Real Estate Insights
Market Update: An uneven recovery Larry Jacobson, President An uneven recovery: Texas, Arizona among the states that have regained all their lost jobs The U.S. economy lost 22 million jobs in March and April of 2020, a huge number that reflected the fear gripping employers, investors and consumers at the dawn of the coronavirus…
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[DOWNLOAD] What kind of returns should real estate investors expect? Many long-time commercial real estate investors have grown accustomed to earning double-digit returns on their equity (cash flow plus appreciation). Indeed, commercial real estate has performed exceptionally well over the past few decades. Those who buy-and-hold real estate have been able to weather economic ups…
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[DOWNLOAD] Why a sponsor’s approach to leverage matters to investors When evaluating real estate opportunities, many people become hyper-focused on the deal specifics – including the market opportunity, rents, and potential returns for individual investors. Often lost in the mix is a deeper look at the sponsor’s approach to leverage in the transaction, including how…
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Property Investing: The Long, Safe Game Larry Jacobson, President Apartment investing has legs With the Global Financial Crisis of 2008-9 not yet a distant memory, and the COVID-19 economy 2020-21 ongoing, there is little need to reiterate that returns are not guaranteed for investors, large or small. “Cash is king” may be one…
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Market Update: The Recession-Proof Nature of Multifamily Apartment Buildings Larry Jacobson, President Introduction The COVID-19 pandemic was a global health crisis that few if any predicted. It caught investors and lenders equally off guard, and most took to the sidelines as they waited to see what sort of short- and long-term impacts it would have…
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Market Update: Multifamily Prices Rise, Returns Lower Larry Jacobson, President Investors, Banking on Continued Rent Growth, Pay Record High Prices for Apartment Buildings The early days of the COVID-19 pandemic caused widespread uncertainty among multifamily investors and lenders-but for most apartment owners, the bad news didn’t last long. After a brief pause, investment…
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10 Key Components to the Financial Underwriting of Apartment Buildings Larry Jacobson, President Introduction Most sponsors will look at dozens, even hundreds, of deals before making an offer on a property. In order to determine whether to move forward, most will begin with a multi-step due diligence process. One of the first steps in…
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5 Important Due Diligence Items for Apartment Investors to Consider Larry Jacobson, President Introduction People often assume that the cost to acquire a property is simply the cost of the property and any related closing costs. They overlook the significant time and resources that go into conducting due diligence on the property – costs…
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The Importance of Alignment of Interests Between Sponsor and Investors Larry Jacobson, President Introduction Real estate is an illiquid asset class and, therefore, when someone invests in a real estate deal, they will often have their capital tied up for at least a few years. This type of commitment requires significant trust. An investor…
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What to Look for in a Real Estate Sponsor Larry Jacobson, President When someone decides to invest in a tech stock, they don’t blindly assume that each stock will perform the same. Apple, Microsoft, Amazon, Google – each of these behemoths has its own business model that will influence how their stocks perform. An investor…
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