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The Outsiders
In my spare time, I enjoy reading books about various topics and disciplines. It’s a great way for me to relax, learn something new, and enjoy a great story. Biographies, non-fiction, and business books are typically my go-to reads. One of my favorite books that I read this year is called The Outsiders: Eight Unconventional…
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Tracking Your Unreturned Capital Contributions
If you have ever invested in one of our projects or another private equity real estate offering, then you have likely encountered the term “unreturned capital contribution.” This is another term that is sometimes understood but many investors do not have a full grasp as to why this term is so important for your overall…
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Understanding Multifamily Revenue Terms
The accounting world and specifically multifamily accounting tend to use words or phrases that can be tricky to remember. One way to make sense of the terms is to think about them as if you are a resident renting an apartment and how a specific term can apply to one resident or one lease. This…
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Equity Waterfall Structures and Hurdles
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 waterfalls to consider: What are equity hurdles? Inside the waterfalls…
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What is an accredited investor?
An accredited investor has either a net worth of $1mil, not including their primary residence, OR an annual income of $200,000 (or $300,000 if married) for the last two years and you have a reasonable expectation that it will continue. Feel free to contact us if you have further questions regarding whether or not you…
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Understanding Preferred Returns
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 preferred return…
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The Importance of Understanding Capital Stack Structures for Apartment Syndication
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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Due Diligence
In the multifamily industry, the term “due diligence” is common. The term is perfectly descriptive when you stop and think about it. The word “DUE” infers that something is owed. And that whatever is due must be given or paid. In other words, it is a debt! A debt of what? Well, of DILIGENCE. The…
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Why Multifamily Deals Are Falling Out of Contract Due to the Coronavirus
There are two main reasons why multifamily deals right now are falling out of contract. The first is due to the lender backing out at the last minute and the second is because it is hard to underwrite for projected rents right now with renovations. Let us discuss both in detail in this article to…
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Impact and Response to COVID-19
It is in challenging times like this that true leaders emerge and the weak falter. Therefore, we believe it is vitally important to invest with a group that has extensive, successful experience managing and leading businesses. Our team has been taking daily decisive actions as we progress through this pandemic that has hit the entire…
