What is a Cap Rate Ratio?

It should be no surprise that one of the biggest concerns for investors is their rate of returns. There are a few different types of calculations that investors can use to determine different rates of returns, and one of the most popular for real estate investments is the capitalization rate. How is The Cap Rate Calculated? Also known as a cap rate, this calculation uses the net income that the property is expected to generate to determine the overall rate of return. This means that this calculation is a projection, or estimate, of what the investor can expect to receive in the...

Real Estate and Retirement: How Can Investing Help You Retire?

When you think of investing, how often do you correlate it to your overall retirement plan? Hopefully you consider this often, especially when investing in real estate. As research shows, the current state of retirement plans country-wide is declining because of longer life expectancy and rising health care costs. This is explained thoroughly by Alicia Munnell, a professor at Boston College’s Carroll School of Management, author. Recently, she answered some questions in an interview that we think is important for our investors to hear about. Always dreamed of retiring comfortably? Read on to see how it’s still possible! Older Generations vs. Newer Ones Munnell...

Residual vs. Passive Income

Passive income is money that is earned and has little or no ongoing effort involved. Residual income is not a typical type of income, but rather a calculation that determines how much discretionary or “spending” income an individual or entity has available after financial obligations. Passive Income One example of passive income is the profit earned from a real estate property (such as a rental or commercial space) that is owned by investors who are not actively involved in managing the property. Another example is a dividend-producing stock that pays an annual percentage. For both of these examples, the investor has...

Fixed-Term vs. Month-to-Month Leases

When investing in a residential real estate, you will encounter two different types of leases, fixed-term and month-to-month leases. There are important differences between these two types of leases, and we want to go through some of the pros and cons with you. Fixed-Term Lease First, let’s go over what it means when a tenant signs a fixed-term lease. A fixed-term lease is a rental agreement with a specific start and end date. Typically, these leases range anywhere from 6 months to 2 years. The average length of a fixed-term lease tends to be 12 months. When a fixed-term lease ends, the...

What is Property Income Trust?

Our team at Mascia Development thinks that it is important that we properly introduce you to our newest investment fund, Property Income Trust. We have been providing you with knowledge and our take on some very important aspects of real estate and investing, and now we want to take a few minutes of your time to tell you about who we are and what we do. A Formal Introduction First, we want to tell you how Mascia Development and Property Income Trust are related. Mascia Development is the real estate investment company that Mark Mascia started 13 years ago. Over these last...

Commercial vs. Residential Real Estate Investments

If you have been in the investing game for a while or you are just now doing your research to begin your investing journey, you have surely heard of both commercial and residential real estate investment opportunities. Today we want to take the time to tell you the difference between the two and how that affects your investments. Mascia Development deals in commercial real estate, but that does not mean we only want to educate you about that side of real estate investing. Keep reading for our breakdown of what sets apart commercial from residential real estate. Who You Know Versus What...

Diversified Portfolios: Why Build Them?

In previous articles, we have mentioned diversified portfolios and different ways you can create one. However, it is important that we clearly define what a diversified portfolio is and why it can be beneficial for investors. As always, we aim to create an environment where you can feel confident that we are doing all we can to provide you with the most knowledge we can share! What Makes it Diversification? First, we need to assign a simple definition for what a diversified portfolio is. A diversified portfolio is when an investor decides to invest in multiple types of funds and assets. For...

Triple Net Leases: Inflation Hedges?

If you have been familiar with our work and real estate investing, then you have most likely come across the term “triple net lease”. We have used it a few times in some of our articles on this blog, and if you invest with us, then you have heard about our tenant’s triple net leases (or, NNNs) in our monthly and quarterly updates. NNNs are not the only types of leases utilized in commercial real estate, but for our business and many others, they are the most prevalent. In order to make sure that we are keeping up our promise of...

Liquid vs. Illiquid Investments: What to Know

As you may know, when you invest in anything, your assets may have liquidity. Or, they may be illiquid. Either way, it means different things for you and your investment. No matter what your level of investing is, it is important to understand the difference between liquid and illiquid investments. Having a liquid investment means that it can easily be acquired or sold. Liquid investments tend to be traded in high volume, and they are seen as being relatively easy to buy/sell without creating large fluctuations in price. Some examples of liquid investments are publicly traded stocks, some exchange-traded funds, and...

Second-Level Thinking: How To Think About Investing

If you have been investing for a long time, or if you have been around investment firms, then you may have heard of this idea that there are “levels” to the way we think, especially in investing. To begin, first-level thinking is considered the superficial, simplistic way that we think of things. More often then not, first-level thinking is based on the first opinion someone may have about a certain topic. For example, a first-level thought may be something along the lines of “My investments are doing well, so I should buy more”. Second-level thinking brings in the idea that if what...