Making the most of your real estate investments is about more than just a healthy Cash on Cash Return. It requires smart and decisive financial management all along the way. But with the accounting nuances and tax complexities of real estate investing, making smart decisions requires knowledge and expertise beyond that of the average passive…
A common metric used to evaluate investment performance in multifamily real estate and often compare various investment opportunities is the Internal Rate of Return (IRR). When reviewing investment opportunities from multifamily sponsors, IRR is one of the projected returns that should be shown. IRR is expressed as a single percentage, such as 15% or 17%,…
The average investor is a passive investor. He or she is a professional focused on his or her line of work, and not an expert in investing. They do not have the time, nor in many cases even the interest, to be active in researching different investments, asset classes, markets and the like. As…
When deciding to invest in real estate, one of the first steps is determining our Investment Strategy. That is, a plan that directs what we invest in and how we manage the investment. There are three primary Investment Strategies to pursue, based on the type of asset in focus: Distressed Assets Value-Add Assets Turnkey Assets…
In multifamily real estate, our Investment Strategy serves as a plan that describes “what” and “how” we plan to manage the investment and make our returns. Investors will usually focus on one of three primary categories of assets for their Investment Strategy: Distressed Assets Value-Add Assets Turnkey Assets This article focuses on the Value-Add Investment…
Having an Investment Strategy means having a business plan that describes “what” we plan to invest in, “where” we plan to invest, and “how” we plan to manage the investment. In multifamily real estate, our Investment Strategy will usually focus on one of three primary categories of investment assets: Distressed Assets Value-Add Assets Turnkey Assets…
When applying for job, normal protocol is to complete an application and/or submit a resume. The job application or resume are basically the initial screening step that lets the employer quickly determine if we meet the minimum qualifications and decide whether to take the next step in the hiring process. Why do this? Because interviewing…
One of the first things we all start to hear as we enter our real estate investing journey are terms like, “Class A” or “Class B” property. What does Class A, B, C, or D actually mean? Each class of real estate (A, B, C, D) represents a different level of overall property quality. In…
In the world of investing there are all kinds of metrics used to indicate how much money we’re making. We sometimes use “return on investment” or “ROI” as a catch-all in this regard. However, in the technical details, there are a myriad of numbers, factors, and percentages that provide information about our investment returns along…
As a real estate Investor, whether in single family rentals, multifamily apartments, commercial business properties, storage units, or whatever, one of the first questions to answer is…where? Where do I look to find my investment property? Of course, Investor or not, we’ve heard all our lives that the number one rule in real estate is,…