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Real Estate GP vs. Sponsor vs. Syndicator: Gain Clarity on the Differences
Somewhat confusingly, General Partner (GP), sponsor, and syndicator are all used interchangeably in the real estate industry. GP, the sponsor, and the syndicator seem to refer to the person or entity leading a real estate deal. In this article, I will clarify what they actually refer to, what the role [more]
How The Post-Pandemic Real Estate Investor Can Now Leverage Remote Work and a Recession
In a recent conversation with a real estate investor friend, we discussed that remote work has caused some office buildings spaces to become empty, resulting in defaults and foreclosures. Some office space currently sells at 20 cents on the dollar. Is this a buying opportunity, or is the remote shift [more]
2 Powerful Ways to Advertise Real Estate Offerings and Raise More Capital
Real estate sponsors often advertise real estate offerings to the public to obtain new investors. Yet, 87% of the people seeing their ads cannot legally invest because they need to be accredited. The Problem: Advertising to Everyone Yet Only 13% Can Invest An accredited investor must meet specific financial qualifications, [more]
The Advantages of Real Estate Investing as a Limited Partner (LP) – Now Open to ALL Retail Investors
Like all real estate investing, wealth has traditionally been the prerequisite to becoming a limited partner (LP) in cash flowing real estate deals for two main reasons. First, buying real estate is very expensive; second, partnerships in real estate deals involved the sale of securities and were until recently, for [more]
Real Estate Crowdfunding: A Powerful Solution for Investors and Sponsors
What is real estate crowdfunding and how is it done? More and more real estate sponsors are using crowdfunding to raise capital for their real estate projects and deals. Crowdfunding is not new -- an Initial Public Offering (IPO) on the stock exchange is a form of crowdfunding. What is [more]
Real Estate Cash Flow: The Benefits of the Cash-on-Cash Return Metric
This article explains the benefits of cash-on-cash return as a metric to understand the cash flow of a real estate investment opportunity. One of the benefits of investing in real estate compared to other investments, such as stocks, is that real estate cash flows in addition to any potential appreciation. [more]
IRR and Equity Multiple: Cons in Common, and How to Not Use Real Estate Investment Metrics
One seeming benefit of any real estate investment metrics that sums up the potential returns of an investment opportunity is that it pretends to allow investors to compare potential returns across different investment opportunities using a standard measure. One massive drawback is that one metric only tells part of the [more]
Know the Differences: IRR vs. Equity Multiple for Real Estate Investment Evaluation
Internal Rate of Return (IRR) and equity multiple are both metrics that real estate investors use to evaluate investment opportunities. Recently someone told me that they do not look at the IRR as a method for assessing their investment opportunities but instead use equity multiple. While there are some similarities [more]
Equity Multiple to Evaluate a Real Estate Investment Opportunity
There are numerous metrics used to evaluate the quality and attractiveness of a real estate investment opportunity - equity multiple, IRR, cash-on-cash, cap rate among others. Each one tells a different part of the story, and no one metric offers a comprehensive picture. In addition, the investor's goals also play [more]
When Comparing Real Estate Investments: 3 Pros and 3 Cons of IRR
Real estate sponsors will often present Internal Rate of Return (IRR) as the main metric to consider when evaluating an investment opportunity. It is important to be aware of the drawbacks and benefits of all the various metrics used to present a real estate investment opportunity including cap rate, equity [more]
