All posts in Capital

3 Jun 2016

How to Identify Fraudulent Checks

By: Seth Gilkes, CPA, CCIM

Although checks are used and accepted far less than they used to, even their limited use provides criminals the opportunity to pay for things or obtain cash using fraudulent or counterfeit checks.

Computer technology enables criminals to reproduce authentic looking checks. Other times, a criminal may obtain real checks and alter them to avoid being caught once a bank tries to process it. If you cash or deposit a phony check, you’ll likely be on the hook for the amount.

Warnings signs of phony checks include:

12 Apr 2016

What Low Cap Rates on CRE Reveal About the Current Market

Cap RatesBy: John Flint, Executive Vice President, Asset Management and Strategic Initiatives

Capitalization rates, cap rates for short, are one of the most critical factors when assessing commercial real estate.

The cap rate is the ratio of Net Operating Income (NOI) to asset value. For example a property valued at $1 million that generates an NOI of $100,000 has a 10 percent cap rate.

The ratio is used to measure the expected yields on investment property.

Real estate is no different than other types of investments in that the higher the risk, the higher the return an investor expects to earn. Risk factors include creditworthiness of the tenants, location, and the dynamics of the local real estate market.

In general, lower cap rates indicate less risk on an investment (evidenced by increased demand for that investment) while higher cap rates typically signify a property carries higher risk.