Investors' Frequently Asked Questions (FAQs)
You may have a million thoughts and questions about real estate investments. Some of these may be common knowledge, but other questions will be unique to you and your situation.
Investing in real estate is a life-changing experience, so it’s important that you make sure you’re making the best decision for you (and others).
If you seek additional questions and answers, send us a note or give us a call. We will happily get in touch with you!
We respect your privacy. Your information is 100% safe with us.
AM I ABLE TO USE MY INDIVIDUAL RETIREMENT ACCOUNT (IRA) TO INVEST IN REAL ESTATE?
The quick answer is Yes! The Internal Revenue Service (IRS) along with Employee Retirement Income Security Act (ERISA) have specific rules and codes for these investment activities.
WHAT IS A SYNDICATION?
A syndication is a formal legal process for pooling funds from multiple investors with a common investment and goals. This is a great opportunity for investors that have limited capital to participate in these kinds of investments, e.g purchase an multifamily / apartment building or other types of commercial real estate.
HOW DO YOU FIND AND DETERMINE INVESTMENT PROPERTIES?
We have a wide network of partners that scour over the national and local markets. In addition, we have proprietary valuation models to determine if the property will be a worthwhile investment opportunity for our investors and partners. We strive for strong, positive returns.
WHAT IS INTERNAL RATE OF RETURN?
Internal Rate of Return (IRR) is used as an objective way to compare investments and one of the decision factors of pursuing investment in a real estate property. It is the net present value estimate of the cash flow it generates during the timeframe of ownership. In other words, it's the anticipated percent return you would earn on each dollar you invest in a property over the holding period.
WHAT IS CAP RATE?
Capitalization rate is calculated by dividing the property's operating income by its asset value, which represents the percent return of that property over one year. Properties with low cap rates are typically more expensive but less riskier. Properties with higher cap rates are more affordable but riskier. Higher cap rates tend to have greater rewards for the risk. Determining which cap rate that best suits you and fits your needs will all depend on your investment goals and objectives.
WHAT IS NOI?
Net operating income (NOI) is the property's income after vacancy and expenses have been applied, but before debt service or mortgage is applied.
1968 S. Coast Hwy Ste #2520
Laguna Beach, CA 92651
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