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The Process of Acquisitions
The national apartment market has shown itself to be exceptionally durable in the face of COVID-19. When we first began experiencing shutdowns, there were talks of being able to find deals easily due to highly discounted properties. Because the multifamily market is so strong and because the interest rates have been pushed so low, we…
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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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The Art of Acquisitions
“Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work. The only way to do great work is to love what you do. If you haven’t found it yet, keep looking. Don’t Settle.” – Steve Jobs…
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Did You Know… Tax Update
The $2.2 trillion Coronavirus Aid, Relief, and Economic Security Act (CARES Act) signed into law on March 27th of this year made changes to current net operating losses, allowing current losses to be applied to previous year’s taxes. For example, if in 2019 you had more losses than gains you may be able to apply…
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Determining Property Criteria
Specific Property Criteria When looking to purchase anything in life, you must first decide on a few factors before you begin your search. Take clothing, for example. Before you go shopping, you typically have some idea of what you are looking for—a shirt, pants, hat, purse, skirt, or a new pair of shoes. Let’s say…
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Using The Cap Rate to Determine The Strength Of A Market
What is a cap rate and how is it calculated? The cap rate is short for capitalization rate. The cap rate is the total return you would make off the property if you were to pay for the entire property in full with no debt. For example, if you purchase a $1,000,000 property with a…
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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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Property Management Economies of Scale
A Shared Vision As operators of large multifamily assets, we rely on third-party property managers to execute our vision. It is important that the property management company shares our vision. If they have their own vision for how things should operate, then the two parties will constantly be at odds with one another—which is not…
Education
