Compare
The CRE "X vs Y" you actually want answered.
Honest side-by-side comparisons of the structures, leases, and financing options CRE investors actually choose between. Tables, verdicts, and the FAQ we wish more CRE publications would write.
1031 structures
5- 1031 structures Comparison
DST vs TIC
A DST (Delaware Statutory Trust) and a TIC (Tenants-in-Common) are both fractional ownership structures that qualify for 1031 exchanges, but a DST is fully passive with a single trust decision-maker while a TIC requires unanimous co-owner consent for major decisions.
Read the comparison - 1031 structures Comparison
Forward vs Reverse 1031 Exchange
In a forward 1031 exchange, you sell the relinquished property first and then buy the replacement within 180 days; in a reverse 1031 exchange, you buy the replacement first (parked with an Exchange Accommodation Titleholder) and then sell the relinquished property within 180 days.
Read the comparison - 1031 structures Comparison
1031 Exchange vs 721 UPREIT
A 1031 exchange defers capital gains by swapping real estate for like-kind real estate; a 721 UPREIT contribution defers capital gains by contributing real estate (often a DST interest) to a REIT's operating partnership in exchange for OP units, which can later be converted to REIT shares.
Read the comparison - 1031 structures Comparison
DST vs NNN
A DST (Delaware Statutory Trust) is a fully passive fractional 1031 vehicle where a sponsor controls everything and you collect distributions; a direct NNN purchase is single-tenant net-leased real estate that you own outright with full control of the deal, the tenant relationship, and the eventual exit.
Read the comparison - 1031 structures Comparison
NNN vs DST: Where Should $500K-$2M of 1031 Equity Go?
With $500K-$2M of 1031 equity, direct NNN buys you 100% of one credit-tenant single-tenant building with full control and 1-2% in deal fees, while a DST buys you a passive minority interest in a sponsor-controlled portfolio at a 10-17% all-in fee load.
Read the comparison
Lease structures
4- Lease structures Comparison
NNN vs Gross Lease
A NNN (triple net) lease passes property taxes, insurance, and common area maintenance to the tenant on top of base rent, while a gross lease charges the tenant a single all-inclusive rent with the landlord paying all operating expenses.
Read the comparison - Lease structures Comparison
Absolute Net vs Triple Net
A classic triple net (NNN) lease passes taxes, insurance, and CAM to the tenant but leaves the landlord responsible for roof, structure, and some capex; an absolute net lease pushes every expense — including roof, structure, and casualty — to the tenant, making it the most landlord-favorable lease structure.
Read the comparison - Lease structures Comparison
NNN vs Modified Gross Lease
A NNN (triple net) lease passes property taxes, insurance, and common area maintenance to the tenant on top of base rent; a modified gross lease covers operating expenses up to a base year's amount, with only increases above that base year passed through to the tenant.
Read the comparison - Lease structures Comparison
Ground Lease vs NNN
In a ground lease, you own the dirt and the tenant builds, owns, operates, and pays for the improvements (which revert to you at lease end); in a standard NNN, you own both the land and the building, and the tenant pays rent plus reimburses operating expenses on a typically 10-25 year lease.
Read the comparison
Financing
4- Financing Comparison
Bridge Loan vs Agency Debt
A bridge loan is short-term, higher-rate, interest-only financing used for transitional multifamily and CRE assets before stabilization; agency debt (Fannie Mae / Freddie Mac) is long-term, fixed-rate, non-recourse financing for stabilized multifamily with favorable proceeds and terms.
Read the comparison - Financing Comparison
CMBS vs Bank Loan
A CMBS loan is commercial real estate debt that is securitized into bonds and sold to investors, offering long-term fixed-rate non-recourse financing with rigid covenants; a bank loan is a portfolio-held commercial mortgage originated by a bank, with more flexibility, potential recourse, and typically shorter terms.
Read the comparison - Financing Comparison
Agency Debt vs Life Company Debt
Agency debt (Fannie Mae, Freddie Mac) finances multifamily at scale with standardized non-recourse terms and competitive rates; life insurance company debt finances commercial and multifamily with more flexibility, lower leverage, and relationship-driven pricing.
Read the comparison - Financing Comparison
SBA 504 vs SBA 7(a) for Commercial Real Estate
The SBA 504 loan is a long-term fixed-rate commercial real estate loan structured as a bank first + SBA-backed second (typically 50% bank, 40% CDC/SBA, 10% borrower equity); the SBA 7(a) loan is a general-purpose SBA-guaranteed loan that can finance commercial real estate at up to 90% LTV with more flexibility but typically at floating rates.
Read the comparison
Investment structures
2- Investment structures Comparison
REIT vs Direct Ownership
A REIT (Real Estate Investment Trust) is a security representing fractional ownership of a diversified real estate portfolio with high liquidity and no operational control; direct ownership of real estate delivers illiquid asset-level control with full operational responsibility and 1031-eligibility for tax-deferred exchanges.
Read the comparison - Investment structures Comparison
Direct CRE Ownership vs Syndication
Direct ownership means holding title to commercial real estate yourself (often via an LLC) with full operational control and tax benefits; a syndication is a pooled investment where you're a limited partner in a sponsor-run deal with passive ownership and no day-to-day involvement.
Read the comparison
Returns & metrics
2- Returns & metrics Comparison
Cap Rate vs Cash-on-Cash Return
Cap rate measures a property's unlevered year-one yield (NOI ÷ purchase price); cash-on-cash return measures the levered year-one yield on your equity (annual cash flow after debt service ÷ total cash invested).
Read the comparison - Returns & metrics Comparison
IRR vs Equity Multiple
IRR is the annualized time-weighted rate of return on an investment, accounting for the timing of all cash flows; equity multiple is simply total distributions divided by total equity invested — a time-unaware measure of total return.
Read the comparison
Tax strategy
2- Tax strategy Comparison
Cost Segregation vs Straight-Line Depreciation
Straight-line depreciation spreads a property's depreciable basis evenly over 27.5 years (residential) or 39 years (commercial); cost segregation reclassifies portions of the basis into shorter-life categories (5, 7, and 15 years) to accelerate depreciation and increase near-term tax shelter.
Read the comparison - Tax strategy Comparison
1031 Exchange vs Just Paying the Tax
A 1031 exchange defers federal capital gains, depreciation recapture, NIIT, and state tax by rolling sale proceeds into like-kind real estate within strict 45/180-day deadlines; paying the tax means you write the IRS a check, keep the after-tax cash, and walk away free to invest in anything (or nothing).
Read the comparison
The Upleg Weekly
More comparisons drop every week in the briefing.
One weekly email. Snarky CRE takes, the occasional cap rate, unsubscribe anytime.