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What is Return on Investment (ROI)?

ROI stands for Return on Investment, which is a method to measure the performance of an investment. To calculate your profit, take the the total return on investment and subtract the cost of the investment. To calculate that as a percentage, take the net profit and divide it by the cost of the investment. Example:

2021-07-23T19:09:24+00:00July 23rd, 2021|, |

What is Cash on Cash Return (CoC)?

Cash on Cash Return (CoC) is the cash income returned on the cash invested.  To calculate the cash on cash return, take your net cash flow (after all expenses) and divide it by the cash initially invested. Example: $100,000 property purchase $30,000 cash invested for down payment, closing costs, rehab, etc.. $12,000 Annual Gross Rent

2021-07-23T19:09:40+00:00July 23rd, 2021|, |

What is the Difference Between a 506(b) and 506(c) Fund?

Two of the most popular exemptions real estate investors use to raise capital from investors are Rule 506(b) and Rule 506(c). Both of these rules fall under Regulation D of the Securities Act and are regulated by the Securities and Exchange Commission (SEC). The key differences are: 506(b) allows up to 35 non-accredited investors to invest in the fund.  However,

2021-07-23T19:06:44+00:00July 23rd, 2021||

What is a Fund?

A fund is a pool of money that is allocated for a specific purpose. A fund can be established for many different purposes.  More specifically, an investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of their own shares.  Types of

2021-07-23T19:05:22+00:00July 23rd, 2021|, , |

What is a Sophisticated Investor?

A sophisticated investor is a high-net-worth investor who is considered to have a depth of experience and market knowledge that makes them eligible for certain benefits and opportunities. These qualifications below are not a firm definition but can provide a general idea of who may be considered a sophisticated investor. A net worth in excess

2021-07-23T19:05:14+00:00July 23rd, 2021||

What is an Accredited Investor?

The current definition of an accredited investor is A net worth in excess of $1,000,000, not including your primary residence; or. Historic and expected income of over $200,000 (or $300,000 for couples) in a calendar year

2021-07-23T19:05:07+00:00July 23rd, 2021||

What is Net Operating Income (NOI)?

Net Operating Income is the income you receive after all expenses are paid. Example: $12,000 Rent Received Annually (this is the Gross before you remove expenses) $6,000 Annual Expenses (including debt service, taxes, insurance, property management fees, vacancy, maintenance, etc..) $6,000 Annual Net Operating Income after all expenses are taken out  

2021-07-23T19:03:42+00:00February 28th, 2016|, |

What is Forced Appreciation?

Forced Appreciation is when you as the investor control the value of a property.  Multi-family real estate (5+ units) allow the investor to control the value through variables that affect the net operating income (NOI).  The higher the NOI, the higher the value of the property.  NOI can be affected by increasing revenue or decreasing

2021-07-23T19:03:51+00:00February 28th, 2016|, |
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