Real Estate vs. Stocks vs. Bonds
What should someone invest in? The Stock Market? Fixed Income Bonds? Real Estate? Let’s dig into the key differences between stocks, bonds, and real estate as investments. We will look at what each of them are good for, and what they are not good for. Bonds A bond is a debt instrument. Whomever you buy […]
Who to Invest With? Understanding the Importance of Strategic Partnerships
When investing in real estate with any number of partners, it is important to understand the complexity behind this decision. Whether you are interested in partnering with a fund, a family member, or a group of friends, there are hurdles that will need to be overcome that can impact the future of the investment. Therefore, […]
The Different Types of Real Estate Properties
Real estate property types can vary; especially when it comes to what to ask before making a purchase. With that being the case, as an investor, you should be aware of these differences to know what you want to have in your portfolio and what is suitable for your particular strategy. Raw Land / Development […]
Four Basic Steps To Get Invested in Real Estate
Getting invested in real estate is not always easy, especially when you don’t have a clear-cut path. Here are four basic steps to consider when looking into investing in Real Estate. 1. Strategy To hit a bullseye, it helps to know where the target is. Here are a few questions, everyone should consider when putting […]
Lean and Mean: How Small Funds Outperform Big Funds
“The only way to win is to learn faster than anyone else.” – Eric Ries It’s a simple quote, but powerful. Ries is the author of the New York Times bestseller The Lean Startup: How Today’s Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses What this book says, and what you probably already know, […]
How Purchase Contracts Work
Every purchase and sale of real estate requires a written contract. Tenant agreements may be legal with a handshake, but not purchase agreements. The US Statute of Frauds requires a written contract every time real estate changes hands. Most state Boards of REALTORs promulgate a standardized purchase agreement contract, available to the public and used […]
How Real Estate Loans Work
Some real estate investors buy a property using 100% cash, but a majority use debt. A loan may come from a bank, an institution, or a private money lender. A loan using real estate as its collateral is often referred to as a “mortgage,” a word whose latin roots mean “engagement until death.” Real estate […]
Understanding CMBS and CLO Markets
Commercial real estate lending can be a complicated concept to understand, especially for the novice investor. Most individuals in the industry are familiar with the traditional methods of lending and debt; however, as a developing investor, it is important that you understand the depths of the debt market for commercial real estate. With that in […]
The Family Investment Mindset
Investors might employ any number of strategies to develop their investment plan, and the approach will vary depending on individual goals. Some investors are interested in building wealth quickly, and some are interested in maximizing leverage to grow their portfolio. Meanwhile, others are seeking a more long-term stable strategy – It all depends on the […]
The Problems with Internal Rate of Return (IRR) Led Investment Strategies
The use of internal rate of return, or IRR, has seen a surge in visibility over the past several years. There is good reason for this. It’s benefits are helpful when comparing the returns of different investments, HOWEVER, there are serious limitations. Title III of the Jumpstart Our Business Startups (JOBS) Act allowed real estate […]