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Investment Philosophy
Short-term or Long-term Investments right now… What’s Best for You? A few investors recently reached out to discuss various investment strategies as we continue going through impacts from COVID-19. The main topics of discussion were centered around timing (invest now or wait) and should the investment be short or long term. From a Single Room…
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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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PassiveInvesting.com takes a gigantic step in increasing investor satisfaction (and profits)
PassiveInvesting.com continually looks for ways to deliver a better return for our investors (and a better experience for our residents) by doing things smarter and more efficiently. You’ll be happy to know we took a gigantic step in that direction on March 3rd when Brian Bornhorst became the Director of Asset Management. We are extremely…
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What Due Diligence Looks Like Post-COVID-19
In an article published in May, I outlined what due diligence comprises. Today I will update you with some changes that have taken place since the arrival of COVID-19. As a refresher, the most common usage of the term “due diligence” refers to the verification of an asset before it is purchased. This is broken…
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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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How Money Walks
Did you know the IRS tracks the migration pattern of money? Specially, the IRS tracks where people move and how their adjusted gross income (AGI) impacts the new state they call home. This information has been pretty insightful for our group as we think about the job growth and population growth that is occurring in…
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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…
Education
