Active investing in multifamily real estate
The belief that real estate requires a substantial upfront investment can be true for many high-value properties in desirable locations. While real estate often requires significant upfront investment, lenders generally view multifamily properties as a lower-risk asset class, making financing options more accessible for experienced investors or those acquiring stabilized assets with strong cash flow. […]
Why single-family investors are diving into apartment communities
Many investors are attracted to real estate investing because there are many different ways to participate. There are many product types and investing strategies, making real estate one of the most diverse investment vehicles. Investors can pick whichever type of real estate property they are interested in, whether it is office, retail, industrial, or residential. […]
How to become an accredited investor: Step-by-step
Accredited investors are individuals or entities that meet specific financial criteria, allowing them access to exclusive investment opportunities. Accredited investors have access to investment opportunities unavailable to other real estate investors. Although the risk involved with such investments is higher, it can also mean higher rewards. Experienced investors may find these opportunities attractive. However, some […]
How to calculate cap rates on multifamily real estate
WHAT IS A CAP RATE? The capitalization rate (cap rate) is a quick way for investors to measure the potential return of an income-generating property. It is expressed as a percentage and helps compare different properties to see the potentially better investment. The cap rate is calculated by dividing a property’s net operating income (NOI) […]
REIT vs multifamily syndication: Real estate investing
While many investors want to invest in real estate and enjoy the benefits of passive income, not everyone is interested in becoming a landlord. Owning and managing rental properties involves handling residents, maintenance, and unexpected situations, which isn’t for everyone. Fortunately, there are options for those who want to invest in real estate but don’t […]
Practical application of specific key metrics for investors (FMV, DSCR, & LTV)
Gas: $49.75 Milk: $3.79 Groceries: $226.00 Understanding key metrics in real estate investing: Priceless. Decoding real estate industry jargon might be easier than you’d expect. Sure, EGI sounds a lot like PGI, and FMV reads like a radio station. However, memorizing these key terms can be simple with enough repetition—knowing how to apply them is […]
What metrics do multifamily investors use? Pt. 2
Key metrics act as measurable benchmarks for investors, allowing them to compare different properties, analyze trends over time, and identify areas for improvement. Metrics such as loan-to-value ratio (LTV) and debt-service coverage ratio (DSCR) enable operational efficiency, helping to secure financing, optimize returns, manage risks, enhance resident satisfaction, and improve the overall management of multifamily […]
What metrics do multifamily investors use? Pt. 1
Investors new to real estate often ask about the metrics they should know for evaluating their deals. While some firms might value specific metrics over others, investment real estate provides a standardized way to assess and compare an investment’s financial behavior, associated risks, and potential returns through quantitative data. In multifamily real estate, these performance […]
What are the pros and cons of real estate syndication?
There are many reasons why real estate is such a popular choice among investors. It offers a tangible and physical asset that could appreciate over time, and with the right strategy, provide stability and profitability. Unlike other investment vehicles that can fluctuate based on market conditions, real estate often exhibits more stable, long-term growth. One […]
May 2025: Key terms in multifamily real estate investing
Whether it’s human capital or venture capital, accredited investors leverage their experience, financial assets, or anything that confers value every day. As defined by SEC Rule 501 of Regulation D, an accredited investor is an individual with an annual income of at least $200,000 (or $300,000 for joint income), or a net worth of at […]