37TH PARALLEL INSIGHTS AND ARTICLES
The European Waterfall – Profits & Protection
Hearing the words European waterfall might evoke recollections of Langfoss, Stuibenfall, or Mardalsfossen. But that’s not what this article is about. Instead of diving into a plunge pool, we will dive into how profits from private equity are distributed. And more specifically, we will compare and contrast the American Waterfall with the European Waterfall. But first, let’s define some terms.
Real Estate Taxes: A Brief Guide
To understand real estate taxes, you need to understand ad valorem taxes. Ad valorem is Latin for “according to value.” And ad valorem taxes are a series of taxes levied based on the value of an item.
Safe Haven Assets To Consider During Economic Downturns
2022 was a terrible year economically; one of the few bright spots was the safe haven asset multifamily real estate. But otherwise, inflation skyrocketed to a 40+ year high; gas prices hit record highs, the S&P 500 was down -18.11% percent and the bond market had its worst year ever.
Real Estate Tax Deductions Guide
It’s that time of year again… taxes. But let’s make it more interesting and focus on tax reduction, and more specifically, real estate deductions. As a real estate professional, I have to know about this subject. But that doesn’t make me a tax professional. So here is my disclaimer.
Quick Guide to Real Estate Correlation
Believe it or not, real estate correlation is an important topic. And you should pay attention to it if you want to understand diversification. We all know that diversification is good advice. It’s right up there with some of these pieces of advice.
Recession Proof Investments
Everybody is looking for recession proof investments. Why is this? Depending on who you talk to, we’re either already in a recession or soon to be in one. important to have some recession proof investments in your portfolio.
Long Distance Real Estate Investing Guide
Mention long distance real estate investing in your local investor’s club and you’re likely to get some very strange looks. Keep it up and it won’t be long until you’re branded as someone who likes to buck conventional wisdom.
Fundamentals of Real Estate Markets
The fundamentals of real estate span across three broad categories, acquisitions, operations, and dispositions. When you own a property, manage that property, and ultimately sell it, you’ve gone full cycle.
Your Financial Wellness Checklist – A Simple Guide
Just as it’s prudent to do an annual exam for your health, routine maintenance on your cars, and periodic repairs on your home, it’s also critical to follow a financial wellness checklist regularly for your financial health.
Income Investing is Making a Comeback
Income investing is when one invests to generate recurring long-term income while preserving one's capital. As a strategy, income investors tend to be on the lower-risk side of the investment spectrum. Investors who covet this investing strategy accept lower rates of return in exchange for higher safety and stability. Income investing is commonly incorporated into the portfolios of middle-aged and older investors.
Growth vs. Income Investing
If you took a survey and asked multiple people what kind of investor they are, you’d likely get a wide range of answers. You might hear things like, "I buy mutual funds, stocks, bonds, real estate, private placements, venture capital," etc. Others might identify as active or passive, risk-averse, or involved with high-risk asset classes. There is almost no end to how someone might recognize.
A Guide to Real Estate Investment Funds
Funds are standard investment vehicles in the United States and around the world. Mutual funds, money market funds, exchange-traded funds (ETF), and real estate investment funds are just a few. CNBC reports that in 2020 alone, an estimated 120 million American investors held almost $24 trillion in mutual funds.
Real Estate Equity and Ownership Guide
Regarding equity and ownership in real estate, knowing how investors make money is essential. If you’ve followed our articles, you know real estate investors can make money in four ways: Cash Flow, Appreciation, Tax Benefits, and Principal Paydown / Amortization. Of the four, appreciation and amortization are sources of equity growth. This article will focus on how to get the most out of real estate ownership by increasing your equity and putting that equity to work for you.
America is Becoming a Nation of Renters
In 2021, Bloomberg published an opinion piece by economist Karl Smith entitled “America Should Become a Nation of Renters.” It got my attention, as this discussion is more relevant today than ever. Whether we should or shouldn’t become a nation of renters is a philosophical question, and I’m not much of a philosopher. The reality is that renter households are rising while homeownership is contracting. Simply put, more people are renting.
Is The Stock Market Rigged? 7 Reasons Why It Could Be
Is the stock market rigged? Can the average investor really get a fair shake on Wall Street? These are curious questions. In Las Vegas, the odds are always in favor of the casino. How many times have you won a carnival game? Powerful lobbyist groups in Washington D.C. have undue influence to sway legislation toward their economic benefit.
Financial Leverage and 5 Rules For Enhanced Returns
Financial leverage is the use of borrowed funds to increase potential returns. In the right hands, leverage can be a real wealth multiplier. For those who lack expertise or invest in risky assets, financial leverage can be a loss multiplier. Let's take a deeper dive into the world of financial leverage to better understand when it should and shouldn’t be used.
The Good and Bad of Financial Liquidity For Real Estate Investors
Investors love to talk about financial liquidity. And if you peruse the various online financial discussion boards, you’ll discover a theme. High liquidity is excellent, and low liquidity is terrible. But is this true? At the very least, it’s a gross oversimplification. And at worst, it’s propaganda designed to keep you heavily invested in high-commissioned paper assets.
Top Reasons To Invest in the Multifamily Rental Market
Investors should consider investing in the multifamily rental market for many reasons, one of which is the demand for rentals. In this article, I’ll focus on who rents, why they rent, and the demand they are creating for this asset class. But the first thing you should know is that there was an explosion of new renters from 2004 through 2016.
Losing Money: The Financial Mistake Sabotaging Investors
Is there anyone who disagrees that losing money is a terrible thing? If you consistently lose money in your investments, that’s a severe problem. It breaks Warren Buffett’s first two rules of investing. Rule #1 - Never lose money. Rule #2 - Don’t forget rule #1. That doesn’t mean you should keep your money on a mattress. If you did, you’d still be losing money to the gnawing effects of inflation.
How to Use 1031 Exchange When Investing in Commercial Multifamily Properties
When T.J. Starker took on the IRS in the late 1970’s and won, he re-defined how investors could manage their portfolios and permanently changed the core strategies of commercial real estate investors.
The resulting tax code modifications, commonly referred to as the 1031 Starker Exchange, allow commercial real estate investors to defer capital gains tax from the sale of a real estate investment if they apply those profits to the purchase of another real estate investment within a specific time period.
How to Profit From Inflation With Multifamily Real Estate Investing
Is it possible to profit from inflation? For most people, inflation means losing money. It’s not overt where someone comes and forcefully takes money from their wallet. It’s more insidious with the prices of goods and services going up leaving your money with less purchasing power.
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