Intro: Investing in Commercial Real Estate with EquityMultiple
Welcome to EquityMultiple, and welcome to modern real estate investing. This introductory series is intended to equip you with the requisite knowledge to invest confidently. We will cover both basic information about EquityMultiple and our investment offerings as well as relevant commercial real estate investing concepts.
Studies have shown that portfolios substantially allocated to private commercial real estate will perform better over time*. Education is key, however, and investors who are getting started with diversifying from a traditional portfolio of stocks and bonds are advised to attain at least baseline knowledge of real estate investing concepts. You may already possess CRE investing knowledge. If so, feel free to skip ahead to subsequent series on investment types or alternative asset theory. As always, please feel free to schedule time with our Investor Relations Team to discuss any of these concepts or any questions regarding EquityMultiple.
Real estate investing can take various forms and can be complex, particularly when investments are made across the capital stack and across commercial real estate property types. Investors can more effectively diversify into real estate if they have a working knowledge of core real estate investing concepts and an understanding of the modern real estate ecosystem.
Though we strive to provide as much information and transparency as possible, and do the heavy lifting of rigorous diligence on investments, there are concepts we believe every individual should know as they evaluate real estate investments.
Let’s Dive In – An Intro to EquityMultiple & Commercial Real Estate Investing
This learning series aims to provide a base of core concepts that we believe you should have in your back pocket as you navigate the modern landscape of real estate investing vehicles. We hope you find it valuable. Please let us know if you have any questions along the way.
Table of Contents
Part I – EquityMultiple Basics
EquityMultiple’s Unique Value to Investors
Frequently Asked Investor Questions
The Latest Investor Intro Webinar
Asset Management – What It Means, How EquityMultiple Does It
Downside Protection – Practices & Protocols
Fees, Carries, & Distributions
EquityMultiple Tax Practices & K-1 Delivery
How to Navigate EquityMultiple’s Investment Statuses
Part II – Real Estate Fundamentals
Why Invest in Commercial Real Estate
Real Estate vs. Other Asset Types
Real Estate Investing Terminology
Common Real Estate Metrics
Real Estate Pro Formas
Capitalization Rates (Rates)
Leverage: LTC & LTV in Real Estate Investing
DSCR – Debt Service Coverage Ratio, Explained
CRE Reversions & Exit Strategies
Tax Considerations for the Passive Real Estate Investor
Part III – Intermediate Real Estate Investing Concepts
The CRE Capital Stack – How It Works
Internal Rate of Return (IRR) in Real Estate Investing
What is a Preferred Return?
Preferred Returns, Waterfalls & Hurdles
The Real Estate Risk Spectrum
Market Cycles & Real Estate Investing
Real Estate Syndication: What, Why, and When
The Difference Between REITs & Private, Passive Real Estate Investing
The Effects of Inflation & Real Estate Investing
Top Investing & Personal Finance Blogs for Accredited Investors
Getting Started in Real Estate Investing
We hope that this Learning Series helps you get comfortable with real estate investing concepts as you consider a more substantive allocation to the asset class. You may also find our whitepaper – Diversifying Your Portfolio with Real Estate – useful if you are just beginning your journey.
As new real estate investing trends and strategies emerge throughout market cycles, we will make additions to this Learning Series with input from our investors and the latest research on real estate investing and finance.
If you have any questions along the way, don’t hesitate to reach out at contact@equitymultiplestaging.com
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