There are two primary financial metrics when evaluating a multi-family investment opportunity. The first is Cash on Cash (CoC) and the other is Internal Rate of Return (IRR). Most non-real estate investors will seek to understand the return on investment (ROI) to evaluate the deal, however, ROI metrics will not work in analyzing real estate. In the world of real estate, Cash on Cash and IRR are … [Read more...] about What Are Cash on Cash Returns?

In the past, one of the primary ways private companies raised funds for real estate investing was through Rule 506 of Regulation D. Regulation D is an exemption from registering securities with the Securities and Exchange Commission (SEC). When Title II of the Jump Start Our Business Startups (JOBS) Act took effect in September 2013, Rule 506 of Regulation D was split into 2 separate exemptions, … [Read more...] about What is a 506(c) Offering?

One benefit of real estate investing is the opportunity to raise capital from investors to buy larger properties and reduce risk for all involved.  Through money pooling, investors are able to own properties that they would not normally be able to purchase on their own.  Investors who have the capital to purchase a property without investors, are still likely to invest with others to … [Read more...] about What is a 506(b) Offering?

As we see the effects of how the coronavirus impacts the health and safety of people throughout the world, and the consequences this will have on the world economy, there is a lot of uncertainty.  Deal sponsors are looking to make the right decisions in maintaining or adjusting their investment strategy with the mission to protect and grow investors capital. During times of uncertainty and stress … [Read more...] about Applying USMC Leadership Traits and Principles to Real Estate Deal Sponsors