“The deals just don’t pencil.” You have probably heard that phrase a lot over the last few years if you have been in the real estate investing space as an active investor or even as a passive investor. For those that are new to space or not familiar with this phrase it is simply what an investor says when they are not able to find any investment opportunities that make sense to purchase based on their underwriting. Underwriting is a deal analysis process where real estate investors do financial due diligence on a property to ascertain the current value, potential future value, and ideal ..read more

There has been great talk over the last couple years of the commercial real estate crash which made itself evident in asset class of Office real estate. Multifamily has taken its own beating itself. The quick ascent of multifamily values during the low interest rate periods of 2020-2021, and bad investment decisions made during that time are starting to create cracks in the multifamily market. We are now in the opposite kind of environment as interest rates have been “higher for longer” as the Federal Reserve has promised they would be.   Many people hoping to be rescued by low inte ..read more

  Investing in real estate comes in many forms. You can invest directly by yourself, or you can invest in the deals that other individuals put together via a private security offering. These investment opportunities often have a high barrier to entry.   The first thing you may be thinking is, “of course – real estate is expensive. Who has that kind of money?” The reality is that what may be holding some people back from investing is not the lack of money but rather some important rules defining who can invest in these kinds of opportunities.   Who can become an accredited inve ..read more

2023 was a year of almost. Investors who have waded through the seas of uncertainty over the last couple of years were hoping for a sign of stability. Perhaps the light of a new morning began to show itself in the last few months of the year as the Federal reserve continued to pause rate increases and indicated potential near term rate decreases (if deemed necessary). Wars, elections, (maybe even aliens?) and more will add to the story of 2024. Each year brings new excitement and challenges, and it will make for some great investing. If you didn’t catch these articles before then this may be ..read more

If you are new to investing or have been investing for a while you have learned that real estate investing has its own set of math. Investing is not as much about having a warm and fuzzy feeling about a property but rather if the “numbers” support a decision to invest. You may have realized that there are a lot of “numbers” in this real estate math and getting the right numbers will lead you to make good investment decisions. It can be easy to get lost in this sea of math and numbers especially if you are just looking to invest passively. While there are many rules of thumbs and benchmarks us ..read more

Investing in distressed real estate is not new by any means. In fact, investments in distressed real estate is one of the 4 main categories of investment strategies in real estate (including developments, value add and turn key properties). There has been a lot of attention on potential future distress in real estate and many funds are popping up to take advantage of this forecasted future windfall. Is it worth jumping in the mix? What Is a Real Estate Fund? We have previously spoken about real estate funds and the comparison of investing in funds versus investing in a single entity syndicati ..read more

Investing in multifamily apartment syndications is a passive investment when you invest as a limited partner. Syndications provide “hands free” income as you don’t need to worry about managing operations of apartment buildings, dealing with tenants, and managing relationships with other investors. You invest your money and get paid periodically as cash flow comes in from the investment property. You could be anywhere in the world, at your house or relaxing on the beach. You can even be out of this world, on a tourist trip to space – your money is at work while you are not. This seems too good ..read more

In the early 90’s there was a TV Show called “Tales From The Crypt” maybe you have heard of it? The premise of this show was a crypt keeper who was a living corpse. In each episode he would act as host leading viewers into a creepy and scary tale. If you have been watching the news on commercial real estate recently it may feel like you were watching a new episode of Tales From The Crypt. There’s been major foreclosures of 3000+ unit portfolios and syndicators announcing capital calls. The difference is that in this episode the living corpse is multifamily investing. With all this talk about ..read more

When we think of Independence Day it is usually a positive thought. Not only of the celebrations that occur during Independence Day but also an appreciation for the battle that many had to endure and overcome to achieve independence. Financial independence is not much different. It takes a lot of hard work and discipline to achieve financial independence. There are many positive connotations with Financial Independence but is it actually all sunshine and sandy beaches? We will take a look at some of the drawbacks that you will have to watch out for when you achieve financial independence. Wha ..read more

People ask, is now a good time to invest in real estate? The quick answer is Yes! It is always a good time to invest in a good deal. In the current markets however, not every deal is a good deal. Even in markets that are unusually good, not every opportunity is one worth the paper it is printed on. Passive Investors should rephrase the question of “is now a good time to invest in real estate syndications?” or “is it safe to invest in multifamily real estate in the current market?” to “what are good deals to invest in during the current real estate market?” I get it. There is a lot of fear and ..read more