Articles

How Does Investing in Real Estate Hedge Against Inflation? Part III

In two previous blog articles, I made a lot of noise about inflation. In the first post, I talked about how to grow wealth through real estate investing in this historically unique time of low interest rates and increasing inflation. I discussed the Cantillon Effect and proposed a formula to grow your wealth.

The Mythical Year Three Refinance

I keep seeing real estate syndications that include a refinance during the third year of the deal. I’m not going to tell you that refinancing is a bad thing, but when I see a passive investment deal that requires a refinance, that’s a big red flag for me. And no one tries to downplay the refinance in their deals. It’s not buried in the small print. In fact, it’ll just be presented as a sensible, regular part of their business plan. So, that means it should be OK, right?

Why the Midwest?

BAM Capital is a multifamily syndicator headquartered in Indianapolis, Indiana. Using a Fund model, we seek a balance of stable cash flow, capital appreciation, and accelerated/bonus depreciation tax benefits while maintaining a low overall risk profile. Part of how we accomplish those goals is by targeting the best assets for our portfolio. Our investment strategy focuses on assets located in midwestern cities. Why the Midwest? Find out below.

Three Ways To Get Started In Real Estate

Of all the writing I’ve done over the past years, I’ve never written an article comparing three common ways to invest in real estate. Of course, I’ve talked about it many times in interviews, but I’ve never laid it out in an article with my usual visual aids, so here goes! What I’m about to discuss certainly doesn’t represent the only way to invest in real estate. Still, it represents three common ways readily available to most people.

The Sponsor - What They Do and How To Trust Them With YOUR Money

In our last edition, we explained what real estate syndications are and whether you should consider them for your investment portfolio. In this article, we’ll cover the most important factor you need to consider prior to selecting a specific investment - the sponsor. Before choosing a market or the asset itself, you’ll want to know who is in charge and whether they are capable of executing the plan they’ve envisioned. The sponsor can make or break the returns you receive on your hard earned money.

2022 Special Report: The Great Resignation, Ramped-Up Inflation & What It Means for Investors

Recent inflation numbers are causing alarm bells to go off, making investors scramble to determine how best to prepare. In this article, I break down the underlying factors causing this spike in inflation, and the unintended consequences of “The Great Stimulus” and “The Great Resignation.”

Deciding Between a Multifamily or Single-Family Investment? There's an Unlikely Winner.

When starting their real-estate investing career, most investors initially think about buying a single-family property (whether that's one home or condo) and renting it out. Most people gravitate towards that because it is conceptually more straightforward. After all, people usually have some level of experience

Commercial Real Estate Could be Poised for Continued Lending Growth in 2022

After commercial real estate lending volume rebounded from a challenging 2020, the number of deals is poised to soar further this year in a higher interest-rate climate, according to industry experts with whom Commercial

Here are 9 Disadvantages to Investing in Real Estate Syndications

“Come on. It sounds too good to be true! You can’t tell me it’s this good. There must be some downsides.” There are. And don’t let anyone tell you there aren’t! Like every other investment,

Apartment Rents Rose Last Month at Fastest Pace Seen in a Decade

US apartment rent growth is back in a big way, now that the country’s reopening local economies are fueling household creation and stimulating robust demand for all types of housing.

Active or Passive Real Estate Investing....A Balanced Look at the Pros & Cons

Not long ago, individuals had somewhat limited options when investing in real estate. Either they could buy a rental property, usually a single family home or a small multifamily, or invest in a REIT. One choice very active. The...

How a Passive Apartment Investor Interprets a Schedule K-1 Tax Report

Apartment syndications remain an appealing investment for passive investors due to the myriad of tax benefits—the foremost being depreciation. Fixed asset items (a long-term tangible piece of property or equipment that is used in operations to generate income and ...

How Proptech Is Changing Multifamily For The Better

The way we engage with multifamily real estate is changing. Covid-19 may have expedited the process, but a digital transformation was taking place long before we all "went virtual" in March of 2020. That's because of proptech. The rising popularity of ...

Why Workforce Housing Offers Attractive Risk Adjusted Returns Versus Alternatives

With the recent dramatic increase in the money supply and The Fed telegraphing their intent to reach their target inflation level, many believe inflation is set to take-off. That may be what Wall Street is saying, but on Main Street, multifamily developers have seen in plain...

Gold? Bitcoin? Look Instead to Real Estate as a "Store of Value" to Combat Inflation

There is much conversation in the financial sector that inflation may be brewing. I’m concerned about it myself. In a world where every asset seems to be in a bubble, I’m looking to find a store of value for my wealth and reduce risk. If significant inflation is....

Why Mobile Home Parks are Getting So Much Attention

Supply & Demand The demand for affordable housing is arguably the highest need in the real estate sector in 2020. In 2018, 38.1 million people lived in poverty in the U.S., which is a poverty rate of 11.8 percent. Low income...

Investing in Self-Storage Facilities

Commercial real estate is made up of several different kinds of property types. In this article we look at self-storage facilities, a fast-growing sector that has taken advantage of a growing market of persons needing to store excess household items.

Why the Top Asset Allocation Models Include Real Estate

In the financial investing world, asset allocation models are everywhere. There are income models, growth models, and balanced models. There are one-fund, two-fund, and three-fund models.

A Quick Guide To Saying Yes, Maybe Or No Way To Passive Real Estate Investment Deals

I'm a passive investor. This means that I've cultivated a diversified portfolio of investments that provide me with cash flow on a regular basis and leave me at liberty to do the things I really care about every day.

The Red Flags for Passive Apartment Investing

On my numerous initial calls with our passive investors, I get asked, “how do I make sure that I am investing with a “good” operator when placing capital into passive apartment investing.” .

How to Choose the Right Syndication Opportunity

As a passive investor, you’re likely always on the lookout for new investment opportunities. As you’ll come to find out, the real estate sector is full of many great potential opportunities if you know how to spot...

Passive Real Estate Investment Can Be Win/Win With The Right Syndicator

My first big move in real estate was when I decided to move to New York City to become an actor and was inspired by the musical Rent. Ironically, this led to a career in digital advertising, and finally, real estate investment...

9 Reasons to Invest in Real Estate Syndication

Smart investments can change our lives by providing us multiple streams of income to live our dreams. However, while we see investors filling up their portfolio with stocks and bonds, they often overlook real estate. But, in the ...

Biggest Risks When Investing In A Syndication And How To Avoid Them

Many investors are now putting their money into real estate, especially multifamily properties. There are a number of good reasons to do this. Prices for multifamily properties have skyrocketed over the past several years, and because of their ...

The Biggest Misconception About Investing In A Real Estate Syndication

Many passive investors turn to real estate syndications when investing in multifamily properties. The reasons may vary, but they all come down to the fact that passive investors don’t have the experience, time and...

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