Category: Passive Investing

Calculating the IRR of a Passive Investment

One of the key metrics of investment returns is the internal rate of return, or IRR. This concept goes beyond the annual rate of return which simply measures the overall return through cash flow and the sale of the asset and divides it by the number of years. Average Annual Return (AAR) For example, consider […]


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How to Create A Backup Plan For Selling a Home – Florida Rental Update

This has been a crazy few months! As you may know, I sold one of my rentals a few months back in February 2022. At the time of listing the house, we had multiple competitive offers within days and about 15 to choose from by the end of the week. We were under contract by […]


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Trade Journal 02: What to Expect From Q3 Earnings Season 📈

It is 2022 and a lot of weird things are finally happening. Inflation is running rampant, real estate is cooling and job growth is slowing. The Fed has executed 3 rate hikes this year. The hot stock market of the last two years has hit the brakes in 2022 and anyone closely involved is keeping […]


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What Everyone Should Consider Before Passively Investing in Multifamily

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 […]


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What is a Private Placement Memorandum?

A private placement memorandum (PPM) is a legal document required by law for syndicators who are raising monthly through private sources using one of the exemptions from registration requirements allowed by the Securities and Exchange Commission (SEC). Also known as an offering memorandum, this document is provided to potential investors to document and communicate the […]


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How To Take Advantage of Market Volatility 📈

Now is a very difficult time to be in the stock market. If you held your stocks through the year, you could have seen declines of 20-50%, or worse. The S&P 500 is down 25%. This means that on average, anyone invested in this index or mix of underlying stocks would have lost a quarter […]


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Florida Rental #2 Update: Under Contract ‼️

Hello Friends. As you may remember, I decided to sell both Florida rentals earlier this year. Find the backstory on my crisis here. A few months back, we successfully closed on selling rental #1 and even thought it was not long ago, it was a totally different real estate market. House #1 received multiple offers […]


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Tax Advantages in Multi-Family Investing

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 […]


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The Problem With Diversification

Diversification is good. Spreading your wealth and wealth-building tools across various asset classes and types of assets within that class could be a smart thing to do. But there are a few problems with this mindset. Limited Capital: All of us have limited investment capital; some more than others, some less than others. To spread […]


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3 Ways to Protect Yourself as a Passive Investor in a Real Estate Syndication

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 […]


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The Importance of the Exit Strategy in Real Estate Syndications

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 […]


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The Purpose of the Asset Manager In Your Next Apartment Investment

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 […]


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The Importance of Alignment Of Interests When Passively Investing in Apartments

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 […]


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What is Value-Add In Multi-Family Investing?

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, […]


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What is An Asset Management Fee In A Real Estate Syndication?

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 […]


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Becoming a Professional Passive Investor

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 […]


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3 Important Characteristics of High-Quality Asset Managers

If you have not read What is Asset Management?, check it out to familiarize yourself with this key function of your sponsor team and why the role is essential to managing any apartment investment. Recognizing the importance of a solid asset management team, what does it take to be a good asset manager? As passive […]


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Stocks Are Flying, But Watch Out ⚠️

July was a big month for stocks, as they rebounded from very depressed levels. This stock activity may attract more investment activity, but beware. There are still fundamental concerns and worries – inflation, corporate health, war- the list goes on. What is initially seen as a good earnings season can be a surprise to investors […]


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The Value Of Trust In Apartment Syndications

I am excited to share that I will am participating in my first multi-family real estate investment as a Limited Partner in a Real Estate Fund. Investing as a passive investor is a great way to learn the apartment syndication business and grow wealth at the same time. After months of searching for the right […]


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Selling Options for Passive Income (July 2022)

In our latest video release, I share my stock option picks for monthly passive income in July. This month, I will have achieved my highest monthly income from selling options since I started three months ago. I discuss my picks, Amazon and Rivian and my rationale for why I to sell the options that I […]


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Real Life Bubbles – Cryptocurrency and Voyager

In our latest video release, I share the shocking update of the Voyager bankruptcy and the cryptocurrency bubble that led to it. I also warn investors to, prior to transferring funds to a brokerage, make sure they look for these clues that they are working with a reputable brokerage company. Summary 1️⃣ The excitement in […]


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The Low-Risk Approach To Debt Financing An Apartment Syndication

When taking down an apartment investment, sponsors raise equity through their investor network and finance the majority. Because the cost of debt is lower than the cost of equity, the majority of the financing comes through debt. Usually, syndicators will raise at least 20% of the value of the asset with equity and finance no […]


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How To Invest In Real Estate While Working A Full-Time Job

One of the primary attractions to my site, blog contents and guest appearances on podcasts is that I am a working professional while also investing in multifamily real estate. It has not been an easy journey, and even today it is not without challenges, but it is easily possible. My goal is to help working […]


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Why Should I Consider Apartment Syndications?

If you are new to apartment syndications, I recommend you check out What Is Multi-Family Syndication, which should be a helpful resource and introduction into how this niche works and how many have become financially free by investing in apartments. Now that you are somewhat familiar with how it works, why would any working professional […]


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The Power of Compounding Over Time

In our latest video, I discuss compounding and how powerful it is on your returns when you both reinvest your income and allow for time for your investment to grow. Short Summary 1️⃣ We explore what happens to your $50,000 investment after 10 years if you reinvest your 8% annual return. 2️⃣ Reinvest and Think […]


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