Understanding Equity Multipliers in Real Estate Syndications

One of the common terms you will see as you review track records for multifamily syndicators is called an equity multiplier. Sometimes you may also see this as a projected number before the investment opportunity has begun, but typically you will see it as a number shown after the deal has been completed to showcase how well the investment performed for investors. This short article will explain what it an equity multiplier is, how it is calculated, and how it can be used to gauge the performance of a specific investment.

What to Expect When Exiting a Multifamily Syndication Deal

Typically, a multifamily syndication lasts anywhere from 2 to 7 years, though there are exceptions for shorter and longer cycles. What happens when the investment period comes to an end? That stage is called “exiting a deal.” As a passive investor, you should know what to expect from the syndication team, the tax implications, and any decisions that need to be made at this point. This article will break down the process from the management side as well as what you should be prepared for as a passive investor.

How to Evaluate Your Returns in a Real Estate Syndication

When it comes to multifamily apartment syndications, several different deal structures and investment paths are available to you. Understanding these strategies and their associated terms will help you make better investment decisions if you choose to invest in this asset class. This article will outline the different ways you can invest in a syndication, how it impacts your returns, and what terminology you can use to evaluate returns like IRR, AAR, and the investor/profit split.

Different Types of Multifamily Syndication Deals & How to Decide Which is Right for You

As you begin exploring investment opportunities as a passive investor, you will notice several different deal structures available to you. This article will outline the three most common types of multifamily syndications - new development, buy and hold, and value add.

Why Having an Investment Philosophy is Critical & How to Create One

There are plenty of ways to make money in real estate. Oftentimes, people become overwhelmed once they begin researching these various options because of just how many exist. They start asking themselves “Which of these is right for me?” Each real estate investment avenue has trade offs and the “right” one will depend largely on your financial goals, lifestyle, timelines, risk tolerance, and personal values. That’s where an investment philosophy comes into play.

How to Invest Like a Millionaire (Without Having to Be One)

As early as the 1800s, entrepreneurs knew that the road to riches could be found in real estate. The late Andrew Carnegie, a 19th-century steel industrial pioneer and billionaire, is famously quoted as saying, “Ninety percent of all millionaires become so through owning real estate.”

Passive Investing, Financial IndependenceElisa ZhangDecember 2, 2022

Top Risks of Investing in Multifamily Real Estate Syndications and How to Mitigate Them

As with any investment, risk can not be entirely avoided. You’re making an educated and informed decision to put your money into a project that you hope will return a high reward, though the unexpected is sometimes unavoidable. Markets, plans, and situations inevitably change. However, there are strategic ways to mitigate the risks associated with multifamily syndications to lessen your chance of exposure to the unknown.

What is a Multifamily Real Estate Syndication?

At EZ FI U, our main area of expertise is multifamily apartment syndications. This blog is intended to cover just that. We’ll discuss what the terms “multifamily” and “syndication” mean, what syndications actually are, how they are regulated, as well as offer a high-level overview of what it means to invest in apartment syndications.

The Tradeoffs Between Active and Passive Real Estate Investing

If you are exploring real estate investment opportunities, specifically in the multifamily arena, you may have come across the concepts of active vs. passive investing. This blog offers a high-level look at the difference between the two, what you gain, and what you give up depending on which investment path you want to take.

The Top 5 Benefits of Investing in Multifamily Real Estate Syndications

Real estate has always been a real asset that can offer great returns in multiple ways. Yet, within real estate, there are still many ways you can decide to invest. For those who want an option that allows them to be passive vs actively involved the day to day work, apartment syndications are often an appealing option. This article will explain why by sharing the top benefits of investing in apartment syndications and why so many investors choose this option to diversify their portfolios.

Real Estate Syndication Regulations: The Difference Between 506B and 506C Offerings

What you may not know about real estate syndications is that they are regulated by the securities law under the SEC (U.S. Securities and Exchange Commission). A syndication must either be registered with the SEC or meet one of the legal exemptions. This article outlines the two common exemptions that exist that allow a syndication to not be registered with the SEC, the difference between a 506(c) and a 506(b) exemption, and what you need to understand about each if you’re planning to participate in a multifamily syndication.

The Top 3 Qualities to Look for in an Apartment Syndicator

Finding a good deal is the easy part, but choosing who to invest with is where the real work comes in. Generally, most multifamily investment properties will look similar on paper. It is always important that you research the property and the neighborhood, but it’s even more critical to research the sponsoring syndication team.

In this article, you will learn the three main qualities to look for in an apartment syndicator and why these qualities are so important when it comes to deciding who to invest with.

How Real Estate Investing Helps You Think Long Term

We are constantly inundated with news hyping up new investment opportunities like NFT’s, crypto currencies, and even individual stocks that are easier than ever to buy through platforms like Robinhood. Real estate investors, specifically those that invest in multifamily syndications, are actually conditioned to think differently because of the nature of their investment. While many other investments focus the investor on the “right timing”, apartment syndications focus the investor on creating a plan that can be carried out regardless of the market conditions, and executing that plan over the course of several years. When you’ve built a plan that accounts for less favorable conditions and the return you will receive is controlled by you (or your syndication team), you don’t have to worry as much about timing and uncontrollable external factors.

The Team Players Involved in Apartment Syndications

Apartment syndications are opportunities for investors to purchase large-scale properties that they likely would not be able to purchase on their own by pooling their money together for the shared goal of making a profit. Syndications are made possible by the collective efforts of a few important players. Understanding the “who’s who” of syndications, along with their roles and responsibilities, will allow you to better understand how syndications work within the multifamily investing space.

Passive InvestingKristen TejadaJuly 6, 2022syndication roles

The Step by Step Guide on How to Passively Invest in Real Estate Apartment Syndications

Investing passively in apartment syndications are a great option for those that want to diversify outside of the stock market but don't want to necessarily become a landlord or a house flipper. The key word here is passive. This means you are simply providing the funding and letting an expert do the work.

This article will walk you through how you as an investor can actually participate in these investments and what you should expect at each step along the way. Let’s get into it.

What it Takes to Get Real Estate Professional Status and Why it Matters for Passive Investing

Real estate professional status is a code set in place by the IRS to benefit high-income investors when tax season rolls around. While REPS may not be for everyone, as it requires a great deal of documentation and specific requirements, it is a commonly used tool for investors looking to minimize their tax burden.

The Key Differences Between Investing in REITs and Real Estate Syndications

REITs (Real Estate Investment Trusts) have become increasingly popular in the investor community as people look to diversify outside of the stock market and into alternative investments. It is easy to confuse REITs with multifamily real estate syndications from the outside perspective. However, several differences exist between REITs and multifamily syndications, including taxation, liquidity, and more. We will get into these differences in this blog.

AAR vs. IRR - What’s the Difference?

Two commonly used terms in passive real estate investing are AAR (Average Annualized Return) and IRR (Internal Rate of Return). Both measure the ROI (Return on Investment) of a commercial real estate investment. However, there are several distinctions between the two calculations. As a passive real estate investor, it is important to understand the different terms, what they measure, and how to use them when vetting potential deals.

Passive InvestingElisa ZhangApril 15, 2022irr vs aar, what is a good IRR

Should Active Real Estate Investors Also Invest Passively?

Passive investing carries a wide range of benefits. The most important of which, for me, is diversifying and reaching new markets outside of my active portfolio. As an active investor, here are a few reasons you should consider also incorporating passive investments into your overall real estate investing strategy.

Student Success: How to Leverage Your Liabilities to Accelerate Your FI Journey

“So, where do you live?” Before last year, this was one of the easiest questions to answer. “I have a house just north of Seattle.” I even felt a swell of pride when telling other people I bought myself a house as a single woman at 29 years old and seeing their surprised (and sometimes impressed) reactions. Today, my answer is very different though, and brings with it even more pride and a feeling of liberation.