When Investments Fall Short
WHEN INVESTMENTS FALL SHORT Navigating Disappointments I remember a stock I bought back in 1999, which had such promise, but it did not perform as I expected. I lost a portion of my investment on that one. I remember a flip I did that just barely broke even after I had completed the renovations and […]
What Are Your Goals for Your Investments?
WHAT ARE YOUR GOALS FOR YOUR INVESTMENTS? Get As Clear As You Can Mike Jacobson and I are here to help you discover why you want to invest in apartments. We are eager to learn about your goals and to see if we will be able to assist you in achieving them. This is most […]
Finding Creative Solutions To Common Real Estate Problems
FINDING CREATIVE SOLUTIONS TO COMMON REAL ESTATE PROBLEMS Surviving A Hurricane Have you ever imagined what it would be like to be on an island in the middle of the ocean and knowing a hurricane was heading your way? A while back my wife and I were on a cruise to Bermuda, where a hurricane […]
Multifamily: A Stable Investment
MULTIFAMILY: A STABLE INVESTMENT So, you are considering investing in an apartment complex. You realize there are significant beneficial features of real estate investments when compared with others, such as stocks, mutual funds, or gold. AN IDEAL INVESTMENT Mike shared five of these benefits last week: Income, Depreciation, Equity build-up, Amortization of the loans, and […]
The Power of Compounding Interest
What Would You Do With $1,000,000 Tax-Free? THE POWER OF COMPOUNDING INTEREST What Would You Do With $1,000,000 Tax-Free? How often have you heard someone say, “I’d be a millionaire if I only had …”? It’s as if they had already given up hope. I once had a trigonometry teacher who told us he was […]
Always Be Learning
ALWAYS BE LEARNING Gain knowledge and Build relationships Two of us on our management team spent the weekend at a conference in Orlando. We engaged with about 700 other multifamily investors. This is something we do quite often. We regularly invest in our ongoing education. We are constantly sharpening our skills and building our knowledge […]
Cash Flow Is Number One
Cash Flow: Most Important The number one benefit of commercial multifamily assets is cash flow. Cash flow provides ongoing income. For our investors, this is a regular stream of passive income. We work hard managing our properties so they produce this income, month after month, year after year. The major factor in the bank’s underwriting […]
We can Actually Force the Appreciation of our Properties
Appreciation Appreciation is one of the biggest forces for growth in our properties. It comes in many forms. One of the forms of appreciation is simply Market Appreciation, the steady increase in values over time. But, we do not simply have to wait for the market to give us this growth or appreciation. We can […]
You Can Invest with your IRA or 401K
A few years ago, each of us discovered we can invest our IRAs and 401ks in real estate. We are not limited to investing in stocks and bonds and mutual funds. It seemed that way because that was all Fidelity, Edward Jones and Vanguard and the other investment advisors made available. But, the IRS regulations […]
Multi-family Properties Have a History of Stable Values
Volatility Stock prices go up and down, sometimes a whole lot. They are volatile. A painful example is the 2008 recession and the dramatic dip in stock prices. Other investment classes also have a lot of volatility — big ups and big downs. Commercial Multifamily Assets have a history of much lower swings in prices. […]
Real Estate Offers Tax Advantages Not Available in Many Other Investments
Tax Advantages Real estate has a number of tax advantages. One of the key preferential treatments tax-wise with real estate is DEPRECIATION. Depreciation is a required accounting method that spreads the cost of an asset over multiple years. The Federal Tax Code requires us to depreciate or take a paper loss on the property each […]
Amortizing Debt Increases the Equity in a Property
Paying down the principal on debt is a second way we grow the value of our assets. We use appropriate, but significant leverage to purchase our multi-family properties. We borrow money from the “banks,” often with agency funding from Freddy Mac or Fannie Mae. Each month we make a payment on these long-term loans. Part […]