Friends, check out this video from Marcus and Millichap. Inflation, measured using the Consumer Price Index (CPI) is up 7.1% from last year. This is the greatest gain since 1982! According to Marcus and Millichap, the following are the top 3 drivers for inflation: 1️⃣ Supply Chain Problem The global supply chain problem is not […]
I am ecstatic to have had the chance to join Sam Wilson on the How to Scale Commercial Real Estate Podcast. On the show we discussed a few things every passive investor should know. Here are the cliff notes: 1️⃣ Delay instant gratification and put your extra money to work We all want things now. […]
Buying apartments is risky. Perhaps, slightly riskier than buying a house or a car. But similar to those purchases, good investors looks for hints and red flags. Aside from due diligence, which happens after an asset is under contract, there is one very simple thing that I do after I have underwritten, toured and/or begun […]
Today’s multifamily market is tough. The good assets are highly competitive amongst buyers and are bid up to exorbitant numbers that should not make sense from an investment standpoint. Because investors are chasing real assets, attempting dodge inflation and to get away from volatile stocks, they are now in the multifamily space, looking to get […]
Whether you are an apartment operator or a passive investor, it is wise to know the basic two goals of money management. Such an understanding should allow for more effective decision making and identification of risk. 1️⃣ Capital Preservation Capital Preservation simply refers to protection of capital. This identifies the goal of protecting principal and […]
Of all the metrics used in underwriting multifamily assets, it is arguable that Debt Service Coverage Ration (DSCR) is the most important. Why? Aside from lenders having a minimum required DSCR, it keeps the operator and his or her investors out of trouble by measuring the ability for the property’s income to cover its debt […]
We work very hard at our jobs. Some of us are engineers, project managers, accountants, corporate lawyers, IT specialists, the list goes on. My LinkedIn network includes thousands of professionals who fit these categories. What we have in common are the desires to grow in our careers, add value to the world and achieve financial […]
Hello, Friends. I am super thankful to have had another great opportunity to be interviewed on a podcast dedicated to help educate others on investing. This time, I joined Allen Lomax on the Real Estate Investing Abundance podcast. What a pleasure it was speaking with Allen and his audience on the what it looks like […]
When investing in real estate, regardless of single family or multi-family or actively or passive investing, it is important to know and account for all potential expenses. In doing so, recognizing any deferred maintenance is key. What is Deferred Maintenance? Deferred maintenance is a term used to describe past-due maintenance. These are routine services or […]
Welcome to 2022! To set the tone for a great and fruitful year, I want to share a mindset refresher. One that will allow us both to kickoff the year right with our financial goals and confidence. So here is the story. Recently in a board meeting I heard local a wise businessman who I […]
Since I embarked multifamily investing journey in mid-2020, it has been a wild ride. From forming Robinson Capital, writing over 240 blog posts about real estate investing, passive income and apartment syndication, making my own first passive investment and countless networking sessions, guest interviews and a conference, I am thankful for the traction and the […]
Commercial real estate brokerage Greysteel recently published a Spotlight on Downtown Fort Worth, TX, one of the hottest markets for multifamily real estate in the country. As you will see from the data below, there is reason for the immense interest in real assets in this market. Demand for Housing The demand for housing in […]
We have written about Active vs. Passive investing and Single families vs. Multifamilies, but the choice between actively investing in single families and passively investing in multifamily can actually bring someone to a fork in the road. I have done each and both are great paths to wealth creation through real estate, but they are […]
We tend to understand vacancy and how it negatively impacts the multifamily investment. For every unoccupied unit, there is a loss of revenue because that unit is not performing. Managers want to fill up their units and limit turnaround in order to avoid costly vacancies as well as the added cost of turnovers. There is […]
Both experienced and new investors are chasing the same thing, real and dependable returns that can beat the threat of inflation. With the increase of trillions of dollars in our money supply and inflation currently hovering at 6% this year, the trend continues to threaten the value of our dollars. This, compounded with the volatility […]
As a passive investor, it pays to know your goals. Without a goal, it is difficult to design a roadmap and it certainly is a challenge to stay motivated without a target for what you want to achieve in the first place. By now, you should understand the value of passive income and you are […]
You have likely noticed the skyrocketing prices and “values” of real estate. Whether it is your personal single-family, your portfolio of rentals, or the multifamily asset class, especially in hot markets, things are through the roof. There are two schools of thoughts on how to navigate this situation. Some advise to sit out and not […]
As passive investors in real estate syndications, the amount of jargon can be overwhelming. Specifically, when it comes to investment returns, there are multiple ways to measure the potential wealth creation from an opportunity. Most commonly are three metrics: Cash on Cash Return (CoC), Average Annual Return (AAR) and the Internal Rate of Return (IRR). […]
Many individual investors struggle with the idea of partnering with others for real estate deals. They may have gotten into real estate as an alternative to stocks and with the same mindset of being an individual investor. For different reasons, they may oppose or may have never considered joining forces with a team to make […]
As an apartment investor, whether active or passive, it pays to know and understand where your capital expenditure dollars are best spent. Realistically, you want to make every investment yield the highest return. 1️⃣ Units Primarily, those dollars are best spent on units, because residents pay for important features that attribute to higher-quality living. These […]
Have you ever played the game where you imagined what you would do with your next $100,000? If you are like me, the idea of a new car or material possession likely popped into your head. While those are great and fun to buy and own, the practical side of you likely responded with the […]
Each of us have varying degrees of risk aversion and fears when it comes to learning a new topic or trying something new. Especially because of our backgrounds, education and childhood rearing much of who we are is ingrained within us and hard to change. When it comes to financial education, it is extremely difficult […]
When seeking to passively invest in multifamily assets, one will have to pay special attention to the property characteristics. Recognize that not all multifamily properties are created equal, and as such, based on these characteristics, demand, improvement opportunities and future values will vary accordingly. Below are just three prominent features of multifamily housing that make […]
Just as with any large or small decision in life, when it comes to investing, there are so many choices to choose from and variables to consider. Which asset class to choose; which type of asset within that class; what are your goals and strategies? The list of questions can seem daunting and never ending. […]
I’m super blessed to have had the opportunity to be a guest for the second time on Advanta IRA’s webinar to talk about how working professionals can invest in real estate. For part 2 of the session, we switched it up and spent time to discuss something I know and love well: marketing. I gave […]