When investing as a passive partner in a real estate project, cash distributions are computed and made using a ‘waterfall,’ most of which are constructed according to somewhat uniform criteria, and some are more creative. Real estate syndications use these “waterfalls” to set up and pay principals and investors. Once a developer sets up a […]
EVERYTHING YOU SHOULD KNOW ABOUT REAL ESTATE WATERFALLS Read More »
This is an introductory paper to the concept of waterfalls and interest, rates of returns, etc. And by the end of this white paper, you will be able to know what a waterfall is in legal terms, its common types, how to measure it, how it affects interest and how you will be able to
THE REAL ESTATE SYNDICATION WATERFALL – WHITE PAPER Read More »
The eight crucial components delve further into basic principles needed by each developer, regardless of real estate form, to organize a transaction, analyze its feasibility, and communicate the offer to investors and financiers. These ideas are fundamental to any deal an investor could encounter, making them the eight keys to unlocking each doorway in real
8 FINANCIAL PRINCIPLES IN INVESTING IN REAL ESTATE: THE SUMMARY Read More »
Net Operating Income Understanding Net Operating Income There are numerous relevant metrics in commercial real estate, but few are more important than net operating income (NOI). The NOI is used to demonstrate how much revenue a certain investor would be expecting to get from a project. It is a comprehensive figure that considers all revenue
8 FINANCIAL PRINCIPLES IN REAL ESTATE INVESTMENT Read More »
In a real estate syndication agreement, you combine your money with the funds of the other limited partners to participate in a property as a passive investor (limited partner). You have no management responsibilities if you invest with a group of people in a large commercial building like an apartment complex. The management of the
SYNDICATION STRUCTURES IN REAL ESTATE AND HOW THEY WORK Read More »
The Introduction A well-diversified investment portfolio should include private real estate, yet it remains a challenging and unfamiliar asset class for many investors. This book lays out a step-by-step plan for accredited investors considering investing in private real estate. Let’s start with the basics: how personal real estate benefits portfolios, the most typical investment methods,
THE ULTIMATE GUIDE TO COMMERCIAL REAL ESTATE INVESTMENT Read More »
Perhaps you’re wondering where to start if you want to invest in huge multifamily apartment buildings. What are the pros and cons of real estate investing in another state vs. investing in properties on your own? Buying real estate in a familiar area may seem like the more prudent and secure option at first. It’s
USING SYNDICATIONS TO INVEST IN OUT OF STATE REAL ESTATE Read More »
In private real estate investing, a preferred return is the minimal rate of return an investor must obtain before an investment manager may earn a performance fee. In real estate investing, the recommended return is often between 6 and 9 percent, depending on the risk of the venture. You may think of this as an
A GUIDE TO PREFERRED RETURN IN PRIVATE REAL ESTATE INVESTING Read More »
Before deciding with whom to invest, investors should have a thorough understanding of the fees charged. A devoted team is essential for success in real estate investment, and fees help pay for that team. Someone must locate the property, negotiate the price, create marketing materials and legal documents, raise equity, manage the property’s day-to-day operations,
13 MUST KNOW FUNDAMENTALS OF CRE INVESTMENT FEES Read More »
