Show of hands, how many of you out there are still confused by the APR vs Mortgage Interest Rate? Come on, truthfully? Well here is a refresher in case you forgot.   THE APR: The Annual Percentage Rate is a formula that combines the mortgage loans interest costs with a whole host of other fees associated with the loan over the life of the loan. The total of the interest rates and the fees for [...]

If you are an active real estate investor you are bound to come across the need to understand easements as they relate to your real estate purchase. Many property parcels have easements and you familiarize yourself with the various types of easements that are out there. What is an easement? Simply put, an easement is the right, privilege, or interest that one party has in the land of another. Think of it as the right [...]

I go to a lot of seminars put on by local commercial brokers. It surprises me how often experienced investors ask the same question at each of these seminars. “What is a triple net lease?” or at least the question is some variation on a lease definition. I went out on the web and found the following definition at Findlaw. I think it does a really good job of describing the types of leases that [...]

Floor Area Ratios simplify defined is the area of a building divided by the area of its lot (Land area). The formula is Floor area Ratio = Building Area / land area. The floor area ratio is often limited by local zoning codes. Make sure you contact your local planning department to verify local zoning codes and rules that may apply to your final floor area ratio calculation. Also, remember that a correct floor area [...]

Ah those pesky Home Owner Association Fees, also known as Maintenance Fees, these fees will just kill your cash flow if you do not take them into account when do your cash flow analysis. While these fees can vary from $90/month to several hundred dollars, and sometimes thousands of dollars per month, they are often forgotten when you initially find that gem of a investment property that cash flows out so nicely. I once found [...]