Opportunities

October 11, 2023January 19, 2024

Apartment Syndication Investing – What does a good opportunity look like?

You are ready for apartment syndication investing. You have made contact with several multifamily syndicators, like them and trust them based on their transparency and past performance. You are finally invited to invest with them. Two of the sponsors currently have projects they are working on and need to get funded. They each conduct investor presentations on Zoom, and you are able to attend them both. You come away with a difficult decision.

September 16, 2023January 20, 2024

Quiz – Winner or Dud? – Choosing the Right Investment

Once you make your connections with lots of good syndicators who have met your screening requirements, you will start receiving offers to participate in investment opportunities on a regular basis. I seem to get several each and every week in my email inbox. Most look too good to pass up, but with so much to choose from, you need to exercise discipline and only choose the best of the best.

July 28, 2023January 17, 2024

Reviewing a Syndication Business Plan – Does it make sense to invest?

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.

July 13, 2023January 20, 2024

Opportunity Zones – How to Defer or Eliminate Capital Gains

One of the newest sets of tax rules available to us is the inducements around opportunity zones, calling for us to re-invest our unrealized capital gains into projects that help local communities. The US Government has established certain areas of the US that it wants to improve, and has implemented tax incentives to investors to help out by financially stimulating those areas. By participating in opportunity zone investment opportunities, we can defer and sometimes eliminate taxes on capital gains.

June 30, 2023January 17, 2024

The Syndication Offering – What to Expect During an Investor Presentation

A syndication offering – that is, a passive investment opportunity – can be a lot of information at once, but it is usually quite structured. Some passive investors see dozens of investor presentations per year, but if you are just starting out, you are probably not that familiar with what a syndication offering entails. As you get more experience with these, you will note that most have some things in common. This carries through from the printed materials to PDFs to webinars. There are key topics that should be discussed by the syndicator, and presentations usually have everything addressed below but likely not in the same order.

April 30, 2023January 20, 2024

There are Different Classes of Multi-Family Real Estate – What are the ABCs?

When we talk about the ABCs of multi-family real estate, we are really defining the property classes of the assets, or describing the characteristics of a potential real estate investment. The Classes are A, B, and C, and help classify a property based on geographic area, physical condition, and tenant and surrounding demographic characteristics. Each class implies different levels of risk, reward, challenge and value. When reviewing syndication offerings, these are often referred to as class A, class B, class C and even class D.

April 15, 2023January 17, 2024

14 Pros and Cons of Investing in Multifamily Syndications

Investing in multifamily syndications has long been accepted as a stable, recession-resistant investment. Great wealth has been created with commercial real estate like apartments. On the flip side, great losses have been experienced as well. As all investments carry inherent risk, the benefits and disadvantages should be weighed and considered.

February 25, 2023January 20, 2024

Finding Sponsors by Looking at SEC Filings – a Tutorial to Find Syndicators

Now it is time to put on your detective hat to find syndicators. All syndicators in the United States are compelled to file their offerings with the Securities and Exchange Commission (SEC). This filing is a Notice of Sale of Unregistered Securities. Looking for these types of filings gives you a starting point for finding syndicators who have experience syndicating at least one project.

December 15, 2022January 17, 2024

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.

October 14, 2022January 17, 2024

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.

Category: Opportunities