Markets go up and go down. It doesn’t matter what assets we’re investing in – stocks, bonds, real estate, gold, currencies, fine art, or exotic automobiles. There are times when the market will boom and times when it will bust. In a booming market, it can be relatively easy to invest and make money without…
Working from home can be a very new concept for some people, whereas many have been doing so for years. I’ve been working about 90% of my time from home for the last 4-5 years, and have many colleagues and employees who do the same. The truth is that working from home has both positive…
When investing in multifamily or other types of commercial real estate, a common calculation used to measure investment performance is the Equity Multiple. The Equity Multiple represents how much an Investor is projected to receive in total distributions over the life of the investment, based on his/her total capital invested. Equity Multiple = Total Distributions…
Multifamily syndications can be great for those looking to invest in real estate in a passive manner. However, in an eagerness to jump in and realize the benefits, there are two major mistakes that investors can sometimes make in multifamily syndications. 1. Not Properly Vetting the Sponsor As investors, we invest in people first and…
Leveraging the equity in an investment property is one of the primary strategies used by investors to scale up in their real estate assets and access capital for other investments. Three of the most common ways to gain access to the equity in a property include cash-out refinancing, home equity loans, and home equity…
Not just anyone can invest in any type of real estate deal. There are certain real estate investments that are restricted to only those who meet the specific criteria of an Accredited Investor. Now that’s not my own rule or that of particular investment managers. Rather, its the securities laws of the federal government, regulated…
When reviewing a potential real estate investment opportunity, or the performance of an existing investment, one of the indicators that should be considered is Cash on Cash Return. The formula for Cash on Cash Return is the Cash Flow divided by the total Cash Investment. Cash Flow / Total Cash Investment = Cash on Cash…
In a recent article from National Real Estate Investor, John Ahern, a commercial loan underwriter with Alliant Credit Union, provides the following five tips on “telling your story” as a borrower when securing financing: 1. Share Your Story 2. Know Your Market 3. Articulate Your Long-Term Strategy 4. Prioritize Your Debt Needs 5. Know Your…
A major factor that mortgage lenders will review when evaluating whether you qualify for a loan is your Debt-to-Income Ratio (DTI). As the name implies, your DTI is a factor of how much debt you pay compared to how much income you make. Its determined on a monthly basis. More specifically, DTI calculates how much…
Both turnkey single-family rentals and multifamily syndications are great strategies for the real estate investor who wants to be passive. Both can mitigate the risks of owning real estate long-distance and provide healthy returns without requiring investors to be landlords. A closer look, however, reveals certain features in which multifamily syndications can be a more…