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Submitting Your First Soft Reserve
What is a Soft Reserve? Our offerings are released to you via email and included in the offering email with the option to submit a soft reserve. You will click on the soft reserve button (or link) to submit your information in order to reserve your spot in the offering. The soft reserve is simply…
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Expecting Lower Returns on Future Offerings
If you would have asked me in 2019, “what type of returns does PassiveInvesting.com typically try to achieve on your multifamily investment offerings?”, I would have told you that we are typically projecting 16-17-18% IRR (see page 6 for article explaining the IRR calculation) for a 5 year hold time period. This is not the…
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Are You Familiar With The Term “Extreme Ownership”
It was coined by former Navy Seal Officer Jocko Willink (made popular in his recent book, Extreme Ownership). It means that if anything goes wrong on a property, it’s the general partner’s fault. As the general partner, the PassiveInvesting.com team believes in an “extreme ownership mentality” when it comes to asset management. If something goes…
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Understanding the Internal Rate of Return (IRR)
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 zero.…
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Reputation Is Everything
“A good name is more desirable than great riches; to be esteemed is better than silver or gold” – Proverbs 22:1 When trying to purchase multifamily assets, you quickly realize that you have some stiff competition. There are many groups who understand the value of a multifamily asset. They understand the value of cash flow…
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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…
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Talking With The Former Owner Of Carrington at Brier Creek
Last month our managing partners, including myself, took a trip to Orlando, FL, to attend a conference called the National Multifamily Housing Council (NMHC). This annual event is the largest multifamily conference to network with all of the major players in the industry. There are thousands of people that attend this event each year. One…
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Can You 1031 Into An Apartment Syndication?
History of the 1031 Exchange Tax Code A 1031 exchange is a powerful tax deferral strategy that was originally started in 1921 a short 3 years after the first income tax code was enacted by congress. Since then it has had a complicated history and has gone through several iterations. When it was first enacted,…
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The Importance of Correct Debt Selection
An interesting piece of information was brought to our attention when we recently toured a potential deal. The seller had over $4.4M in a prepayment penalty for the remaining years of their 10-year fixed note. The reason for the large prepayment fee is yield maintenance. Yield maintenance means the borrower pays the lender for any…
Education
