ARTICLES

The surge in inflation has been in the headlines for a few years now. While Consumer Price Index (CPI) has primarily held the spotlight, Personal Consumption Expenditures (PCE) is the Federal Reserve's preferred measure of inflation. A deeper understanding of both is valuable for sophisticated real estate investors.

Theologian and author Robert McAfee Brown wrote about two different Greek words relating to time. Chronos describes a particular point in time, e.g., today at 4 p.m. or August 15th at noon. Then there is kairos, a very different kind of time. Kairos refers to the right, critical, or opportune moment. A kairos moment is one that is ripe with opportunity.

We recently reached the top of the fastest interest rate-raising cycle in the past 50 years, and it was dramatic. According to the Fed’s dot plot, we will see ~3 rate cuts this year in 2024. However, the market doesn’t believe the Fed and is closer to ~6 rate cuts this year. It will be interesting to see where it lands.

Bonus depreciation is a tax incentive that allows investors and businesses to immediately deduct a large percentage of the purchase price of qualified business property rather than spreading those deductions over many years. This results in a more significant tax deduction in the year of purchase and initial usage.

If you’re new to real estate investing or seeking to expand your knowledge, you might wonder, “What are the benefits of investing in real estate?” If you find yourself in this position, welcome to 37th Parallel Properties; you’ve come to the right place.

Real estate vs. stocks, which is better for you and your investment goals? When you invest, you want to achieve the results you expect. So, it is important to understand the pros and cons of what you invest in and not just follow the crowd.

If you’re an investor, you’ve probably come across the terms cash-on-cash return, equity multiple, and return on investment. These metrics can be used to evaluate the performance of an investment.

When you invest in multifamily real estate, there are multiple ways to profit. There is the cash flow or real estate income that is generated from the property. This monthly income is created as rents come due and are distributed quarterly in our network.

The most important metric to understand when evaluating income-producing real estate is Net Operating Income (NOI). NOI, along with the prevailing capitalization rate (cap rate) for your investment type, grade, and location, controls the value of your investment. And unlike the cap rate, you have a large degree of control over NOI. So it’s critical that you understand all the components of NOI and how it works.

All across the nation, individuals have real estate holdings they own and manage themselves. Some succeed, some fail, and others tread water. What separates these people is experience and expertise.

There may be a million ways to invest your money, but there are a handful of bedrock investing principles that you shouldn’t ignore. One is diversification, and another is asset allocation or portfolio construction. Understanding how to create a balanced portfolio is essential to get ahead.

If you plan on retiring one day, you should familiarize yourself with the concept of retirement real estate income. Income producing real estate is a proven inflation hedge and should be a part of everyone’s retirement income plan.