Welcome to Investor Insights, The Passive real estate investing blog
Market news and education for the passive real estate investor. Providing insight and market commentary into passive investing in Multifamily Apartments, Commercial Real Estate and, Self Storage.
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How to Use Retirement Funds to Invest Passively in Real Estate
Investors traditionally hold stocks, bonds, and mutual funds in their retirement accounts. But, for people looking to diversify their retirement portfolios, other options - like passive real estate investments - exist. As such, we’ll use this article to explain how...
Investing in Self Storage: REITs vs Syndications
As a commercial property type, self storage offers investors outstanding long-term growth and cash flow opportunities. These properties tend to have far lower operating costs than their multifamily counterparts, and renters tend to stay put once they occupy a...
Tax Implications of Investing in Real Estate Syndications
In commercial real estate, raising enough money for a deal can pose a major obstacle. Fortunately, real estate syndication models offer a creative funding solution. Syndications allow multiple investors to pool their money to fund a given project. This pooling...
An Overview of Equity Waterfalls
When investors jump from residential to commercial real estate, they face a whole new - and often confusing - vocabulary. Many of these new terms revolve around commercial financing. In particular, the concept of equity waterfalls confuses many new...
Understanding Property Taxes in Commercial Real Estate
Property taxes make up a significant portion of a commercial building’s operating expenses. As a landlord or investor, failing to understand - and plan for - these expenses can crush your net operating income (NOI). And, when NOI takes a hit, a commercial...
Is out of state real estate investing too difficult?
If you are considering investing in large multifamily apartment properties, you may have questions about how to begin. Is investing in out-of-state real estate a good idea, or should you keep your investments closer to home? At first, it may seem safer and more...
Investing in Apartments as a Limited Partner: What You Should Know
Investing in multiple-unit residential real estate as a limited partner can be a wise and lucrative investment. Many successful REIs invest in out-of-state apartment buildings or complexes through reputable and experienced syndications. Especially if...
Using the Commercial Value Formula in Real Estate
With single-family homes, determining property value proves fairly straightforward - just look at market comps. But, what about a commercial property with no similar buildings in the area? How can investors accurately estimate value for these unique properties? To...
Analyzing Commercial Real Estate Deals: IRR and the Equity Multiple
For new investors, the commercial real estate industry seems to have a language of its own. And, if you don’t grasp this language, reviewing potential deals can pose a major challenge. More precisely, if you don’t have an intimate understanding of these terms and...
What to Know about Investing in Institutional-Quality Real Estate
Institutional investors, such as life insurance companies and pension funds, have historically been the only investors to have access to some of the most premier commercial real estate deals. And understandably so. These institutions will often invest large...
Important Metrics for a Multifamily Apartment Investor to Know
Analyzing a single-family investment property generally proves straightforward. Do rents cover expenses and debt service? Does it provide regular cash flow? These same questions certainly apply to multifamily investments. But, due to their A) scale and B) lack of...
Analyzing a Self Storage Investment: The Underwriting Process
It’s undeniable: Americans have an addiction to self-storage units. Driving down highways, through cities, or along country roads, an incredible number of these facilities exist. As an investment opportunity, they offer significant upside. But, many new real estate...
Active vs. Passive Investing: Which Real Estate Strategy is Right for You?
Real estate investing has many benefits, from monthly cash flow to appreciation, tax benefits and more. “Buy rental property, then just sit back and collect passive income!”, people are told. A well-intentioned investor who follows that advice might turn around and...
Understanding Real Estate Professional Tax Status
Real Estate Professional Tax Status New investors often hear of the tax advantages of real estate. However, many of these same investors face disappointment when they realize that real estate losses generally don’t offset their other income. The real estate...
Acquisition Due Dilligence
Acquisition Due Diligence Finding the right asset to make an offer on is only the first step of actually becoming the owner of real estate. Behind the scenes, and before closing, there is a lot that happens to ensure the property is fits as an addition to your...
Understanding Risk-Adjusted Returns in Commercial Real Estate
Most commercial real estate sponsors will tout their ability to achieve superior “risk-adjusted returns” for investors – but what does that actually mean? It’s one of the most basic premises in finance, but one that few investors truly understand. A risk-adjusted...
Investing in Out of State Real Estate through Syndications
If you are considering investing in large multifamily apartment properties, you may have questions about how to begin. Is investing in out-of-state real estate a good idea, or should you keep your investments closer to home? At first, it may seem safer and more...
How To Use A Self Directed IRA To Invest In Real Estate
Investors frequently ask about using retirement accounts to invest in real estate. More precisely, people often want to know if they can directly invest in real estate with retirement funds. While standard retirement accounts like 401(k) plans and IRAs do not allow...
Setting Yourself up for Success; Understanding Risk in Commercial Real Estate Investing
For some, investing in commercial real estate (CRE), is seen as the ultimate investment– monthly cash flow, value-add opportunities in a physical asset, and appreciation of the property, all with minimum effort from the investor. At first glance, investing in CRE...
How to Analyze Multifamily Investment Opportunities: The step by step guide to underwriting
For many new real estate investors, underwriting - or analyzing - a potential deal remains a major mystery. People hear the term “underwriting” and assume it’s some extremely complicated process. While some deals are more complicated than others, the process of...
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