The Split – 2 Profitable ways to Share in a Project’s Return

When looking at different multifamily opportunities, you need to be aware of the split, or what’s called the promote. In its simplest form, this is the distribution of profits that go to the syndicator/operator, versus the investor (limited partner). An offering will generally specify the percentage of profits and where they go. It is common for 10% to 30% of profits to go to the operator, with the remaining going to the investors, subject to various conditions. Though each deal may be different, the operator usually tries to find the right balance between their abilities and the needs of their investors.

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5 Tips for Preserving and Increasing Your Net Worth

I have a friend who has a little 15 years of investing experience, and has some very sage advice for those of us who wish to follow in his footsteps. His name is Manuel. (This may or may not have been changed to protect his anonymity.) He is a very disciplined investor, buying and holding many single-family homes and smaller properties, and now prefers to invest in multifamily syndications.

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Passive vs. Active Investments

I don’t know about you, but I love ice cream and gelato. There are so many flavors, and they are all so tasty! In the summer when it’s hot, a mango or lemon gelato is what I want. But as the autumn weather cools things down and the leaves begin to drop, a more savory ice cream flavor such as chocolate caramel swirl is more up my alley.

Investing can be like that, too – there are so many different choices that it can make your head spin, and your mood or station in life matters when making a selection. So, how do you decide?

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Tax Benefits of Multifamily Syndication

In addition to cash flow, capital preservation, and steady growth prospects, many passive investors find themselves gravitating to real estate syndication for another reason – the tax benefits! There are a number of powerful tax benefits that come with investing in real estate; it’s likely the number one benefit that we’ve noticed are the massive deductions.

Some of the most common deductions are:

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Passive Investing in Real Estate: Capital Gains, Cash Flow, and Speculation

As a kid, I used to love balloons. I’d see them at the grocery store or at a fair, marveling at the colors and designs. If my parents bought me one, I’d do my best to hold tight so the balloon wouldn’t get away. (Side note: Is there a more helpless feeling as a kid then when a balloon slips from your hand and floats away?) Once safely inside the house, playtime began! No matter how I batted it down, I couldn’t keep a good balloon from going up, up, up. Many investors think that markets work this way; they blindly place their hard-earned dollars into investments that they don’t truly understand while ignoring the risks because the stock market “always goes up.” But balloons will eventually come down, and even the best markets can run out of energy. Educating yourself on different investment styles and risk evaluation can help you to build a portfolio that doesn’t run out of helium.

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Should you invest in Apartment Syndications or Single-Family Homes?

There are many different ways to invest in real estate, and one of the most common is buying single family houses (SFHs) to hold as rental property. Many people who already have full-time jobs are lured in by the idea of passively owning rental homes and the promise of “mailbox money.” To make it even more passive, you can choose to use using a turnkey provider to handle the transaction from start to finish, complete with a property manager to take care of problems. It’s a win-win, right?

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Start Here

So… You want to invest in real estate but your time is limited and you do not want to have to manage tenants, toilets and trash.

Many of us know that investing in multi-family real estate can be much safer than investing in the volatile stock market. We want to preserve and even grow our wealth, retirement fund or our nest egg.

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The Top 17 Commercial Real Estate Terms That You Need to Know NOW

Learn about these commercial real estate terms: Average Annual Return (AAR), Capitalization (Cap) Rate, Cash-on-Cash Return (CoC), Cost Segregation Study, Depreciation, Due Diligence, Forced Appreciation, Hurdle, Income Statement (T-12), Internal Rate of Return (IRR), Net Operating Income (NOI), Offering Memorandum, Preferred Return, Rent Roll, Schedule K-1, Value-Add Property

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Accredited Versus Sophisticated Investor – Which Are You?

This is the single-most asked question posed by syndicators to their investors, because it is required by law in the United States. Syndicators have to follow certain regulations set forth by the SEC in order to operate legally. There are 2 main categories of private placements, 506(b) and 506(c). Within these are certain restrictions affecting the kind of investors they can accept. This article will help explain the difference between an accredited versus sophisticated investor.

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8 Awesome Ways to Find Syndicators This Week

Let’s find syndicators… There are so many different things to invest in. But a good number of investors who hold well-paying careers or operate successful businesses, pick being able to invest with multifamily syndicators. If you are one of those people, you are likely to have already found some sponsors, or you need help connecting with some. I hope to help you with the latter.

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