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IRR – The Internal Rate of Return Metric
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 equal to…
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The Importance of Understanding the Capital Stack
What is a Capital Stack? A capital stack consists of the total capital invested in the 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 of the capital stack in each investment offering is…
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How To Use Passive Investing To Rapidly Scale Your Investing Portfolio
Twenty years ago, my realtor gave me a copy of Rich Dad Poor Dad (often called the “little purple bible” in the real estate world) before I closed on my first property. Like many people, that book launched me down the path of real estate investing. While I understood the power of putting my…
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Self-Directed IRA FAQ’s for Passive Investors
When I started self-directing my retirement funds in 2016 to invest in real estate, I had many questions. I wish I had had a “go-to resource” to get my basic questions answered. That said, I’m pleased to provide you with a synopsis of my Passive Investing Masterclass episode with Scott Maurer of Advanta IRA to…
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An Investment Strategy Worth Imitating
I’m writing this on my return flight from a conference in Denver, where we spent three days learning from and engaging with some thoughtful people. Key themes of the weekend were where we are in the market cycle, what 2022 will hold, and the impact of projected interest rate increases on the real estate market…
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2021 in Review and What to Expect in 2022
As you know, 2021 was the year after the pandemic started and it certainly had its ups and downs in a variety of industries. The two major areas that were disrupted the most were the supply chain and the labor force which has caused a huge increase in inflation. Many sectors just couldn’t maintain any…
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Four Principles For A Successful Life
I’m writing this article on a Friday morning on our way to Portland, which is stop seven of eight of a whirlwind investor meal tour. Dan and I have been to Denver, Las Vegas, Phoenix, San Diego, Los Angeles, San Jose, and we’re wrapping up today in Portland—then on to Seattle. These gatherings are a…
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Growth Minded: How We Protect Your Investment As We Expand
One of the more common questions that I have been receiving lately from investors, is about how we are managing the growth that we have seen over the last several years. I don’t fault them for asking the question as it totally makes sense. It is a question that should arise when you are investing…
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Dispositions: How We Determine When It’s Right To Sell
By the end of 2021, our team will have gone full cycle and sold 6 different assets. All these assets will have outperformed the original projections from when we acquired the assets. All of them are also being sold earlier than the original projected hold period. This is always great to hear when we outperform…
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Capital Markets Explained
In life, there are things you simply cannot control. Uncontrollable factors create risk. If we could control everything, then we would never allow a negative. If we never encountered a negative, then we would never grow. Resistance equals strength. Strength is growth, and growth causes movement, and movement causes you to encounter even more uncontrollable…
