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The Benefits of Private Equity Commercial Real Estate Partnerships

Private equity commercial real estate partnerships offer excellent options for investors of all sizes, but the key is to select the right properties. There are many opportunities available in the commercial real estate market, and we have a proven system to identify the best investments and act fast to add these properties to the real estate [...]

Should I Invest In Commercial Real Estate or Residential Real Estate?

In the real estate investing world, you have two core options: commercial real estate and residential real estate. Which one you should invest in is a long-debated topic that we could spend a lot of time on, but we'll touch on the general pros and cons to consider as you are becoming a real estate investor.  [...]

Understanding Net Operating Income

The first question out of my mouth when someone is presenting a deal to me is: "What's the current net operating income (NOI)?" Net operating income is the amount of income that a property is throwing off after all operating expenses like property taxes, insurance, utilities, property management fees, and maintenance are considered, but before debt [...]

Multifamily Investing in 2020: Attractive to Both Active and Passive Investors

Multifamily properties have proven to be a lucrative investment for several real estate investors as well as a point of diversification outside of the stock market for any well-rounded investment portfolio. Firms searching to find great multifamily deals is a trend that doesn't seem to be stopping any time soon. The opportunity for excellent cash flow [...]

Debunking the Commercial Real Estate Liquidity Myth

There’s a popular saying in investment circles that “cash is king.” For many, this means that an investment’s liquidity is of paramount importance, and it may be. Conversely, it also implies that a lack of liquidity is a bad thing, but we choose to look at it a bit differently. It’s common for commercial real estate [...]

Location in Commercial Real Estate: Why it Matters

Location: Why it Matters in Commercial Real Estate Let’s be blunt; if you’re not considering location when choosing a commercial real estate investment, your investment is probably going to suffer because of it. In his book "Good to Great", Jim Collins tells the story of Walgreen's incredible run from 1975 - 2000. There were instances where [...]

Losing Money with Crowdfunding: What Would That Look Like?

Every investor has the intention to maximize profits when putting money into new ventures and projects. While there are many times when investments are successful, you also need to be prepared for potential losses as well. Losing money with real estate crowdfunding is something that is feared by many new investors. But you don’t have to [...]

5 Things You Should Consider Before Investing Passively in Commercial Real Estate

Commercial Real Estate can be a fantastic investment because of the capability to have reliable, passive returns as well as the potential for upside in the commercial property purchased. This article considers that you are investing passively in a deal. If you are a real estate investor looking to be an active manager of commercial real [...]

Measuring Private Equity Real Estate Returns: IRR vs. Equity Multiple

In order to measure an investment’s return, it is necessary to use the right tools.  Yet, there are many variables that can complicate this task, exposing the deficiencies of each tool and causing them to either skew the results or to not tell the entire story. In commercial real estate investing, two of the most widely [...]

Why Business Owners Should Invest in Passive Real Estate Investments

Everyone has heard that Real Estate can be a great investment tool for building wealth and a secure financial future for you and your family. As business owners, one of the core issues we can find is that we’re just too busy building our main business to now begin researching, purchasing and managing a real estate [...]

Commercial Real Estate Opportunity Zones: An Investment Primer

Cities are exciting, vibrant places.  They’re teeming with energy and, while it’s not noticeable on a day to day basis, constantly in a state of change.  In some cases, change can be a powerful force that improves the lives of many. In others, it has the potential to leave a city’s most vulnerable residents and communities [...]

The Commercial Real Estate CAP Rate Trap

One of the most important metrics an investor looks at when analyzing the acquisition of a piece of commercial real estate is the CAP rate. The CAP rate is the property’s net operating income (NOI) divided by its hypothetical purchase price. It’s a straightforward way to figure out how many times “earnings” a property is being [...]

Tax Implications of a Passive Real Estate Investment

The primary benefit of a passive real estate investment is that an individual investor can leverage the relationships, resources, and expertise of an experienced sponsor to gain access to a commercial-quality asset that they wouldn’t otherwise be able to invest in.  But, like any investment, there are tax implications – positive and negative – that should [...]

Signs You Should Avoid a Private CRE Deal

There is a common misconception that buying and managing commercial real estate is easy. It isn’t.  To be done correctly, a significant amount of resources need to be invested in the research and analysis of a property’s market and financial statements to ensure the transaction meets acceptable risk guidelines. For an individual considering an investment in [...]

The Ultimate Guide to Net Leasing Investing

As a major component of our core investment strategy, we seek to own and operate grocery store anchored shopping centers.  Whether the property has one tenant or many, we invest a significant amount of time looking at the structure of the existing leases before committing to a deal. Lease structure can vary significantly from one tenant [...]

How to Successfully Invest in Private Equity CRE Deals

Every investor has a preferred asset class.  Some like stocks, some like bonds, others like precious metals, cryptocurrency, or commodities. No matter the investment type, they all have the same objective, to build wealth. While each asset class has its relative merits, we firmly believe - and have built a company around - the idea that [...]

Understanding the Capital Stack of a Real Estate Investment

At the risk of going too-far back to basics, here is some Business 101: to operate, businesses need capital. When starting up, expanding, or purchasing significant assets, they raise that capital from investors. The terms on which investors commit capital reflect the degree of risk investors are willing to bear, and conversely, the returns the investors [...]

The Truth About Real Estate Investing for Passive Income

Real estate investing has an unwarranted reputation as a relatively low-effort source of passive income. Buy a property, set aside some maintenance reserves, sign up some tenants, and sit back while a steady stream of cash rolls in, right? Well, no. In fact, passive investments of the type we just described represent something of a unicorn [...]

Conducting Due Diligence on a CRE Sponsor

506(c) syndication and real estate crowdfunding have changed the face of the passive CRE market forever. The days of requiring personal relationships with real estate operators are long gone, which has opened the door to a far more versatile arena. However, a lack of institutional screening has put individual investors under immense pressure to conduct due [...]

Evaluating Private Real Estate Investment Opportunities

When considering any type of investment, it’s a best practice to perform a significant amount of due diligence before deploying your hard earned money into it.  Depending on the opportunity, this can be tough because the evaluation metrics for each asset class are different and it’d be incredibly time consuming to know all of them.  For [...]