Category: Real Estate
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What is a Sponsor in a Real Estate Syndication?
What is a Sponsor in a Real Estate Syndication? In the world of real estate investment, a sponsor plays one of the most critical roles in ensuring a project’s success. Acting as both a general partner (GP) and a project manager, the sponsor handles the heavy lifting that transforms an idea into a profitable venture.…
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How to Calculate Straight-Line Depreciation: A Simple Guide
How to Calculate Straight-Line Depreciation: A Simple Guide Managing your business or practice’s assets effectively is essential for maintaining financial health. One tool that can simplify this process is the straight-line depreciation method, a widely used approach that evenly spreads the cost of an asset over its useful life. Whether you’re running a small business…
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What Is Preferred Equity in Real Estate?
What Is Preferred Equity in Real Estate? Preferred equity in real estate offers investors a unique way to earn returns while balancing risk and reward. It sits between senior debt and common equity in the capital stack, giving investors special privileges. You get priority in cash flow and profits compared to common equity holders, potentially leading to…
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Real Estate Syndications: How I Started Investing as a Dentist
Real Estate Syndications: How I Started Investing as a Dentist Real estate syndication allows investors to pool their resources to buy or develop properties that are typically too large for one individual to handle. In this type of investment, a lead investor, known as the syndicator or general partner, identifies investment opportunities and manages the…
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How to Start a Mobile Home Park: A Step-by-Step Guide
How to Start a Mobile Home Park: A Step-by-Step Guide Starting a mobile home park can be exciting and profitable. With the right planning and effort, you can create an affordable housing option that benefits both you and your future residents. As a periodontist, I had NO CLUE about how profitable this asset could be even…
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What Are CMBS Loans? Loan Terms, Property Types, and Risks Explained
What Are CMBS Loans? Loan Terms, Property Types, and Risks Explained CMBS loans (commercial mortgage-backed securities loans), also known as conduit loans, play a significant role in real estate financing. These loans involve pooling together commercial mortgages and selling them to investors. This allows businesses to access capital while providing investors with a fixed-income investment…
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Rent Concession: What Is It and Should You Offer One?
Rent Concession: What Is It and Should You Offer One? Rent concessions can be crucial in the rental market, especially for landlords looking to fill vacancies. A rent concession is a temporary incentive landlords offer to attract and keep tenants. These incentives can take many forms, such as: reduced rent waived fees added amenities They…
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How To Buy a Campground With No Money Down
How To Buy a Campground With No Money Down Entering the campground business can be an exciting and profitable venture. With over 16,000 campgrounds across the U.S. and 40 million Americans regularly RVing, the demand for camping spots is high. Whether you’re planning to acquire an existing campground or start one from scratch, it’s essential…
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Is Accumulated Depreciation An Asset In Real Estate?
Is Accumulated Depreciation An Asset In Real Estate? Accumulated depreciation is important in real estate accounting because it shows the true financial health of a company. It isn’t listed as an asset on the balance sheet; instead, it’s a contra-asset account that lowers the value of the related asset. This amount shows the total depreciation…
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The $4.2 Million Gamble: Inside Our High-Stakes Mobile Home Park Transformation
In February 2023, my business partner and I purchased a mobile home park in South Louisiana for $4.2 million. Just one year later, it’s valued at $8.4 million, and it’s still climbing. Here’s a simplified version of our journey. From Purchase to Profit: The First Steps Finding the Opportunity The park is strategically located between…
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Accredited vs Non-Accredited Investors: What’s the Difference?
Accredited vs Non-Accredited Investors: What’s the Difference? Accredited investors meet certain income or net worth criteria set by the SEC, allowing them to participate in a wider range of investment opportunities. Non-accredited investors, on the other hand, do not meet these financial criteria and are typically limited to more regulated and transparent investment options. Understanding…
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How to Use a Self-Directed IRA for Real Estate Investing
How to Use a Self-Directed IRA for Real Estate Investing Investing in real estate through a self-directed IRA allows you to diversify your retirement portfolio beyond traditional stocks, mutual funds, and bonds. Unlike a traditional IRA, a self-directed IRA allows you to invest in alternative assets, including real estate. This means you can use your retirement savings…
