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Equity Waterfall Structures & Hurdles for Passive Apartment Investors

Friday, October 09

What are equity waterfalls? An equity waterfall is the breakdown in a private equity real estate transaction that outlines how the distributions will be handled between the operator and, you, as the passive investor. In private equity real estate transactions there are typically 3 different water...


Understanding Preferred Returns for Apartment Syndication Investing

Thursday, July 02

What is a Preferred Return? A preferred return is a minimum return that you would receive before the operator would receive any of their share of the cash flow or sale proceeds. It is typically expressed as a percentage of return on an annual basis. For example, if you invested $100,000 and the p...


Understanding Capital Stacks for Apartment Syndication

Saturday, June 13

What is a Capital Stack? A capital stack consists of the total capital invested in a project. For multifamily real estate, the capital stacks will be comprised of a combination of senior debt, mezzanine debt (optional), common equity, and preferred equity (optional). Having a clear understanding ...


Understanding the Internal Rate of Return (IRR)

Monday, May 04

What is the Internal Rate of Return and How is it Calculated? The internal rate of return (IRR) is the most used calculation in private equity real estate investments. The IRR is a discount rate that causes the net present value (NPV) of all the cash flows throughout the investment to become equa...


Swap Until You Drop – The Power of the 1031 Exchange

Thursday, February 06

1031 Exchange and a Syndication On my calls with passive investors, I often get asked, “Can you do a 1031 Exchange (commonly referred to as just “1031”) with an apartment syndication with a group of investors?” The apartment syndication structure does make it more challenging to do a 1031 excha...


Are Class-A Multifamily Assets a Smart Choice in the 2020 Multifamily

Sunday, January 26

Each stage in the real estate market cycle presents a variety of opportunities to shift the acquisitions thought process and the ability to diversify asset classes to our portfolio. Our team is constantly monitoring the ever-changing stages of the market cycles. As we move into the 2020 year, ...