Real estate has long been a target for fraud, money laundering, and other illegal activity. Before investing, real estate investors should be on the lookout for signs of suspicious activity and conduct due diligence that rules out illegal behavior.
Read MoreReal estate investors should look for these red flags and should conduct due diligence before investing.
Read MoreRule 506(b) continued to be the most popular way for real estate investments to rase equity during the pandemic according to the SEC.
Read MorePeople raising money for a small business or real estate investment may be surprised that they are selling investment contracts subject to federal and state securities laws.
Read MoreReal estate sponsors receive several fees in addition to their carried interest. Learn about these fees and how they are calculated.
Read MoreEvery tenancy in common owner group eventually will experience change as the owners’ life stages and objectives change, or the property is passed to the next generation. Therefore, every group that owns property as tenants in common should have a Tenancy in Common Agreement.
Read MoreWhen establishing cash flow waterfalls, sponsors should utilize the simplist structure that works with the financial model to create the desired investor return.
Read MoreIRR can be an excellent way to compare dissimiliar investments. However, since an accurate IRR can be calculated only after an investment has been sold, IRR forecasts aren't a guarantee of financial performance.
Read MoreEquity crowdfunding has become more popular due to recent increases in the annual fundraising limit in Regulation CF. However, due to other limitations in Regulation CF, Rule 506(c) usually is a better option for a real estate sponsor who wants to advertise its securities offering.
Read MoreCash-on-cash returns are easy to calculate and can provide a basis to compare real estate investments to other investment types. Despite its usefulness, cash-on-cash return analysis is just one of many a prospective investor should use when deciding whether to invest.
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