In the multifamily investing world, there are various classes of assets that are subjectively categorized based on the following characteristics: age, condition, demographic, etc. We wrote a blog post explaining each of the asset classes. Check it out here. One of the most attractive multifamily classes is Class C assets. These are characterized as older, […]
When we are just getting started into the world of real estate investing, we run across volumes of strategies and can easily be overwhelmed with our options. Without a mentor or coach, we will very likely spend time considering a strategy that is incompatible with our investment needs and goals. Most times it seems, working […]
“Price is what you pay. Vale is what you get.” – Warren Buffett We all recognize Warren Buffett, the Oracle of Omaha, as one of the wisest investors to walk the planet. His track record is impeccable and his habit of discipline in uncertain is unmatched. His statements and investment advice become famous and nearly […]
One key fundamental of multi-family syndications is rent growth. The appeal to investors of a new acquisition is the potential to ultimately grow rental income and, subsequently, net operating income and value. Ideally, this rental growth happens as soon as possible so that the operators are in the best position to sell sooner. However, there […]
In order to mitigate risk, one must first identify it. When it comes to apartment investing, a great risk to potential gross income (PGI) is vacancy. If vacancy is too high, it threatens cash flow and the ability to pay debt service. Astute investors identify up front what is the maximum vacancy (minimum occupancy) that […]
What is the Equity Multiplier? As passive investors, it pays to have a complete understanding of the menu of metrics provided to you by deal sponsors for multi-family assets. One of those metrics is the equity multiplier. This simply measures the percentage of the assets value that is equity. Calculation The equity multiplier is calculated […]
One of the biggest fears for people getting started as rental property investors is whether the tenant will pay rent on time or sit in the house as long as they can until they are legally forced to move. Maybe you know someone with this horror story. Sure it happens, especially in COVID times, and […]
Here at Robinson Capital, we are data driven. We love to identify markets and undervaluation by the data that we observe. We encourage our passive investors to do the same. In this way, we and our investment team are not driven by emotion or hope that our participation in the gold rush of the multifamily […]
We wrote about it in The Greater Responsibility of Multifamily Investing because we see this topic hardly discussed: the importance of our residents who live in our apartment communities. Yes, we invest in multifamily for wealth creation, but we love the communities in which we invest and our other reward is knowing that we are […]
Multi-family investments can be very rewarding. You have the benefits of scale – both in terms of cash flow, value and economies and efficiencies – and impact larger numbers of people with the improvements you make to your properties and its operations. After going through the hard work to learn about multi-family investing, there is […]
Back when I was a leasing agent in college, we would go around once a quarter tour properties in the highly competitive student housing market to better understand the competitive situation. Our apartment complex at the time was the top choice for off campus housing, however, due to the demand for student housing, our limited […]
You may already be familiar with the concept of apartment syndication. Investing in these multi-family assets has so many moving parts. As a passive investor, it is good to know about these moving parts and the hard work your syndicator or sponsor is doing to both protect and grow your investment dollars. One of the […]
As passive investors, it pays to know what to expect from a high performing private equity firm. When placing your hard-earned capital into an investment opportunity, you are essentially trusting that the firm will manage the money and the asset well in order to achieve the desired results. Not all investments or money managers are […]
The subject of resident safety and welfare is not often discussed in the apartment investing community. Here at Robinson Capital, improving communities in which we invest is a core piece of our mission, so we ensure to discuss our strategies for communities to win alongside us. A big piece of safety and tenant quality is […]
Passive investors have much to consider when evaluating the multifamily investment opportunity. Among knowing and trusting the sponsor and ensuring alignment of interest, there is one more basic piece that everyone should consider and understand prior to making their passive investment. That is understanding the suitability of the investment towards your needs. You see, there […]
One of the unique features of real estate investing is its awesome tax advantages. Real Estate Passive Income vs. Ordinary IncomeReal estate income is not taxed the same as ordinary income. Whereas ordinary income is taxed at the income tax rate, easily upwards of 20% depending on your annual income and filing status, passive income […]
The idea of becoming a passive investor in a real estate syndication is attractive for many who seek to diversify, save on taxes, have more money than time and work in their professional job and have no desire to become full-time real estate investors. Many professionals are attracted to passively investing in syndications because of […]
Real estate Syndications are the pooling of funds to buy real estate assets – in our case, our favorite is Multifamily – much larger than an individual can do on his or her own. Although all involved in the syndication, sponsors and limited partners, benefit from cash flow distributions, whether monthly, quarterly or semiannually, the […]
When you decide to passively invest with a sponsor in an apartment syndication, you are investing with that sponsor’s team. This is why it is essential to not only vet the deal, but vet the sponsor. When you vet the sponsor, you are looking for capabilities and experience on the team. One important skillset to […]
Apartment investing is a great way for working professionals to diversify, beat inflation and grow wealth. It is not as difficult to get into this realm or as exclusive as many like to think. (See ‘Do I have to be Accredited to Invest in Real Estate). What it does take is mindset, education and good […]
If You Fail to Plan… It is always good to have a plan for the unforeseen. As it is said, “If you fail to plan, you plan to fail.” This certainly should be the mantra for multifamily investing. Operating apartments is operating a business, and as such, there are operating expenses. Some of these expenses […]
There are a 3 general business models to multi-family investing. One of which, Value-Add, is very popular for its ability to create great wealth for investors. What is Value-Add?Value-add describes methods used to create equity by improving a property’s income. In multi-family, unlike residential, a property’s value is based on the income it produces. So, […]
When passive investors are seeking to invest in syndications, it helps to know how the deal is structured. After doing any sort of research or reviewing any investment opportunity offered by a syndicator, you will see a line item called “asset management fee.” What Is Asset Management?Asset management describes sponsor’s efforts in supporting the business […]
Many people think that to become a real estate investor, you have to quit your job, find deals, work with lenders, do your own rehabs, and so on. Sure, that is the path for many successful real estate investors, but not all. We most attribute real estate investing to an active involvement, but there are […]
What is it that makes increases the demand for housing in any local area? What leading indicators can help any investor identify future demand and great real estate investment opportunities? Well, here are three, and if your investing is principled with a focus on these three areas, you are much more likely to protect and […]