As more and more entrepreneurs are looking for unique ways to raise the capital needed for their investments, crowdfunding has become more popular than ever before. The Internet makes it easy to connect with like-minded individuals, and tech-savvy investors have been quick to take advantage. Eliminating the Need for Accredited Investors Accredited investors account for …
A little over four years ago, my brother and I walked into a ugly house built in the 1800s that had an obsolete floor plan and over a century of deferred maintenance. That junky old house was the first piece of true investment real estate we ever bought. That property kicked off the journey that …
Household debt in the United States has now surpassed its 2008 peak. Meanwhile, housing inventory has plummeted and homeowners are increasingly refusing to budge from their homes. What’s going on? A perfect storm of economic forces are squeezing existing homeowners to stay put and preventing first-time buyers from purchasing. While longer ownership might seem benign …
We’re taught that we should never underwrite a commercial real estate deal based on future performance—but always on current performance. This is great advice, but sometimes it doesn’t match reality. Here’s an extreme example to make my point: What if you’re looking at an empty 10-unit apartment building? Technically, the net operating income (NOI) is actually …
I see a major shift in the real estate market as we become even more of a renter nation. Why is it happening? Is there a silver lining to this economic cloud? According to the U.S. Census Bureau, American homeownership plunged again in 2017 to its lowest rate since 1965. After the peak of 2004, when around …
Although using private money is a smart way to invest in real estate without using your own cash, it’s not a perfect solution. Let’s explore some of the risks of using private money, so you’ll get the full picture and decide if this is an avenue you want to pursue. 4 Risks and Drawbacks to Using …
A younger person recently asked me, “After 30 years of real estate investing, what would you do differently?” It’s a pretty good question, and it really made me think. At first, I was thinking like Frank Sinatra that I wouldn’t change a thing because “I did it my way.” I quickly woke up and realized …
This is the story of how to add $1M to your net worth in 5 years by purchasing a 21-unit apartment building at fair market value, raising the rents by just $100 per unit and controlling costs. When I first got started with real estate investing, I chose to flip houses. I felt like I …