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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.
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Apartment Syndication Investing – What does a good opportunity look like?
You are ready for apartment syndication investing. You found several multifamily syndicators, like them and trust them based on their transparency and past performance. Two of the sponsors currently have projects they are working on and need to get funded. You have a difficult decision.
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How to Invest in Real Estate with IRA
Invest in Real Estate with IRA? Possible? YES. Getting started can be very easy. Don’t be intimidated. Move your retirement funds into a self-directed retirement fund so that you can take advantage of IRS-approved investments opportunities.
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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…
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Liability Protection – CYA – Cover Your Assets.
I think you can interpret what I’m saying here. When you start investing in apartment complexes, you can expose yourself to needless risks in the form of tenant lawsuits. It is wise to do it the right way. Luckily, most syndications can offer several layers of protection.
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Depreciation and Why it Matters
This accounting expense can seem almost magical, but as assets tend to wear out over time, we can account for that reduction in value, deducting the cost of an asset over its useful life. Contrary to popular belief, depreciation does not fully eliminate the need to pay taxes… But it can delay them…
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Reviewing a Syndication Business Plan – Does it make sense to invest?
A real estate syndication business plan outlines how your investment will grow. Learn 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. Topics include acquisition, improvements,…
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Opportunity Zones – How to Defer or Eliminate Capital Gains
Using opportunity zones to re-invest our unrealized capital gains into projects that help local communities, we can defer and sometimes eliminate taxes on capital gains. Opportunity zones are designed to spur economic development and job creation in distressed communities.
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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. If you are just starting out, you are probably not that familiar with what one entails. There are key topics that should be discussed by the syndicator, and…
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Managing Investment Risk in Commercial Multifamily Real Estate
Managing investment risk is unavoidable, especially in passive real estate investing. Generally speaking, the higher the risk, the higher potential reward. The opposite is also considered true. Avoiding absolutely all risk is unrealistic, so your job as an investor is to determine how much risk is acceptable to you, and the things you…
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How to Earn Passive Income from Real Estate
We have been told by some that investing in real estate is a way to get rich quick. While this actually has happened to very few, this is not the norm. What you can count on though is that to earn passive income in real estate is a slow but steady way to…
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Underwriting 101
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…
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There are Different Classes of Multi-Family Real Estate – What are the ABCs?
Each class of multi-family real estate 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. The characteristic classes help classify a property based on geographic area and physical condition.
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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.
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7 Smart Hacks For Analyzing Real Estate Investments – Using Data to Verify Profit Potential
When you are analyzing real estate investments in which you might be passively investing, you should be using these data demographic hacks to learn about the neighborhood where that property is. Bad areas can make bad investments, BUT great demographic patterns increase the likelihood of success.
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What is Passive Real Estate Investing?
Passive real estate investments are automated income streams that do not have any associated management responsibilities. One of the main differences between passive and active real estate investing is the amount of continuing effort involved to sustain the health of the investment.
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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…
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Secret Shopping – The Key to Watching Over Your Investments
Situation… You ask the operator why the returns are dropping off. The answer you are given? Higher vacancy. But sometimes this isn’t enough. You have to become a secret shopper.
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Population Growth and Migration – What Does This Mean for Your Investment?
Looking for places to invest, and looking at multifamily syndication investment opportunities? Seek out opportunities in high population growth. Growth in population creates demand for housing and helps keep rents maximized – and your investment.
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How Much Real Estate Should be in Your Investment Portfolio?
Blindly following traditional rules of thumb can leave the investor more exposed to unnecessary risk. The right allocation for you will depend on your risk tolerance, time horizon and additional factors specific to your unique situation. Let’s take a look at some things you might want to consider.
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Good and Bad News on Using a Roth IRA to Invest in Real Estate
One of the coolest things about using a Roth IRA for investing in multifamily commercial real estate is that you do not pay any taxes on any gains. Find out how.
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The Split – 2 Profitable ways to Share in a Project’s Return
When looking at different multifamily syndication investment opportunities, you need to be aware of the split. An offering will generally specify the percentage of profits and where they go.
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5 Tips for Preserving and Increasing Your Net Worth
Throughout all of his many investments over the years, and gaining investment momentum, a friend of mine has adhered to some guiding principles that he feels other people could use as well. So… What are the tips?
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Passive vs. Active Investments
Learn the differences between investment styles within active and passive investing, from day trading in stocks and options trading to multifamily syndication investing. There’s a vast spectrum in effort needed to succeed in each and everything in between.
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Tax Benefits of Multifamily Syndication
There are a number of powerful tax benefits that come with investing in real estate. It’s likely the number one benefit that are the massive deductions. Why do apartment investors get all of these great tax benefits? It’s because of government incentives.
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Passive Investing in Real Estate: Capital Gains, Cash Flow, and Speculation
In the world of investment, there are two basic principles: investing for capital gains and investing for cash flow. But there is also speculation if you do not know what you’re doing. Apartment investing allows smart investors predictable gains and cash flow.
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Should you invest in Apartment Syndications or Single-Family Homes?
Many people who have full-time jobs are lured in to the idea of passively owning rental homes and the promise of “mailbox money.” Which is better: Apartment syndications or single-family rentals?
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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?
Syndicators always ask their investors if they are accredited versus sophisticated 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…
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8 Awesome Ways to Find Syndicators This Week
Many investors who hold well-paying careers or operate successful businesses, pick investing passively 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. Let’s discuss how to find syndicators.
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How to Pick a Syndicator to Invest with Them Directly – Ask the Right Questions
Knowing how to pick a syndicator is a skill that every passive investor needs to hone. Before you evaluate syndication deal opportunities, you first need to evaluate the actual syndication teams. Good teams will usually have good deals, so if you are looking for opportunities, finding the team is the higher priority. But…
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5 Multifamily Investment Opportunity Characteristics
Each multifamily investment in a real estate project deal is unique, so it is sometimes difficult to compare them against each other. One way that you can do this is to compare the different characteristics of risk in order to make an informed decision on which one to invest in. You ultimately want…
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The Challenges of Active Real Estate Investing: Tenants, Toilets and Trash
Active real estate investing can be very difficult. This article will make you think twice about taking on such a huge responsibility, especially when you can get the same returns passively through syndications. When actively investing, you are responsible for finding opportunities, financing them, renovating them, and renting them out. Managing your property…
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What is Multifamily Commercial Real Estate?
… any residential property consisting of 5 or more rental units. But there is a lot more to this that meets the eye. To truly understand how multifamily commercial real estate is defined, it is important to understand the context of where it fits within the myriad of commercial real estate types.
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What to Expect During Your Passive Real Estate Investment
Welcome to the world of passive real estate investing. The adventure continues. You have made a decision to invest in a syndication that offers great returns and with a team that you know, like and trust. Will it be a bumpy ride, or will the syndication team execute every aspect of their business…
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A Rewarding Side Hustle – Make an Extra Income Outside of Your Day Job – Without Becoming a Landlord
So… You’re looking for an excellent side hustle and you want to invest in real estate, but do not have the time, energy or knowledge. You have heard that investing in multifamily rentals can be lucrative, if you only had the know-how and a huge down payment. Is there a way? Yes…
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How Real Estate Crowdfunding is Making it Easier to Passively Invest in Syndications
Using a real estate crowdfunding platform enables you to leverage the crowdfunding site’s due diligence resources, allowing you to invest even more passively than ever before. See how investing in syndications can be simplified. Review the list of crowdfunding sites at the end.
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Forced Appreciation – How It Works and Why We Like It
Forced appreciation is the increase in the value of an investment property due to an investor’s actions, in this case, making it more profitable. Contrast this with natural appreciation, sometimes called market appreciation, where uncontrollable (by the investor) market forces are at play.
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Preferred Return vs. Non-Preferred Return – Which One Should You Pick?
A preferred return is a return that puts you, an investor, in a preferred position when it comes to profit distribution of a project’s cash flow. Money goes to you first when there is a distribution, and until the hurdle of the preferred return is totally met, the syndicator gets nothing. A preferred…
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Understanding Returns – What Are CoC, IRR and AAR and How Do They Differ?
CoC stands for Cash-on-Cash Return, IRR means Internal Rate of Return, and AAR is Average Annual Return. They are all various measures of how profitable an investment might be, though have their own characteristics. Understanding returns, and the different metrics that are used, helps compare different investment opportunities.
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Stock Market vs. Passive Real Estate Investing
Which one is better, stock market vs. passive real estate investing? This has been a heated debate for quite a while. There are many pros and cons on each side, and unfortunately it is up to you to determine which risks and rewards you are willing to live with and hope for.
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How to Read and Love a K-1 Tax Form
As part of an IRS income tax filing, the Schedule K-1 tax form is the annual reporting that you will receive from the sponsor in a multifamily syndication. It is used to report income, gains, losses, deductions, credits, and the K-1 lists the beneficiary’s share of these incomes, deductions, credits.