Understanding Waterfalls in Passive Real Estate Investments: A Key to Smarter Investing
When evaluating passive real estate investments, understanding how profits are shared is crucial. This concept, often referred to as the “waterfall distribution,” dictates the distribution of returns and can significantly impact your overall earnings. The Investor-Friendly Waterfall Distribution A truly investor-friendly waterfall distribution prioritizes returning all invested capital to the investors before the General Partner […]
A Game-Changer for Multifamily Property Management: AppFolio Property Manager
We recently transitioned from RealPage to AppFolio for our multifamily property management software, and the difference has been remarkable. AppFolio’s user-friendly interface and ease of use have significantly decreased the training time needed for our staff to become proficient with the software. Key Features of AppFolio include: These features have significantly improved our efficiency and […]
The Importance of Value-Add Execution in Real Estate Investments
In today’s challenging real estate market, the phrase “value-add” has become a crucial aspect of successful investments. However, many distressed multifamily deals share a common failure: the lack of actual value creation. Real Estate Private Equity investors often purchase value-add properties with plans to renovate every unit, yet two years later, find themselves having done […]
Uncover Your Wealth Potential Through the BRRRR Strategy
FortuneBuilders notes that investing in real estate is a popular method of building wealth. One of the most popular and successful strategies for real estate investors is the BRRRR method — Buy, Rehab, Rent, Refinance, and Repeat. This strategy can be a very effective way to grow your portfolio and increase your profits over time. […]
Sierra Heights – A Triumph in the Face of Adversity
In the often volatile landscape of real estate private equity, success stories are a testament to strategic vision and operational excellence. The journey of Sierra Heights, a 136-unit multifamily property in Irving, TX, stands as a beacon of triumph amidst challenges. Purchased in May 2021 and sold in July 2023, the project highlights our ability […]
The Power of Value-Add Construction in Dallas-Fort Worth’s Transformation
Dallas-Fort Worth is a thriving and rapidly expanding metropolitan area, and the key to its transformation lies in the potential of value-add construction. This innovative approach revitalizes communities, uncovers hidden treasures, and promotes sustainable solutions, making it a driving force in shaping the future of Dallas-Fort Worth. This blog post will explore how value-add construction […]
A Look into Asset Management
Real estate asset management is a crucial part of successful property investment. It’s more than just the day-to-day tasks handled by property managers; real estate asset managers take a broader, strategic approach to ensure the long-term success of an investment property. The whole idea is to accumulate, protect, and maintain wealth over time by acquiring, […]
Can you buy apartments with no money?
Maybe, but probably not. Every time I see an ad on social media claiming to possess the secret to buying large multifamily assets (5 or more units) with no money out of pocket I have to resist the urge to comment. And on top of that, they claim you can do it with no experience. […]
Evaluating Real Estate Investments
Evaluating any real estate investment is fairly simple. Take the gross annual income, subtract expenses, consider how much the annual debt service and acquisition will cost you, and then decide if the profit leftover is worth pursuing. Next, we will break down the most common expenses you will encounter and how to underwrite these conservatively. […]
