Look around you. Look around your circle of friends, acquaintances, and within your family. If you are like me, you may know people that have varying degrees of success – a rich uncle, a friend that’s in incredible shape, or a married couple that is deeply connected and that are still in love after 50 years. Or on the flip side, there may be an uncle that’s morbidly obese, you may know someone that is broke, or maybe a couple that is going through a bitter divorce.
There often is a pattern that occurs with unsuccessful people. People that are financially broke, tend to be unhealthy mentally and physically. Being poor is draining and stressful. It’s easy to be depressed if you are not in the best physical shape.
Continue reading “All-around excellence”
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”
What is House Hacking?
House hacking is a phenomenal real estate investment strategy that can eventually lead to living in a home without having to pay a single dollar. Additionally, house hacking may even help you make some money every month that you can keep for yourself. Continue reading “How House Hacking Can Pay for Your Mortgage”
What is the BRRRR method?
BRRRR is a strategy used in real estate that allows someone to buy more properties while using less money. So how do you do this? Continue reading “How to use the BRRRR Method”
What is opportunity cost?
Opportunity cost is an important idea in economics that many businesses think about when investing. It is a crucial concept to think about when choosing to invest in something. So what does opportunity cost mean? Continue reading “The Concept of Opportunity Cost”