Private Real Estate Investing

Real estate investing doesn’t mean that you need to be the landlord, own 100% of the project and take calls from disgruntled tenants whose air conditioner blew at 2am. Some people may like that responsibility, and may have a bit more time to actively operate their properties on the side, but it’s not appealing to everyone. That’s where Investment vehicles like real estate syndications, real estate investment trusts (REITS), crowdfunding platforms and joint-ventures (JV) to name a few, give you that option. That means passively investing as a limited partner (LP), and getting all the same benefits with no headaches.

There are two main liquidity events where investors can expect to receive full or part of their initial capital contribution back through pulling equity from the property.

Outside of cash flow, the build up of equity is where all the value is created and money is made in multifamily. In this guide, I’m going to show you the three ways you build equity in a multifamily property.

If you’re a successful real estate investor, new to real estate investing, or if you’re just looking to diversify your retirement portfolio, imagine the possibilities of not paying taxes on the profits of your next investment. It’s possible with the combination of tax advantages in an IRA and real estate investments.

Each deal requires its own unique needs, and therefore you can’t paint the capital structure of a multifamily real estate deal or any commercial real estate transaction with one brush. Investor’s always ask “why capital structure is important?”, and the simple answer to that is, how you structure the capital to acquire a property, will dictate the risk and return levels of the deal. The capital stack is basically the organization and hierarchy of all the capital that’s required to finance a deal.

Value-add investing in the multifamily game requires a strong ability in being able to identify the opportunities to add value. These strategies may even be overlooked by other competing groups. Thus creating an advantage in seeing the deal through a different lens then your competitor, and allowing you to make sense of the numbers when they possibly couldn’t. Creating value doesn’t just come from implementing a strategy that produces more income, it can also come from implementing a strategy that reduces expenses. In the most simple explanation, value is created through increasing the net operating income (NOI), our job as active investors is to to increase this number through adding income and or reducing expenses.

Understanding how the SEC defines an Accredited, Non-Accredited and Sophisticated investor helps you understand what you cant invest in. In this article we dive deep into category so you know where you stand as an investor.