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Types of Real Estate Loans—And How to Apply for Them

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Real estate is booming right now. In May 2021 alone, home sales were up 44.6 percent from the previous year. Given this rise, many people are looking to get into the real estate game.

Whether you are looking to buy a primary residence or make your first real estate investment, you are likely wondering how to apply for real estate loans. Are you trying to learn what types and options are available?

Read on to learn how to apply for a real estate loan and make your investment dreams a reality. [Read more…] about Types of Real Estate Loans—And How to Apply for Them

How to Prove You Are an Accredited Investor?

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Are you ready to place capital into an investment, but first need to prove that you are an accredited investor?

Currently, the U.S. Securities and Exchange Commission (SEC) limits most real estate funds and private placements to accepting capital only from people who are verified to be accredited—according, of course, to their somewhat arbitrary definition. [Read more…] about How to Prove You Are an Accredited Investor?

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What Is an Equity Multiple and How Do You Calculate It?

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With all its terminology, stepping into the world of investing can be daunting. Nonetheless, an important concept to understand is the equity multiple.

But what is an equity multiple and how can you use it to evaluate the strength of an opportunity?

Also, when and why would you use it over other key performance metrics? Keep reading to learn these answers below. [Read more…] about What Is an Equity Multiple and How Do You Calculate It?

IRR vs. ARR: What’s the Difference?

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Key Takeaways

  • ARR is  formula that calculates the annual percentage rate of return expected from an investment, compared to its initial cost.
  • ARR is a simple calculation that can be done on the back of a napkin.
  • IRR is more complex equation that is best calculated with a spreadsheet or calculator.
  • IRR stands for for Internal Rate of Return. It lets you estimate the future profitability of potential investments.
  • IRR lets you factor in the time value of money, which ARR does not.
  • IRR is preferable if you won’t earn cash flow from an investment evenly over time.

[Read more…] about IRR vs. ARR: What’s the Difference?

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What is Real Estate Syndication? Everything You Need to Know

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Are you interested in real estate investing but unsure of the responsibilities that come with it? Investing in real estate can provide you with a steady income, but it’s a lot of work for one person to manage. If you’re not up for the challenge of being a landlord and the headaches that it carries, then real estate syndication is an opportunity you should consider. [Read more…] about What is Real Estate Syndication? Everything You Need to Know