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Returns

Check out all of our educational articles that dive into the different return formulas and calculations in passive multifamily real estate investing.

Double Money Every 7 Years

Double Money Every 7 Years: How Can I Double My Money Every 5-7 Years Through Real Estate Investing

Putting your money to work is not something that you should do, rather it’s something that you must make your priority and your duty as the custodian of your capital. As I write this in mid 2021, the Fed has already stated that we’ve seen 4.2% inflation, and a lot of economic analysts believe that inflation for 2021 is really looking more like 7-10%. This means that the purchasing power of your dollar is slowly being eroded, and you need to hedge against this threat by getting a larger annual rate or return than what the dollar is being devalued at.

What is a Good Cap Rate for Multifamily

What is a Good Cap Rate for Multifamily?

Cap rates are a fundamental metric for return and value in commercial real estate across the board. They tell us what yield investors are willing to accept when they purchase an apartment community for example. Today Cap rates are continuing to compress as investors see cash-flowing hard assets as a low-risk way to store and grow value.

In this guide, we’ll go into what drives Cap rates in multifamily, what are good Cap rates, how investors can force value, and how government bonds fit into the equation.

What is a Good IRR for Multifamily

What is a Good IRR for Multifamily? – Target IRR for Real Estate

The internal rate of return (IRR) is looked at by most real estate investors as the barometer of strength for any given project. That is because the IRR factors in the time value of money. The time value of money is important because a dollar received today is worth more than a dollar received tomorrow, due to inflation’s natural erosion of the dollar year over year, and many other factors. IRR is highly influenced by the speed of returns, meaning the sooner or more distributions are made to investors, the higher the IRR.