First and foremost, what is refinancing?

Refinancing is the process by which an existing loan (s) on a property is paid off, making it possible to take a new loan which would cover the mortgage of the property in question. More often than not, the need for refinancing, as well as the timing of such a move is highly dependent on the type of business you invest in. For instance, if one invests in a syndicate, the need and timing would be determined by the syndicator. …


More often than not, many people are not interested in getting to know the basics of tax or tax benefits or how it works! This might not be surprising (given the complex stuffs involved in the tax sector). However, the recent rise in the percentage of passive investors call for a need to understand some things (if not much) on topics such as tax benefits. This would make you a distinct and discreet passive investor. It gives an edge in making decisions on investment plans plans presented from time to time. Investment is serious business. It is not wise enough…


PRIVATE PLACEMENT MEMORANDUM (PPM): WHAT IT IS AND WHAT TO LOOK FOR BEFORE SIGNING IT

The syndicators and most real estate agents are familiar with the term ‘Private Placement Memorandum’ commonly abbreviated as PPM. In case you are a greenhorn in the investment arena the content of this article would provide sufficient background information on this very important aspect of real estate investment.

Simply put, PPMs i.e Private Placement Memorandums are legal documents which are given to all prospective investors partaking in a real estate investment, despite their investment categories (as individuals or Limited liability companies). The program is designed…


Essential to the initial existence and survival of any business is the ability of the proprietor (s) to raise the capital necessary to fund the requirements of the business. In the real estate parlance, it is highly important as it enables the sponsor to grab opportunities as they come. In the absence of sufficient capital, the proprietor(s) or sponsor (s) of an establishment can best be said to be out of the game. Hence, the saying — No capital, no deals!

It must be noted that the best means of getting capital when the prospective proprietor or sponsor has limited…


It is no news that multifamily property is the investment rave right now. The odds associated with this line of investment seem to be slim as prices are rising and the demands are increasing by the day. Buyers and sellers often break protocols and lay aside their financial cultures just to make sure they beat other bidders at the next deal. Real estate investments usually have a great appreciation value but the multifamily properties are even growing at a more unnatural rate. This unprecedented growth is majorly an outcome of two human factors: Deferred single-family home purchases due to high…


HOW TO OVERCOME OBJECTIONS WHEN RAISING CAPITAL FOR A REAL ESTATE DEAL

Often than not, syndicators get perfect investment opportunities with all the financial factors, economic risks, and physical characteristics appropriately in check. But sometimes it takes a lot more to convince the passive investors to stake their money. The Private Placement Memorandum (PPM) might have been properly prepared and presented but somehow the investors remain unimpressed. They raise objections that threaten the feasibility of the investment happening. They question your investment strategies as they are not convinced by the proposal. At this point, what do you do?

It is…


It is no news, that multifamily properties are the investment destination of most passive investors. This constant demand and rush into the sector is an evolution of investor’s interest, from the single-family home market to multifamily property investments. Just by basic economics, the increased demand naturally increases the prices of multifamily properties. Yet more investors are trooping into this sector for the numerous benefits that outweigh or cushions the high prices. This article highlights the factors that have made multifamily properties a go-to or a darling child for most investors. …


In the real estate business, there are several myths that have being making the rounds. The complexity and unpredictability of this type of investments sometimes leave investors, without the capacity to differentiate the truth from myths. These myths are untrue stories created to develop a particular mentality amongst investors, usually for false purposes. It is important to note that some of these myths actually seem true but it only takes close examination to be sure of what they really are. This article separates the truths from the myths while identifying some of the top myths, common in real estate investments.


THREE TACTICS TO REDUCE THE RISK ASSOCIATED WITH MULTIFAMILY PROPERTY INVESTMENT

It is no news that multifamily property is the investment rave right now. The odds associated with this line of investment seem to be slim as prices are rising and the demands are increasing by the day. Buyers and sellers often break protocols and lay aside their financial cultures just to make sure they beat other bidders at the next deal. Real estate investments usually have a great appreciation value but the multifamily properties are even growing at a more unnatural rate. This unprecedented growth is majorly an outcome…


Most passive investors place their focus on the returns, hold period and the immediate economics of multifamily properties. Passive investors do this with negligence to other financial factors like the debt structure or loan system. The type of debt system employed might not be immediately relevant but it is just as important. Passive investors might not be involved in the several aspects of financial management, but it is very necessary for them to understand the debt structure and how it affects their investment goals. …

Dwaine Clarke

Founder at Jackson Clarke Capital Partners & GCT Net Lease, Podcast Host, Best Selling Author

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