Passive Investor Series Part 9: Return on Capital VS Return of Capital
Tuesday, April 19
When investing in syndications, the returns received are one of the essential factors in deciding whether to invest. While there are many types of returns one should consider when looking at a deal (i.e. IRR, Equity Multiple, AAR, etc.), an investor must also know whether the potential investm...
Passive Investor Series Part 8: Misconceptions of The Rule of 72
Monday, April 18
When evaluating different real estate deals, there are common returns discussed, including AAR, IRR, Cap Rate, and Equity Multiple. It is not uncommon to see a deal sponsor use AAR and IRR to show investors the type of returns they can expect. Every once-in-a-while, however, I do see t...
Real Estate Investor Series Part 9: Finding deal before capital
Thursday, December 16
Real estate has many barriers to entry including lack of knowledge of the industry, how to underwrite deals, finding deals, and raising capital. While gaining knowledge and learning to underwrite is overcome by reading and learning from the enormous amount of books, blogs, and websites, finding ...
Passive Investor Series Part 7: REIT vs Syndication
Thursday, December 09
As a passive investor, real estate is an excellent investment vehicle for income and capital growth. There are several paths to owning real estate including purchasing yourself or with a partner. On Wall Street, it is often recommended to invest in REITs to diversify your investments into real e...
Real Estate Investor Series Part 8: Types of Returns
Wednesday, December 01
There are many ways to skin a cat. This common term makes its way back a couple centuries. Roger Schlueterโs research on this saying explains discovered the following: The most interesting discovery I made was that the people who began using the phrase seemed to be equal-opportunity animal abus...
Passive Investor Series Part 6: Short Term vs Long Term Hold
Wednesday, November 24
When investing in or operating a syndication, the common hold time for a property usually falls between 4-7 years with at least a 15% IRR or annualized return. This means an investor is projected to double their invested capital during the hold period. After the investment is sold, the investor ...