In our last syndication series article, we explored how real estate sponsors make money by splitting profits with investors. Here, we’ll discuss the other way syndicators earn income — fees. Fees vary widely from deal to deal, both in type and amount. Here you’ll learn how to evaluate some of the most common real estate Continue reading
Real Estate
Syndication Series #004 – How Do Real Estate Syndications Split Profits?
Syndications are an attractive way to own real estate because investors can pool their money to purchase a larger property (or diversify across many properties). But how do the investors split the earnings from their investment? Here, you’ll learn everything you need to know about profits splits, preferred returns, waterfalls, and more. If you’re just Continue reading
Syndication Series #003 – How to Calculate Return on Investment (Equity Multiple, IRR, and CoC)
Before investing in real estate syndications, you need to be able to compare different offerings. Here, we’re going to learn about three of the most common metrics for evaluating real estate investments: (i) Equity Multiple, (ii) Internal Rate of Return, and (iii) Cash-on-Cash Return. By using each of these tools together, you can determine which Continue reading
Syndication Series #002 – What is a “Sponsor” in Real Estate Syndications?
The Sponsor of a real estate syndication is the party that organizes the deal. Unlike passive investors, the Sponsor takes an active role in the identification, inspection, and management of real estate. If you’re just getting started, check out Syndication Series #001: What Is a Real Estate Syndication? What Does a Real Estate Syndication Sponsor Continue reading
Syndication Series #001: What Is a Real Estate Syndication?
Are you thinking of investing in real estate but aren’t sure about the day-to-day management responsibilities? Or perhaps you understand the wealth-building potential of real estate but want a diversified portfolio? Today, we kick off a new series on real estate syndications — a powerful way for investors to gain access to the world’s original Continue reading
What Is Cash-on-Cash Return in Real Estate Investing?
Cash-on-cash return is one of the best metrics to evaluate real estate investments. While there are many ways to build wealth through real estate, reliable monthly income is one of the most exciting reasons to own rental properties. By calculating cash-on-cash return (CoC), you can get a clear picture of whether your expected cash flow Continue reading
The Difference Between Rule 506(b) and Rule 506(c) Private Placements
Are you thinking of raising money for your startup, investment fund, or real estate syndication? If so, be sure to remember the golden rule of securities law: every sale of securities must be (i) registered with the SEC or (ii) exempt from registration. Here, we’ll discuss Rule 506(b) and Rule 506(c) — two of the Continue reading
What Is a Cap Rate in Real Estate?
The capitalization rate — or “cap rate” — of a real estate investment is often referred to as the expected unlevered rate of return. Here, we’ll dive into cap rate basics and explore how cap rates compare with another common metric. Why Evaluate the Cap Rate for Real Estate Investments? The cap rate of an investment Continue reading
3.5 Ways Rental Properties Make You Money
Owning rental properties is one of the best ways to create long-term wealth. Unlike many other asset classes, where you only make money if the investment increases in value, rentals provide multiple ways to profit — all at the same time! Here, you’ll learn the three (and a half) ways rental properties will help you reach Continue reading
3 Common Mistakes When Forming a New Business
If you’ve decided to form a legal entity to operate your new business, you’re already on the right track. However, if you set up your company improperly, you might miss the tax benefits and limited liability protection. Here, you’ll learn three common mistakes new business owners make when forming a legal entity (and how to Continue reading