5 ways real estate investors get paid

The 5 Ways You’re Paid In Real Estate Investing

The following post was first published on Keith Weinhold’s “Get Rich Education” blog, and is re-published here with the author’s permission.
Most people know that real estate has made more ordinary people wealthy than any other investment vehicle.

But they don’t know how.

Real estate is a “multi-dimensional” investment class. This means that you’re paid multiple ways simultaneously. Five, in fact!

Let’s briefly explore each of your five with a simple example, and we’ll add up your rates of return to see how […]

Apartment Complex

What is MIP in HUD Multifamily Loans?

Mortgage Insurance Premium, commonly referred to and abbreviated as MIP, is something unique to FHA Multifamily loans. The Federal Housing Administration (FHA) is a division within the U.S. Department of Housing and Urban Development (HUD). The purpose of the FHA is to provide mortgage insurance on loans made by FHA-approved lenders throughout the United States.

FHA insures both single family and multifamily properties. In the multifamily commercial world these loans are commonly referred to as HUD loans. Technically, HUD is […]

Apartment-Store Front

How Can a Non-Recourse Loan Help You as a Real Estate Investor?

There’s a good chance you’re already familiar with the concept of a non-recourse loan, but to help illustrate it, let’s define its exact opposite—a recourse loan. Let’s say you take out a loan to buy a car. As a provision of the loan, the lender can require you to sign a personal guarantee upfront—also known as a recourse term. This allows the lender to take possession of the car if you fail to make payments.

The same is true with […]

HUD Lending

What to Look for in a HUD Multifamily Lender

Every experienced multifamily investor knows that most commercial mortgages run for a 10-year term with a balloon payment due at maturity.  This sets the stage for needing multiple refinance transactions throughout the life of the loan until the property can be paid off, while continuing to generate maximum cash flow.  The cost and amount of effort to refinance every decade can be a significant use of resources over the life of the mortgage.

Look at recent history, and put yourself […]

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Avoid These 5 Pitfalls in Multifamily Investing

Investing in a commercial multifamily property can be an exciting opportunity with promising results.  In the right market, it can be a goldmine, but there are five common mistakes that keep investors from maximizing the return on their investment.  Do you know how to identify and avoid these pitfalls before they hit your pocketbook?  Here are some tips we think you will find invaluable.

1.  Underestimating the Cost of Turning Units

Even if a multifamily commercial property is occupied, you may […]

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Which Renovations Offer the Best ROI for Multi-Unit Properties?

There is a tried and true philosophy in residential real estate that declares, it’s best to target the worst home in the nicest neighborhood, and add value through renovations.  Logic begs the question then, does this same idea apply to multifamily housing?  Those looking for a strong, immediate ROI on their real estate investments may do well to look for older properties in desirable areas that may simply need upgrades or uncomplicated repairs.  Through a quick, multifamily property flip, […]

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Millennials and Multifamily Development

 

Much has been written recently about the economic footprint of the Generation Y demographic, commonly known as Millennials.  As they begin to reach the prime earnings phase of their lives, their particular influence can be directly observed in how advertisers chase their dollars, how retailers shape their products, and, not surprisingly, how real estate players appeal to their appetite for working, living and socializing.  For most Millennials, choices around housing are more complex than the age-old decision of whether […]

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4 Things to Consider When Rehabbing or Building Senior Care Facilities

There are a lot of Baby Boomers, and they are getting older, so it’s no wonder that the need for more senior care and senior living facilities has increased significantly over the last decade. Today, more and more owners of multifamily properties are considering the building or purchasing a senior facility to the increasing housing demands of a retired population. If you are a developer or investor, here are a few of the trends you should know about so […]

Bridge Loans

When Would a Multifamily Bridge Loan Be Most Advantageous?

Here’s the the good news: you’ve found the ultimate multifamily property that you’ve been looking for.

The bad news: you don’t have the funds needed to transition ownership within the seller’s timeframe, and for whatever reason, your current financing options are limited.

Many prospective property owners in this situation have seen investment opportunities disappear because they weren’t aware of alternative financing options. But here’s some additional good news: you are not destined to miss an opportunity simply because you can’t finalize […]

Renovations

Renovations That Offer the Best ROI for A Multifamily Property

There is a tried and tested philosophy in residential real estate that goes something like this: target the worst home in the nicest neighborhood and add value through renovations.

For multifamily real estate investors, logic then begs this question: “Does this same approach apply to multifamily housing?” The answer—not too surprisingly—depends.
If you’re looking for a strong, immediate ROI on a real estate investment, you may do well to look for an older property in a desirable area that may simply […]