Real estate crowdfunding started after the passage of the JOBS Act in 2012, which allowed for the advertising and solicitation of investors for real estate investmentsā“. Some of the first real estate crowdfunding platforms, such as Fundrise and Patch of Land, launched in 2012, while others like RealtyMogul and CrowdStreet launched in 2013 and 2014 […]
Artificial intelligence is generally understood as the ability of computers and machines to handle tasks that require human intelligence. Machine learning, which is one of the most common applications of AI, involves training machines with large amounts of data to recognize patterns, analyze data, and run forecasts and algorithms. Artificial intelligence (AI) is poised to […]
In order to get a sense for why we have a shortage in housing today, we have to go back to January 2006 when total housing starts were 1.8 million units. This put the Wells Fargo Housing Market Index at 72. The housing market index consists of single family and multifamily units. Even though the […]
The field of finance often relies on various financial metrics to assess investment opportunities and make informed decisions. One such metric is the Internal Rate of Return (IRR), which measures the profitability and attractiveness of an investment. While IRR is widely used and provides valuable insights, it has inherent limitations, particularly when comparing multiple investment […]
The real estate space market and the real estate capital markets are closely intertwined, with a shift in one market having a significant impact on the other. The real estate space market encompasses the physical space and buildings used for commercial, industrial, and residential purposes. The real estate capital markets, on the other hand, refer […]
When beginning to evaluate land for a multifamily development, it can be quite overwhelming the first few times as there are many factors to take into account. Although there are many details to be scrutinized when considering investing in multifamily, and all attributes should be thoroughly analyzed; there are three key points that can help […]
I have failed many times. But I am not a failure. Without failing, there is no success. Every time I have failed, I have learned from it and used it as an opportunity to succeed on the next go. What is the difference between failing and being a failure? Mindset. I read an eye-opening book […]
An inverted yield curve occurs when the yields on long-term bonds are lower than the yields on short-term bonds. In other words, investors demand a higher rate of return for holding shorter-term bonds than longer-term bonds. This phenomenon is significant because it is a strong predictor of an oncoming recession. Typically, longer-term bonds offer higher […]
What is Capital Stack? Multifamily properties, also known as apartment buildings or rental communities, are a popular investment option for real estate investors. However, financing such properties can be challenging as they require substantial capital investments. That’s where the capital stack comes into play. The capital stack is a financing structure that combines various types […]
In the world of multifamily property underwriting, one crucial factor that investors and lenders must consider is the impact of interest rates on underwriting. This consideration becomes especially important during periods of rising interest rates. In such times, it is essential to determine whether to use trended rents or untrended rents when assessing the property’s […]
