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What is your net worth? Do you know? Why is it important? What steps can you take to increase your net worth? In this article we will go over these questions and put you on the path to financial freedom. Net Worth Definition Net worth is the difference between the value of your assets, minus
Read MoreYou may have heard that you should have a mix of stocks and bonds in your portfolio to reduce risks. An economist that teaches at a top university on the West Coast tipped us off to a different approach. In this approach, you use real estate, instead of bonds, to reduce the risk of heavy
Read MoreReal estate provides many different options for investors. We are always amazed, and sometimes perplexed, by the many ways people invest in real estate. Every method has its set of positive and negative aspects. We would like you to be aware of the most common options out there. Above all, we want you to understand
Read MoreThe laws and regulations for rental properties are constantly changing. Each state, county, and city can have their own rules for the handling of security deposits, the ability to increase rents, the warranty of habitability, how evictions are handled, etc. At Master Multifamily, we look to invest in states that are considered landlord-friendly. This can
Read MoreApartments present investors with 4 ways to capture an equity return: Equity appreciation Operational cash-on-cash returns Debt paydowns funded by renters An income tax shield provided by tax depreciation Cash-on-Cash Return The cash-on-cash return is the annual cash distribution from the investment divided by the equity investment made by each investor. Appreciation of value is
Read MoreAverage annual returns in long-term real estate investing vary by the area of concentration in the sector. Average 20-year returns in commercial real estate slightly outperform the S&P 500 Index, running at around 9.5%. Residential and diversified real estate investments do a bit better, averaging 10.6%. Real estate investment trusts (REITS) perform best, with an
Read MoreMultifamily investment properties have four main classifications – A, B, C and D. These classifications are used by investors, lenders, and brokers to help communicate the quality of an investment property or area. While not hard and fast rules, there are several key indicators that help distinguish between the different classifications. Factors that go into
Read MoreAs you consider how real estate investing may help you to reduce or defer your income taxes, please consult your legal and tax advisors about your own situation. Tax advice should be customized. (The comments provided here do not constitute specific legal or tax advice.) The United States income tax laws and regulations contain provisions
Read MoreWe target to achieve annual cash flow yields of 5-7% or more, and overall returns of 12-15% per year – all while investing in a relatively low risk asset class. Of course, returns are not guaranteed so do your due diligence. You must be an accredited or sophisticated investor (under SEC definitions) to invest. Our
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