What is a tax lien?
A tax lien is a legal claim placed on a property by the local, state, or federal government. There are two types of tax liens, a federal tax lien, and a property tax lien. So how can these liens help investors make money? Continue reading “What To Know About Tax Lien Investing”
Purchasing short-term rentals can be profitable, but also risky. For this reason, it is important to be cautious and perform thorough due diligence before buying. In this article, we’ll highlight some of the most important steps you can take to analyze the profitability and risks when buying a short-term rental. Continue reading “How To Perform Due Diligence on Short-term rentals”
What are short-term rentals?
A short-term rental is exactly what it sounds like. It is when a home, whether it be an apartment or a house, is available to stay in for short-term periods. In most cases, short-term rentals are similar to a hotel. Typically, guests stay for less than 30 days at a time. As a result, the property is listed at a daily rate. The most well-known of these short-term rental companies is Airbnb. They allow you to book a stay pretty much anywhere and also allow you to become a host yourself.
Continue reading “How to Create Wealth From Short-term Rentals”
What is a prefabricated home?
A prefabricated home is typically referred to as a home put together in a factory, that is then transported to the desired build location. Once the home pieces are there, it is either placed at the site as a whole or, transported in several pieces and then built. Almost as if they were building blocks. Once everything is on-site, it can be assembled in a matter of weeks. The whole process from start to finish may take about two to four months in total if you include the rest of the steps such as plumbing, electricity, setting up appliances, etc. Continue reading “What to Know About Prefabricated Homes”
When buying apartments, there are usually three possible strategies that can be used:
- Buying a high-quality property that needs little to no renovations
- Buying a distressed property, fixing it up to increase its value
- Buying a semi-distressed property in a good neighborhood, making the necessary repairs to add value
Continue reading “Three Different Strategies Used When Buying Apartments”
What are real estate mortgage notes?
When a person wants to buy a property, but isn’t able to buy it all in cash, they are going to be asked to sign a mortgage and a promissory note by their lender. The buyer then must pay part of the purchase price as down payment, and pay for the rest of the mortgage over time with interest. Continue reading “How to Invest in Real Estate Mortgage Notes”
As we’ve discussed in other articles, when purchasing apartment buildings, there is normally two types of partners involved:
- A general partner or partners (syndicators)
- Limited partners (investors)
There is a variety of structures on how limited partners can get paid. Some of these are:
- A fixed preferred return
- A share of the profits from the rents and the sale of the building
- A combination of the two approaches above
- Other creative approaches
Independently of the approach chosen, there are certain metrics that each potential investor should be familiar with. Some of these are discussed in the following sections. Continue reading “How do Apartment Building Investors Get Paid”
What are A, B, C, and D properties?
The different letters in multifamily properties are similar to grades you receive in school. So what determines a property’s grade? Continue reading “What to Know About A, B, C, and D Properties.”
What is syndication in real estate?
A syndicate at it’s core, means a group of individuals coming together to promote a common interest. But how can this be accomplished in real estate? Continue reading “Syndication in Real Estate”
What is a private placement memorandum for real estate?
A private placement memorandum also called an offering memorandum or a PPM, is a legal document issued to potential investors in a private deal by a private company. But what important information can be found in this document? Continue reading “What to Look for in a Private Placement Memorandum for Real Estate”