As you gain experience looking at multifamily syndication business plans, you will find some underlying items in common with each business plan you review. These are things like how returns are generated, preferred rates of return (if any), predicted profits at sale, use of funds, as well as overall plan of things to improve in order to force the value of the property higher. There are also reg flags to look out for.Continue reading “Reviewing a Syndication Business Plan – Does it make sense to invest?”
Underwriting in the context of commercial real estate simply means researching all the extenuating factors of an investment and mitigating its risks by allocating resources appropriately. In English: Doing your homework… Learning everything you can, leaving no stone unturned, and figuring out what the cash flows will look like based on the available evidence.Continue reading “Underwriting 101”
They say that analyzing real estate investments is all about location, location, location. But what makes a location a location. With this article, I hope to impress upon you the absolute importance of vetting the neighborhood wherever you might have an opportunity to invest in a multifamily project as a passive investor. The syndicators can do a lot with a property, but not much can be done to the surrounding area. If that area is a relatively bad one, say like what I call a war zone, even the best syndicators will have trouble turning a property around and making it make money for you. Identifying demographic patterns is all about trends that increase the likelihood of success – or doom a project from the start. After all, a multifamily venture is all about maximizing the quantity of units rented yet at the highest rent per unit.Continue reading “7 Smart Hacks For Analyzing Real Estate Investments – Using Data to Verify Profit Potential”
So, you’re looking for places to invest, and looking at multifamily syndication investment opportunities all over the United States. But where do you begin? There are always going to be opportunities everywhere, but how do you move the odds of success in your favor. I think one of the best ways is to focus only on investments where population growth is very healthy. Growth in population creates demand for housing and helps keep rents maximized.Continue reading “Population Growth and Migration – What Does This Mean for Your Investment?”
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.Continue reading “Start Here”