April 2018

rant
There are lessons to be learned from new situations that arise. This just happened and I am pissed off!  It is a cautionary tale which I hope you can learn from.      The normal process works this way… Julian and I find every property for sale in the area – this requires contact with every broker in the area at least every week.  Julian pulls rent comps, analyzes the rent roll and financials, then utilizes my Quick Analysis from to give the first glance at a property for sale – this process takes 1-2 hours per property.  I review the information and numbers – another 30 minutes.  We then contact the broker, ask more questions, and refine the numbers again.  Our next step is to arrange a property tour on the property – again to verify our numbers and further refine our business plan for the investment.  This includes…
income-properties
If we use the definition of an asset by Robert Kiyosaki in his book Rich Dad, Poor Dad, an asset is something that makes you money.  Conversely, a liability is something that costs you money.  Therefore, an investment in a real estate asset is something that makes you money. If you are buying something that makes you money, how do you come up with a price you are willing to pay for that investment?    In today’s current state of the market, prices are going up very fast.  Why? In my opinion a few different forces are at work.  Our real estate market crashed in 2008.  This caused most people to distrust many investments, including real estate.  The resulting crash also wiped out many individuals’ savings and any equity they may have in their real estate assets.  The government and the Fed created a stimulus by injecting billions of dollars into the…
real-estate-syndication
Syndication is a way for people to pool their financial and intellectual resources together to purchase properties much bigger than they could afford or manage on their own. The person who puts together a group to purchase a property is called a Syndicator, Promoter, or Lead Investor.  The syndicator usually brings the intellectual resources needed to identify, analyze, contract for, inspect, finance, fund, close, manage, refinance, and dispose of a property in a manner that provides a financial return to his investor/partners.  The investor/partners leverage their financial resources into the transactions as passive investors while continuing their current occupation. This creates a symbiotic relationship, as well as a fiduciary responsibility to each other.  The syndicator is the responsible party that actively manages the project.  The syndicator uses his market knowledge and experience to create value for his investor/partners by increasing the value of the property and provide cash flow. The…

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