The difference between a sound real estate investment decision and a potential mistake can often come down to the questions you ask before you invest.
The private real estate market offers unique opportunities for high-net-worth investors seeking passive income and tax-advantaged diversification. At Anchor1031, we understand that while marketing materials often highlight potential returns, the true value and risk lie in the underlying property, its market, and its financial fundamentals.
Our mission is to empower you to navigate this complex landscape with confidence. Drawing on our experience across over $1.2B worth of real estate investments and our risk-first philosophy, this guide translates industry jargon into actionable steps. We will equip you with a framework to rigorously evaluate real estate syndication deals, providing context for the metrics professionals use, and shifting your perspective to prioritize risk awareness and potential long-term value inherent in the asset.
"Successful investing in private real estate is not about chasing the highest potential returns, but about understanding the risks you're taking on. All investments have risk, but we help you cut through glossy narratives to anchor your decisions in the reality of real estate."
As private markets have become more accessible to individual investors, the doors have opened but the playing field hasn't leveled. Individual investors are often making decisions in markets where institutional players have been operating for decades. Individuals typically only see what sponsor groups choose to provide, while sponsors have access to institutional-quality research, proprietary market data, comprehensive deal flow information, deep broker networks, and sometimes whole floors of analysts. This creates an imbalance between what sponsors know and what individual investors actually focus on.
The good news: knowledge is the one advantage you can build. Before investing, focus on the details that matter: the property's actual financials, third-party reports, and market conditions—not just the highlights in the offering materials. Focus on developing depth in specific asset classes and markets rather than trying to understand everything. And be honest about your limitations: if you don't understand a market or strategy, that's a reason to pass, not a reason to trust someone else's optimism. Most importantly, look beyond the legal structure of the deal (DST, TIC, Limited Partnership, REIT) and focus on what actually drives results: the physical property, its market dynamics, and its operational realities.
This guide focuses on evaluating the property itself. For a complete due diligence process, pair it with our 20 Questions to Ask a Sponsor guide and our Investment Structure Guide.
What You'll Learn in This Guide
- 20 critical questions to evaluate any property's physical and operational performance
- Red flags to watch for that could jeopardize a business plan and lead to loss of capital
- Actionable takeaways for each question so you know exactly what to ask sponsors
- Framework developed from $1.2B+ of real estate syndication experience
Physical Property & Condition
Questions 1-5 evaluate the property's physical condition, capital requirements, rents, occupancy, and tenant concentration
1What do third-party reports reveal? (PCA, Phase I ESA, Survey, Zoning)
Why It Matters
These are independent reports from experts, not the seller's marketing materials. They uncover hidden problems like structural damage, environmental contamination (toxic waste), property line disputes, or zoning violations that could cost a lot to fix or limit how the property can be used, directly impacting your investment's value and future income.
What to Verify
- Always insist on seeing the full Property Condition Assessment (PCA) and Phase I Environmental Site Assessment (ESA)
- These reports should clearly state that the property is legally used and meets all rules, or provide a detailed plan and budget for how any issues will be fixed
Red Flags to Watch For
- !Any mention of "Immediate Repairs" needed
- !"Recognized Environmental Conditions (RECs)" (like contaminated soil or groundwater)
- !The property not meeting current zoning rules
- !Construction done without proper permits
2Capital Expenditures (CapEx): What immediate and recurring CapEx is required?
Why It Matters
Properties need ongoing investment to stay in good shape. This includes big-ticket items like roofs, exterior walls (facades), parking lots, elevators, and updating interiors. If the budget for these isn't realistic or enough money isn't set aside, it can eat into your expected cash flow or even require you to put in more money later (a "capital call").
What to Verify
- Ask for a detailed plan for all major capital projects over the course of the expected business plan
- This plan should include specific costs and actual bids from contractors
- Make sure the amount of money set aside for these repairs (reserves) seems realistic compared to the property's actual needs
Red Flags to Watch For
- !A vague plan for future repairs without clear dates or costs
- !Major components like roofs or heating/cooling systems nearing the end of their useful life
- !A large amount of overdue maintenance without enough money reserved to cover it
- !Plans to add value (like renovations) that don't clearly show how those improvements will increase the property's income
3In-Place Rents vs. Market Rents: How do current in-place rents compare to market rates, and what is the strategy for future rent growth?
Why It Matters
If the current tenants are paying rents significantly higher than what similar properties in the area are charging, it means there's little room to increase income in the future. This limits how much the property's Net Operating Income (NOI), its income before debt payments, can grow, which is key to a profitable exit. You want a property with room for rent growth.
What to Verify
- Get a clear comparison of the property's current rents against what the market is actually paying for similar spaces
- Ask for a detailed explanation of why current rents are what they are, and what the concrete plan is to either increase rents or keep them stable in the future
Red Flags to Watch For
- !Current rents that are noticeably higher than what comparable properties are getting
- !Optimistic projections for future rent growth that aren't backed by solid market data or a clear plan to achieve them
4Economic Occupancy & Trends: What is the true economic occupancy, including concessions, delinquency, and bad debt, and what are the historical trends?
Why It Matters
"Physical occupancy" (how many units are filled) can be misleading. "Economic occupancy" is the real measure because it accounts for rent discounts (concessions), unpaid rent (delinquency), and rent that will never be collected (bad debt). What's left is the actual money that pays your distributions.
What to Verify
- Look beyond the simple occupancy rate and request trailing 12-month (T12) and trailing 3-month (T3) reports to see both physical and economic occupancy
- Analyze trends in unpaid rent, tenant move-ins/outs, and how many tenants are renewing their leases
- Compare actual rental income to what was projected
Red Flags to Watch For
- !High physical occupancy that's only achieved by offering big rent discounts
- !An increasing amount of unpaid rent
- !A significant number of tenants who aren't paying
- !Unusually high "other income" sources that might be temporarily boosting the numbers
5Tenant Concentration Risk: Does the property's income heavily rely on a single tenant or a specific industry sector?
Why It Matters
If one tenant or one type of business generates most of the property's income, your investment is very vulnerable. If that tenant leaves, struggles financially, or if that industry faces a downturn, your income could drop dramatically. This is particularly risky in single-tenant properties (like many NNN leases) and properties with debt.
What to Verify
- Examine the breakdown of tenants by the amount of space they occupy
- Understand the likelihood of tenants renewing their leases, how much demand there is from other potential tenants, and if other types of businesses could easily use the space
- For commercial properties, try to get financial statements (audited if possible) from major tenants to assess their stability
Red Flags to Watch For
- !Tenants in niche industries with uncertain financial health
- !Spaces designed for only one specific type of business
- !If a major brand name is on the lease but it's actually backed by a smaller local franchisee rather than the large corporation itself
- !Declining sales trends of key tenants
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Lease & Income Analysis
Questions 6-10 examine lease structures, renewal strategies, expense reimbursements, operating expenses, and property taxes
6Lease Audit & WALT: What does a thorough lease audit reveal about critical lease clauses, and what is the Weighted Average Lease Term (WALT)?
Why It Matters
The lease agreement is the backbone of the deal. Hidden clauses like "co-tenancy" (where one tenant can reduce rent if another leaves), early termination rights for tenants, or unclear definitions of who pays for what can significantly alter your cash flow. The Weighted Average Lease Term (WALT) tells you how long, on average, tenants are committed to staying. A short WALT means more frequent (and expensive) periods of finding new tenants and renegotiating leases.
What to Verify
- Request a third-party audit of all leases for an objective review of the terms
- You should also see "executed estoppels" at closing, which are legal documents confirming the current lease terms
- Make sure you understand all options for renewal, rent increases, and how expenses are reimbursed
Red Flags to Watch For
- !Clauses that allow tenants to end their lease early
- !A WALT that is very short
- !Language in the lease that is vague about who is responsible for expenses or repairs
- !Unusually high costs for tenant improvements (TI) or leasing commissions (LC) when leases renew
7Lease Renewal Strategy & Costs: What is the specific strategy and budget for renewing or replacing leases, including tenant improvement allowances and leasing commissions?
Why It Matters
Replacing or renewing tenants is a costly event. Money needs to be spent on preparing the space for a new tenant (Tenant Improvements or TI), offering rent reductions (concessions), marketing, and paying real estate brokers. If the budget for these costs is too low or based on unrealistic assumptions, it can reduce your cash flow or require additional investment (capital calls).
What to Verify
- Review the company's historical success rates for renewing leases
- Ask for a detailed budget that quantifies the projected costs for renewing or replacing tenants, including tenant improvements, rent concessions, marketing expenses, and leasing broker fees. It should account for how long the property might be vacant (downtime) during this process
Red Flags to Watch For
- !Assumptions about tenant renewals that seem too optimistic without historical data
- !A budget for tenant improvements that appears very low
- !Unrealistic estimates for how long a space will sit vacant between tenants
- !Statements like "the tenant will do anything to stay" without a concrete plan
8Expense Reimbursements & Reconciliations: How do expense reimbursements actually work, and are reconciliations current?
Why It Matters
The type of lease (e.g., "net," "base-year," or "gross") determines how many operating expenses the tenant pays versus the landlord. This directly impacts the stability and predictability of your income. If the accounting for these shared expenses is messy or delayed, it can result in landlords paying bills that tenants should have covered and then struggling to collect those amounts later.
What to Verify
- Clearly understand how each tenant's expenses are reimbursed
- Review the historical percentage of expenses that the landlord has successfully recovered from tenants
- Ask about the timeliness and success rate of collecting on these reconciliations
- For "NNN" (triple-net) leases, ensure it's truly an "Absolute NNN" where the tenant pays all property expenses, and get the detailed breakdown of landlord vs. tenant responsibilities
Red Flags to Watch For
- !Vague lease language about who is responsible for which expenses
- !A history of the landlord only recovering a small portion of reimbursable expenses
- !Expense reconciliations (the process of settling up shared costs) that are consistently late or uncollected
9True Operating Expenses (Normalized T12): What are the property's true operating expenses, after normalizing for one-time credits, capitalized expenses, and other costs?
Why It Matters
The property's financial statements can sometimes be presented in a way that temporarily inflates cash flow. This might involve one-time income boosts, classifying regular expenses as long-term capital investments, or paying out investor distributions from reserve funds rather than actual rental income. This can make the property look more profitable than it truly is, leading to an unsustainable yield that drops significantly later.
What to Verify
- Request a "normalized T12" (trailing 12 months) financial statement, which adjusts for these one-time or unusual items to show the property's true, ongoing operating expenses and income
- Request a 10-year projection of Net Operating Income (NOI)
- Clarify if distributions come from rental income or reserves, and understand when the property's loan begins to amortize (pay down principal), as this can reduce future cash distributions
Red Flags to Watch For
- !Unusually low staffing costs for the property
- !Regular operating expenses being treated as "capitalized" (meaning they're added to the property's value rather than expensed)
- !Any sponsor fees that are deferred until the property is sold
- !Distributions being paid from emergency cash reserves instead of actual rental income
- !Temporary tax credits/sales concessions that inflate current income
10Property Tax Outlook: What's the property tax outlook (current, post-sale reassessment, appeal path)?
Why It Matters
Property taxes are a major operating expense. In many areas, when a property sells, its value is reassessed for tax purposes based on the new, higher sale price. This can dramatically increase annual property taxes, potentially wiping out the projected profits or even making the property unprofitable if not properly accounted for in the initial financial projections.
What to Verify
- Understand the specific property tax rules for the jurisdiction where the property is located
- Ask for a model that shows the projected property taxes after the sale, based on the anticipated purchase price
- Inquire about the strategy and timeline for appealing any high assessments, and review the historical assessed value versus the market value of the property
Red Flags to Watch For
- !Assuming property tax rates will remain unchanged
- !Ignoring the possibility of a tax reassessment after the sale
- !The absence of a professional tax consultant involved in the underwriting process
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Property Risk & Compliance
Questions 11-15 address insurance, environmental concerns, zoning compliance, easements, and leasing pipeline
11Insurance Realities & Costs: What are the current insurance coverage, exclusions, deductible structure, and premium trajectory for the property?
Why It Matters
Insurance costs have risen sharply in many markets and can be a significant operating expense. Key exclusions (what the insurance doesn't cover), like wind, flood, or earthquake damage, can leave the investment exposed to massive, uninsured losses. High deductibles also mean you'll pay more out of pocket for smaller claims.
What to Verify
- Thoroughly review the current insurance policy details
- Understand what is covered and, more importantly, what is excluded
- Pay close attention to the deductible amounts and any potential increases
- Request a forecast of future insurance premiums, as these can impact long-term profitability
Red Flags to Watch For
- !Basic, minimal insurance coverage that doesn't adequately protect against common risks in the property's location
- !A history of large or frequent insurance claims
- !The insurance company refusing to renew the policy
- !The property being in a FEMA flood zone or having a high Probable Maximum Loss (PML) without strong mitigation measures in place
12Environmental & Hazardous Materials: What are the property's environmental exposures and associated Operations & Maintenance (O&M) requirements?
Why It Matters
Past uses of a property (e.g., gas station, dry cleaner) or the presence of hazardous materials (like asbestos, lead paint, or underground storage tanks) can lead to significant cleanup costs, legal liabilities, or restrictions on how the property can be used. These "environmental exposures" can drastically reduce the property's value and appeal to future buyers.
What to Verify
- Review the Phase I Environmental Site Assessment conclusions
- If any potential issues were found, ask for any Phase II recommendations (which involve deeper testing)
- Obtain "Closure" or "No Further Action" letters from regulatory bodies if environmental issues were previously addressed
- Request all Operations & Maintenance (O&M) plans and budgets related to managing materials like asbestos or lead paint
Red Flags to Watch For
- !A "Recognized Environmental Condition (REC)" identified in an environmental report without a clear, funded plan to address it (Response Action Plan, RAP)
- !Historical records of underground storage tanks (USTs) without proof they were properly closed
- !Asbestos-containing materials (ACM) or lead-based paint (LBP) in poor condition
- !The property being next to a known polluter like a dry-cleaner or gas station
13Zoning & Code Conformance: Does the asset fully conform to current zoning, building codes, and use constraints?
Why It Matters
Zoning laws dictate how a property can be used, its height, parking requirements, and setbacks from property lines. If a property doesn't fully comply with these rules, it can limit your ability to expand, rebuild after damage, or change its use in the future, directly impacting its value and resale potential.
What to Verify
- Request a formal zoning compliance letter from the local municipality
- Review any parking studies
- Understand the rights to rebuild or repair the property after damage
- Examine all recorded easements and Reciprocal Easement Agreements (REAs) and their associated costs or limitations, as these can affect how the property is used and managed
Red Flags to Watch For
- !The property having fewer parking spaces than required
- !Exceeding allowable building height or density (Floor Area Ratio, FAR)
- !Violations of setback rules
- !A "conditional use" permit that might be difficult to transfer or renew
- !Valuable "entitlements" (development rights) that aren't transferable to a new owner
14Easements & Off-Site Dependencies: What easements, Reciprocal Easement Agreements (REAs), or other off-site dependencies affect operations or costs?
Why It Matters
Easements are rights for others to use a portion of your property (e.g., for utilities, shared access roads). Reciprocal Easement Agreements (REAs) are common in shopping centers, outlining shared responsibilities for common areas, signage, and utilities. These can create ongoing costs, operational headaches, or legal liabilities, especially if the terms are unfavorable or trigger unexpected costs.
What to Verify
- Conduct a complete title review to identify all easements and REAs
- Thoroughly understand the abstracts (summaries) of these agreements, whether they can be assigned (transferred) to a new owner, how costs are shared, and any requirements for consent from other parties before making changes
Red Flags to Watch For
- !REAs that are perpetual (never end) or are highly unfavorable to the property owner
- !Clauses requiring consent from other parties for property changes
- !"Co-tenancy hooks" in an REA that could allow a major tenant to reduce or stop paying rent if another key tenant leaves, significantly impacting property income
15Leasing Pipeline & Momentum: What is the current leasing pipeline (Letters of Intent, proposals, tour velocity), and what is the property's leasing momentum?
Why It Matters
The property's future income (Net Operating Income, NOI) depends on successfully leasing vacant spaces and renewing existing tenants. A strong "leasing pipeline" (potential tenants showing interest) and good "momentum" (active tours, firm offers) indicate healthy market demand and effective property management. Without this, future income projections are just hopes.
What to Verify
- Inquire about the number of active tours the property is receiving each week
- Ask for any Letters of Intent (LOIs) or detailed proposals, including their specific terms
- Understand what rent concessions (discounts) might be needed to attract or keep tenants, and how the property compares to competitors in securing new leases
Red Flags to Watch For
- !Income projections that rely on filling vacant space without any actual Letters of Intent (LOIs) or concrete proposals from potential tenants
- !An outdated list of interested parties
- !Vague "interest" from brokers that doesn't translate into action
- !Signs that brokers are losing enthusiasm for the property
- !A lack of competitive offers for vacant spaces
Market & Exit Analysis
Questions 16-20 evaluate market supply/demand, property-specific performance, tenant health, exit conditions, and competitive advantage
16Market Supply & Demand: What is the competitive supply pipeline and barrier-to-entry profile for this specific market and submarket?
Why It Matters
Many similar properties being built or planned in the area can flood the market, putting downward pressure on rents and occupancy for your property. Conversely, high "barriers to entry" (e.g., strict zoning, limited available land) protect existing properties by limiting new competition, preserving pricing power and long-term value.
What to Verify
- Research the number of under-construction or approved (entitled) units/square footage in the specific submarket
- Understand the historical rate at which new spaces are leased up (absorption rates)
- Investigate how difficult it is to get new developments approved (entitlement difficulty)
- Compare the cost of new development to the property's current price to gauge its competitive position
Red Flags to Watch For
- !Multiple comparable properties scheduled to be completed within the next 12–24 months
- !Zoning laws that make it easy to build new projects
- !A large amount of land readily available for development
- !An ongoing "concessions arms race" where landlords are constantly offering discounts to attract tenants due to oversupply
17Multifamily Unit-Level Performance: For multifamily, what is the unit-level story (turn costs, renovation scope, premiums, delinquency)?
Why It Matters
In apartment buildings, efficient "unit turns" (preparing a vacant unit for a new tenant) and smart renovations that capture higher rents ("premiums") are crucial for driving value. High tenant turnover costs, overly ambitious renovation plans, or a rising number of unpaid rents ("delinquency") can severely impact the financial projections and overall cash flow.
What to Verify
- Review the typical timeline for turning over vacant units
- Compare the actual rent premiums achieved after renovations to what was projected
- Analyze tenant delinquency and the frequency of evictions. This shows how effectively the property is being managed on the ground
Red Flags to Watch For
- !High costs to turn over units for new tenants
- !Units sitting vacant for extended periods during renovations
- !A noticeable increase in unpaid rents
- !Substantial rent concessions to compete with newly constructed buildings
18Commercial/Retail Tenant Business Health: For commercial/retail, what's the tenant credit and business health (store-level sales, coverage ratios)?
Why It Matters
For commercial properties, the financial health of the tenants directly determines whether they can pay rent. A corporate name (like "Walgreens") on the lease doesn't always mean the entire corporation guarantees the rent; it might be a smaller franchisee with weaker financials. You need to understand if the actual business operating in the space is strong enough to pay reliably.
What to Verify
- Try to obtain financial statements (audited if possible) directly from the tenant or the operating business
- Review any sales reporting rights you have as a landlord
- Understand the Debt Service Coverage Ratio (DSCR) and the precise structure of any rent guarantees
- Look for opportunities for "percentage rent" (where you get a cut of their sales) if it's a retail property, which could offer upside
Red Flags to Watch For
- !A corporate name on the lease without a clear national corporate guarantee
- !Declining sales trends at the specific store location
- !A Debt Service Coverage Ratio (DSCR) below 1.5x (meaning the business's income barely covers its debt payments)
- !A modified gross lease with very limited rent increases over time, making your income less resistant to inflation
19Anticipated Market Exit Conditions & Liquidity: What are the realistic market conditions expected at the end of the projected hold period, including potential re-tenanting costs and the property's liquidity profile?
Why It Matters
Real estate is a long-term investment. You need to think about what the demand for your property will look like when you want to sell. Overly optimistic assumptions about future market appreciation, underestimating the costs to find new tenants, or investing in a property in a less desirable market can make it very difficult to sell an asset profitably.
What to Verify
- Analyze historical sales data for similar assets in the market
- Understand the typical amount of time a property sits vacant while new tenants are being sought
- Get realistic estimates for future re-leasing costs (tenant improvements, leasing commissions) that might be incurred when the property is eventually sold
Red Flags to Watch For
- !Financial projections that assume significant market value increases without solid historical or forecasted data
- !Underestimating the costs (tenant improvements, commissions) required to prepare the property for new tenants at sale
- !A property located in a market with few potential buyers or a slow sales history
20Asset-Specific Value Drivers & Competitive Advantage: What are the unique value drivers of this specific asset (e.g., location, physical characteristics, operational efficiencies) that provide a competitive advantage in its market?
Why It Matters
Every property has characteristics that make it more or less attractive. Identifying what truly makes this specific property stand out (an unbeatable location, unique physical features, or proven operational advantages) helps you understand its long-term value creation potential and how well it can withstand market ups and downs. Don't just rely on general market trends.
What to Verify
- Ask for specific, tangible examples of how the property's location (corner lot, high traffic), physical attributes (unique architecture, highly functional layout), tenant mix (diverse, credit-worthy tenants), or operational setup (energy-efficient systems, strong local management) give it an edge over the competition
Red Flags to Watch For
- !Descriptions of the property's value that are generic and could apply to almost any asset
- !Claims of competitive advantage that are vague or not backed by specific features
- !An inability to clearly explain what makes this property distinct from its competitors
How Real Estate Due Diligence Works on the Anchor1031 Platform
All properties on the Anchor1031 platform go through a formal real estate due diligence process. Every syndication and DST investment is evaluated by our designated broker-dealer using institutional-quality due diligence standards before listing on the platform.
Property Due Diligence
- Review of third-party reports regarding the project, including environmental issues, zoning and property condition
- Evaluation of the specific location, looking for an understanding of key economic drivers and unique local market attributes
- Review of historical sales values and leasing comps of comparable properties
Sponsor Due Diligence
- Assess the manager's skill and experience to successfully complete the business plan
- Detailed Background and Criminal checks
- Review of the Sponsor's track record executing similar business plans
- Depth and breadth of team
- Evaluation of current and realized projects, public record searches, and third-party bad actor checks
Business Plan Due Diligence
- Key business assumptions
- Proof of debt terms
- Management fees and compensation
- Planned exit strategy
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Frequently Asked Questions About Real Estate Due Diligence
What is real estate syndication due diligence?
Real estate syndication due diligence is the comprehensive process of evaluating a property investment opportunity before committing capital. It includes analyzing the property's physical condition, lease structures, market dynamics, environmental risks, and financial projections to identify risks and verify the investment thesis.
What are the most important third-party reports to review?
The most critical reports include the Property Condition Assessment (PCA) which reveals structural and mechanical issues, the Phase I Environmental Site Assessment (ESA) which identifies potential contamination, a current survey showing property boundaries and easements, and a zoning compliance report. These independent reports reveal hidden problems that marketing materials won't show you.
What is economic occupancy and why is it different from physical occupancy?
Physical occupancy simply measures how many units are filled, but economic occupancy is the real measure of income. Economic occupancy accounts for rent discounts (concessions), unpaid rent (delinquency), and rent that will never be collected (bad debt). A property can have 95% physical occupancy but much lower economic occupancy if tenants aren't paying or are receiving significant discounts.
What is WALT and why does it matter?
WALT stands for Weighted Average Lease Term, which tells you how long, on average, tenants are committed to staying. A short WALT means more frequent (and expensive) periods of finding new tenants and renegotiating leases, creating more risk. A longer WALT provides more stable, predictable income.
How can property taxes impact my investment returns?
Property taxes are a major operating expense. In many areas, when a property sells, its value is reassessed for tax purposes based on the new, higher sale price. This can dramatically increase annual property taxes, potentially wiping out projected profits or even making the property unprofitable if not properly accounted for in the initial financial projections.
What should I look for regarding insurance coverage?
Review what is covered and, more importantly, what is excluded. Key exclusions like wind, flood, or earthquake damage can leave the investment exposed to massive, uninsured losses. Also pay attention to deductible amounts, premium trends, and whether the property is in a FEMA flood zone or has a high Probable Maximum Loss (PML).
What are barriers to entry and why do they matter?
Barriers to entry are factors that make it difficult to build new competing properties, such as strict zoning, limited available land, or high construction costs. High barriers protect existing properties by limiting new competition, preserving pricing power and long-term value. Markets with low barriers can quickly become oversupplied, hurting rents and occupancy.
How do I evaluate tenant concentration risk?
Look at the breakdown of tenants by the amount of space they occupy and income they generate. If one tenant or one type of business generates most of the property's income, your investment is vulnerable. Also verify whether corporate names on leases are backed by the actual corporation or just a smaller local franchisee with weaker financials.
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Important Risk Disclosures
- Investments in real estate are speculative, highly illiquid, and involve substantial risk. There can be no assurance that any investor will not suffer significant losses, and a loss of part or all of the principal value may occur. You should not invest unless you can readily bear the consequences of potential losses, including the risk of total loss of capital.
- All information about any deal is qualified in its entirety by the issuer's Offering Documents that must be reviewed prior to investing, including risk factors, investment objectives, business plan, charges, expenses, and other important information.
- Tax laws, regulations, and IRS guidance regarding 1031 exchanges are complex and subject to change. Information herein may include forward-looking statements, hypothetical information, calculations, or financial estimates that are inherently uncertain. Past performance is not indicative of future results. The information presented may not reflect the most current legal developments, regulatory changes, or interpretations.
- Internal Revenue Code Section 1031 ("Section 1031") contains complex tax concepts, and certain tax consequences may vary depending on the individual circumstances. Individual circumstances vary significantly, and strategies that may be appropriate for one investor may not be suitable for another. Before making any investment decisions or implementing any 1031 exchange strategies, you should consult with and rely on your own qualified legal, tax, and financial professionals who can provide advice tailored to your specific circumstances.