It’s hard to believe that just one year ago passive syndication investing was a foreign world to me. Twelve months back, I was nose-deep in a course on active real estate investing, researching markets, contacting various agents, lenders, and contractors, analyzing deal after deal, and wondering how I would ever find a cash-flowing rental property […]
Clarifying Return ON Capital vs. Return OF Capital In most passiveinvestments, the sponsor commits to paying the investors a specified percentage of their investment per year before the sponsor can start to collect performance fees. As such, these payments are referred to as “preferred returns” and the payment relative to the investor’s capital is the “preferred […]
You have evaluated the deal metrics of a prospective commercial real estate syndication and you like the deal. What’s next? Ask the sponsor for the offering documents. The “offering documents” are the instruments that create a legally enforceable contract among the sponsor, the investors, and the business entity (the issuer) that is issuing a passive ownership stake […]
Indianapolis, Indiana, metro is home to over two million people. It features a growing corporate base, highly educated workforce, world-class sporting events, high-end cultural attractions, as well as a consistently growing list of shopping, dining, and entertainment options. Residents benefit from an above-average quality of work-life balance, as reflected by consistently high national rankings and […]
Prior to discovering real estate syndications, like many, my idea of passive investing was mutual funds and looking at my statement a few times per year. For most of my professional career, I was a business owner in the IT industry. Working 80-hour weeks left no time for anything other than setting up a monthly […]
Many real estate investors are aware that high-cash value, or overfunded, life insurance policies are designed to maximize the cash value instead of the death benefit. The cash value growth is typically 5+% tax-free and can have uninterrupted compounding even if policy owners access the cash. It is an ideal place for investors to store […]
Disclaimer: Nothing in this post is financial or investment advice in any respect. Technical accuracy has intentionally been sacrificed for the sake of simplicity and relatability. One of the biggest news stories over the past few years has been the rise of cryptocurrency and its impact on the economy, technology, and, frankly, all of humanity. […]
If you talk with me about real estate, you will soon find out that I ama huge fan of passively investing in private syndications. However, my initial investments into syndications didnot go well. You may wonder why I trusted any syndicators after thoseexperiences. After witnessing my net worth plummet after each stock market crash in2000-01 […]
About a year ago, I wrote a blog post titled “The Inflation-Deflation Debate and What It Means for Real Estate Investors.” One of the questions I raised at that time was whether or not consumer price inflation would rise and force the Federal Reserve’s hand in raising interest rates and tightening liquidity. More importantly, if […]
A few years ago, I sold all of my multifamily properties as well as a few of my single-family turnkey properties. As I was getting ready to sell, I contacted Nate Busch, my CPA, and asked him how I could avoid the capital gains taxes on these assets. The market had done very well – […]