Why Commercial Real Estate?
Potential Benefits of Real Estate Investing
*Cash Flow
Properties may earn rental income from tenants. The more stabilized the property or higher its occupancy, the greater the chance of a steady and predictable stream of cash.
*Inflation Protection
Over the long term, real estate may provide a hedge against inflation, since property values and rental income typically increase during periods of inflation.
*Diversification
Real estate can provide diversification within a portfolio of traditional investments such as stocks and bonds.
*Cash Flow
Properties may earn rental income from tenants. The more stabilized the property or higher its occupancy, the greater the chance of a steady and predictable stream of cash.
*Inflation Protection
Over the long term, real estate may provide a hedge against inflation, since property values and rental income typically increase during periods of inflation.
*Diversification
Real estate can provide diversification within a portfolio of traditional investments such as stocks and bonds.
The Business Plan
The real estate company owns the business plan and underlying assumptions. Burris Development reviews the business plan and underwriting to dive into:
Key Business Assumptions: Burris Development draws on years of experience and 3rd party data sources to review the key assumptions in the plan for reasonableness. For example, the team reviews comparables to other properties that have been rented in the market to sense check the business plan.
Proof of Debt Commitment: The team reviews the potential debt terms, interest rate assumptions and reserves as part of an evaluation of the sources and uses of capital.
Management Fees and Compensation: The team reviews the fees and compensation levels, including whether they are transparently disclosed.
Planned Exit Strategy: The team also reviews the projected hold period and exit strategy in light of possible market conditions
Key Business Assumptions: Burris Development draws on years of experience and 3rd party data sources to review the key assumptions in the plan for reasonableness. For example, the team reviews comparables to other properties that have been rented in the market to sense check the business plan.
Proof of Debt Commitment: The team reviews the potential debt terms, interest rate assumptions and reserves as part of an evaluation of the sources and uses of capital.
Management Fees and Compensation: The team reviews the fees and compensation levels, including whether they are transparently disclosed.
Planned Exit Strategy: The team also reviews the projected hold period and exit strategy in light of possible market conditions