insurance carriers) are constantly involved in legal battles over who is at …
And what you can do about it. The construction industry in the US has a big problem, and it is not rising labor or material costs. The industry has managed to fool real estate investors and developers for the better part of 10 years. Maybe it is the blue collar, “can do” attitude. Maybe it …
Why the US construction industry has a big problem Read More »
100+ Questions to help you NOW. Hurricanes suck, unless maybe you’re a surfer… or weather reporter. Recovery and clean up afterward are even tougher. We wanted to share an a la carte list of questions that can help you, as real estate Owners and Investors. Whether you are dealing with an insurance carrier, independent adjuster, …
Best practices for insurance claims following a natural disaster Insurance claims can be challenging. 542,000,000. That is the number of results in Google when you search for “insurance claims” today. How do I know that insurance claims are tough? I used to investigate residential and commercial real estate damage and provide forensic assessments to insurance …
After hanging up the phone with Dave, I felt like a fool. How could this happen to me? With 10-plus years of experience in real estate, you would think I could prevent something like this from happening. Why did we not ask for a material submittal? Why didn’t we request the manufacturer’s material spec and …
How to find Black Swans Back when the phrase was coined, Black Swans were thought to not even exist. While most people in the finance world would attribute “black swans” to Nassim Nicholas Taleb, it’s a term that actually dates back to the 17th century. The Old World idea assumed that all swans must be …
Much more than a risk strategy… It’s no secret that Benjamin Graham has been characterized as one of the greatest investment advisors of the 20th century with his philosophy of “value investing.” While value investing has thrived as a strategy in the securities world since 1949, in the real estate industry value add seems to …
Three common mistakes to avoid during tenant improvement According to the CCIM Institute, tenant improvements, or leasehold improvements, are the customized alterations a building owner makes to rental space as part of a lease agreement, in order to configure the space for the needs of that particular tenant. These include changes to walls, floors, ceilings, and lighting, among …
suprising. Let’s dig into the numbers Nothing says the Big D like big data. 2017 was a big year for US real estate, especially for commercial construction in Dallas. Well, it depends how you define big. We went a little crazy and drilled down into the permit records from last year. The City of Dallas …
The contractor with the most permits in 2017 in Dallas is . . . Read More »