We attend these events for the great content that the organizers deliver. Information about the state of the multifamily investing market, motivational and inspirational speakers, and great tips on running or improving your business. Another great reason, is the connections we make with amazing people.

Check out the videos below to see what they had to say about using your IRA funds to invest and what investors should be asking about the debt used to buy a multifamily deal.

Using IRA funds for Multifamily Investing

Steve is an industry expert when it comes to teaching you how to properly use the money in your 401K or IRA and get it invested in multifamily real estate or other assets. As of this writing, Quest Trust is the largest Self Directed IRA custodian in Texas. You can find more information by checking out Quest’s website or reaching out to Shawn Griffith and scheduling a call.

Questions for Passive Investors to ask about Debt

Julie Anne Peterson is not just an expert at helping general partners (GPs) find the right debt for their deal, but she is also funny and generous with her time and expertise! Listen to the video for a few things passive investors should ask about debt in multifamily investing.

If you like these videos, please visit our YouTube Channel and subscribe.

You can take a look at some of our other blog articles:

• How to invest in Multifamily Real Estate
• Questions to ask
• How to track a deal

The post Multifamily Investing Training appeared first on TWT Multifamily.

Multifamily investing assets are a VERY resilient investment class that performed well even during COVID. Contrary to what the press would have you believe, most people actually paid their rent during COVID. According to the National Apartment Association.

Multifamily properties are in demand

People always need a clean, safe place to live. A number of factors drive multifamily investing. First is the need for people to get out of the weather. Second, the tax code provides incentives for developers and investors to create and improve housing. Demand opens opportunities for investing in multifamily assets. Whether this is a joint venture, syndication, or even with just your own money, there is great potential. Don’t just take my word for it. Check out this article from Freddie Mac.

Multifamily investing scales

It is easier and more efficient to manage a 50-unit complex than 50 single-family homes. Your assets are all in place allowing you to more easily manage your assets. Having everything under one roof allows you to have onsite property management and maintenance.

People need a place to live

With 400+ people a day moving to Dallas/Fort Worth, the new housing market is unable to keep up. Couple this with the high price of entry as a first-time homebuyer, it drives demand for apartments which is great for multifamily investing.

Multifamily investing returns cash flow

Cash received from operations after all the bills are paid is positive cash flow! Some people like to call this mailbox money. Though today, most operators use ACH transfers so your check doesn’t get lost in the mail.

Time and money invested in cash-flowing assets is a get-rich SLOW program. All the more reason you get started today. If you are ready to invest or want to know more, reach out so we can get to know you and your risk tolerance.

The post Why Multifamily Investing? appeared first on TWT Multifamily.

Multifamily Passive Investing Questions: Sponsor Team

1. What is their track record?
2. Alongside passive investors, do they invest in their own deals?
3. How significantly did market conditions play a role in their track record, as opposed
   to operational proficiency?
4. Does the firm have a significant online profile?
5. Does the sponsor have the proper resources and team in place to perform?
6. Do their professional referrals verify the claims that they have made about their
   reputation, experience, track record, and background?
7. What does your gut tell you about the Sponsor?

Now that we have vetted our sponsor team, it’s time to look at the deal structure. Understanding how the deal is put together is key to understanding how you as an investor get paid.

Multifamily Passive Investing Questions: Deal Structure

1. How is the deal structured?
2. Will non-accredited investors participate?
3. What is the hold strategy and how long can I expect to be in this investment?
4. How is the profit sharing with the Limited Partners (LPs) and General Partners (GPs) defined?
5. What are the common fees and how does the Sponsor make money?

All right! Now we understand the deal structure and are comfortable with the sponsor team. Asking tough questions about the financials and potential risks of any deal is critical. Let’s review some of the key questions to ask.

Multifamily Passive Investing Questions: Financials/Risk

1. What are the projected returns?
2. What is the required minimum investment?
3. Should I invest all of the capital I’m looking to put into one deal or spread it across
   multiple?
4. Are their any tax benefits from a passive investment in commercial apartments?
5. What are the risks and how is the Sponsor mitigating the risks associated with this
   investment?
6. What is the Sponsors strategy in the event of a down market?
7. What’s to stop the Sponsor from selling in a down market?

Process and Timeline

A key area is the timeline for the property acquisition and expected distribution schedule.

1. How frequently are distributions to investors made?
2. How often will communications/updates be sent out to investors?
3. Will I be able to 1030 from one deal to the next?
4. How involved can I be as a passive investors/limited partner?

General Knowledge

As with any industry, real estate investing has its own jargon. There are many terms that an investor should understand. Just a few of those are:

1. What is a syndication?
2. Are you an accredited investor?
3. What is a private placement memorandum (PPM)?
4. Can I invest with my LLC or self-directed IRA?

The post Multifamily Passive Investing Questions appeared first on TWT Multifamily.

Why do we offer opportunities to invest in commercial real estate? In particular, multifamily apartments are our favorite for passive investing. Shawn and Teri have a passion for providing great, community-oriented, places for our tenants to live and offering a  solid well-run investment program for our passive investors. 

TWT Multifamily provides opportunities for educated passive investors to join us on our wealth creation journey while creating great communities. We offer many opportunities to learn and continue your education as a passive investor. From articles on our blog like Why Invest in Multi-family Real Estate? and Make Your Money Work For You! to our monthly emails, Teri and Shawn provide information to help you be a better investor. And of course, you can always call us anytime with questions.

Our approach to providing you with passive investing opportunities

First, Teri and Shawn approach every opportunity with the mindset of giving our residents a great place to live. Second, we strive to provide great returns to our investors with solid cash-on-cash returns, as well as significant capital appreciation upon the sale of the property. All this while striving to keep everyone informed.

TWT Multifamily provides opportunities for educated passive investors to join us on our wealth-creation journey while creating great communities.

First, TWT Multifamily approaches every opportunity with the mindset of giving our residents a great place to live. Second, we strive to provide our investors with great returns and solid cash-on-cash returns. Our investors receive a quarterly dividend, once the property is stable. Investors also participate in capital appreciation realized upon sale. Finally, we plan to hold the property for around 5 years.

While every multifamily real estate deal will not to fit everyone’s investing criteria or time, we do offer the opportunity to everyone which TWT Multifamily has a pre-existing relationship. When you make an important decision, many factors are involved. Always feel free to reach out and ask questions.

Things to consider if you are ready to invest passively

• Will you need the money right away?
• Do you know the sponsor team?
• Have you defined your investment criteria?
• Does this offering fit your criteria for passive investing?

The post Passive Investing, Are You Ready? appeared first on TWT Multifamily.

Are you starting to see why so many people have found huge success through investing in real estate? Hopefully, you’re beginning to get excited about what real estate investing can do for your life too.

Now that you’ve got a basic understanding of why real estate is such a great investment, let’s turn the focus from real estate to you. Today is all about YOU and why you decided to join us on this journey in the first place.

Join the journey to make your money work for you

We are glad you found TWT Multifamily. Join the journey! Let us know how we can help? Allow us to show you how to make your money work for you so you don’t have to work for your money! Even if you love your job, it’s great to have options.

Perhaps you currently work a 9-to-5 job that’s wearing you down, and you’re looking for an escape . Or maybe the long commutes take their toll and you’re tired of missing your children’s sporting events. You’re ready to take control of your life and start making your money work for you, rather than the other way around. One aspect of learning to make your money work for you is understanding why you need to do it.

Firstly, take a moment to jot down a few thoughts about your why, and where you hope real estate investing will take you. Knowing your why will better equip you to begin. Passive investing is a great way to start. You can build wealth over time.

Secondly, close your eyes for a moment, and envision yourself 5 years in the future . Imagine that you started investing 5 years ago, and that it was a catalyst for you to really take control of your life. Finally realize that you are now a successful real estate investor.

—

What does your life look 5 years in the future?

At last, how does your calendar look? Have you quit your job? Are you traveling the world? Volunteering for a cause you care about? At the playground with your kids on a Tuesday afternoon?

In conclusion, the more detailed you get, the more effective this exercise will be. Always keep that picture in your mind, and remember to keep coming back to it throughout this journey.

Why does this matter? Make your money work for you

Above all, research shows visualizing your goals and writing them down, make you much more likely to achieve them. What does all this have to do with being able to make your money work for you? Passive investing takes time and effort getting to know some great sponsor teams. If you want to make your money work for you, multi-family real estate is one of the best vehicles available.

Please reach out to us and ask us how your money can work for you?

The post Make Your Money Work For You! appeared first on TWT Multifamily.

A great question. Why invest in multi-family real estate indeed? If you can’t answer it, you probably shouldn’t invest in it. Of course, that is true of any asset. You need at least a basic understanding of what the asset is and how it makes money. After all, isn’t that why you want to invest? To make money?

Let’s start with the simple question of, why real estate? First, we know there are many paths to growing your wealth, from investing in the stocks to writing a bestselling book to collecting bitcoin.

So, why invest in multi-family real estate?

That’s a great question. When Teri and I started looking for options, the ones that we knew were stocks, bonds, annuities, savings accounts and CDs. Eventually, we learned about Real Estate. With the volatility of the stock market and interest rates being close to zero, we were looking for other investment vehicles. We got interested in Real Estate investing after reading Robert Kiyosaki’s book, Rich Dad, Poor Dad. We started learning, joining local Real Estate Investing (REI) groups, listening to podcast like Old Dawg’s REI Network. Educate yourself to what is possible. We invested passively in our first multi-family in 2013 and never looked back. Stay tuned to the blog for stories about our journey and some of the bumps as well as the highlights. Let’s continue learning about why invest in multifamily real estate.

As we each invested in the stock market and dabbled in a little crypto, we had already given up on savings accounts and CDs, we realized that our Real Estate holdings were performing more consistently than our other investments. Yes, there times the stock market was great, but it also had some big drops. 2008 anyone? COVID? It also didn’t hurt when we heard over 90% of the world’s millionaires were created by investing in real estate, and we were starting to find out why.

The wealthy don’t work for money, their money works for them!

Real Estate Stands out!

Real estate stands out from other types of investments because of several key reasons.

1. Produces Cash Flow
2. Inflation Resistance
3. Uses Leverage
4. Gives You Equity
5. Can Appreciate In Value
6. Better Returns than Stocks
7. Provides Tax Benefits

Cash flow is king and real estate investing the means!

Bill Mannassaro

Produces Cash Flow

Real estate syndications provide monthly or quarterly distributions which you will receive directly to your bank account. Cash flow will allow you to live a life by design NOW VS. waiting until you retire so you can use your 401K.  Investing in a real estate syndication allows you to make an investment once in the beginning, and then sit back and watch it grow. You are essentially collecting ‘mail box money’ on a hands off investment while experienced operators manage the asset.

Inflation Resistant

When the price of everything goes up real estate will typically follow. 

Uses Leverage

Real estate syndications, on average, offer higher returns than other investments by using leverage. We typically look for opportunities where we can provide our investors at least a 8% cash on cash return, at least 70% return, and at least a 15% IRR. 

Gives You Equity

You own physical real estate or at least a piece of it.

Can Appreciate in Value

One of the key aspects that helps make real estate inflation resistant! The great thing about commercial real estate is forced appreciation. The higher your Net Operating Income (NOI), the higher the value of the property.

Better Returns than Stocks

Check out this great article from the Financial Samurai.

Provides Tax Benefits

Hello depreciation! This is HUGE! Investing in real estate can often help lower the amount of taxes you owe, even while you’re making great returns on your investment. Obviously we are not CPAs, so you check with your own CPA regarding your unique tax situation. 

Over the years Real Estate has been good to us. More on that in future articles, but don’t just take our word for it. Check out what Investopedia has to say. Find other sources like Bigger Pockets and what they say about risk versus reward. Get to know people in the industry. 

Schedule a call to chat with us. We would love to get know you. And if you do decide to invest with us, the SEC requires us to have an existing relationship. 

Newsletter and Deal signup

Shawn & Teri Griffith
shawn (at) twt-investments (dot) com

The post Why Invest in Multi-family Real Estate? appeared first on TWT Multifamily.

The rich don’t work for money. They make their money work for them.

Robert Kiyosaki

Working For Money

Growing up, we are taught to work for money. My first job was mowing lawns. Stay in school, go to college, get a job, buy a house, start a family, maybe take a vacation once a year, and wait until you’re 65 years old to retire. Sound familiar? It’s drilled into us from an early age.

When I looked around at my parents, my teachers, almost everyone I knew, they were all working full-time jobs to earn a paycheck. Many were fearful of layoffs and other conditions that might lead to them losing their jobs, as that would mean loss of income, change in lifestyle, and a boatload of stress.

Making Money Work For You

How do the wealthy make their money work for them? Real estate is the greatest wealth creator out of any investments. Just one more reason that the greatest investment you can make is real estate.

Real estate really introduced me to passive income and a doable way to build wealth for my family. Our first passive investment in 2013 was AMAZING! It wasn’t until several years later, I realized for the first time that our money was working for us, and in more ways than one. I was amazed.

How do I work for thee? Let me count the ways!

Your Money

Real estate makes your money work, hard.

What I learned over the next several years was that real estate makes your money work for you in multiple ways. This makes real estate different than any other investment vehicle out there. And the core of why real estate is one of the greatest investments you can make.

Why real estate is the greatest investment you can make

1. Produces Cash Flow
2. Can Appreciate In Value
3. Provides Massive Tax Benefits
4. Uses Leverage
5. Gives You Equity
6. Provides inflation resistance

Cash Flow

First and foremost, let’s talk cash flow! Cash flow is perhaps the biggest benefit of investing in real estate. Anything that generates cash flow is the greatest investment you can make. Unlike other types of investments, real estate generates passive cash flow, which means you truly make money while you sleep. Sounds great right? Cash flow makes real estate really stand out.

When you invest in a real estate asset, you’re buying the asset to rent it out to tenants, who then pay you for the opportunity to live in, or otherwise use, your property. Once you pay all your expenses, the rest of that
rent check is yours to keep, aka, your cash flow. Robert Kiyosaki likes to point out that cash flow is what the rich aim for so that their lifestyle is maintained by that constant flow of cash, rather than a job, which could end.

How cash flow works

Let’s look at a simple single family example. Let’s say you put down $25,000 to buy a single-family rental for $100,000. On the first of the month, your tenant sends you a rent check for $1,000. You use $500 to pay the mortgage, $350 for expenses and reserves. The remaining $150 is your passive cash flow. The tenant is paying your mortgage on the property, the expenses, and you collect the rest. Real is starting to look a lot like the greatest investment you can make. But wait! There’s more!

Appreciation

Now we can discuss appreciation. No we aren’t talking about how you like your friends. We’re using the finance definition. Real estate values tend to go up over time, This means that, more than likely, the value of a rental property will go up during the time that you hold it. This is what’s referred to as appreciation and it’s one of the reasons why real estate is one of the of the greatest investments you can make. Are you sensing a theme here?

There are certainly exceptions to this, but in most cases, the value of real assets tend to go up.

This is very different from other assets you might own, like your car, which likely goes down in value over time.
While appreciation is a nice-to-have, it’s not a guarantee, which is why we always buy for cash flow, first and foremost.

Tax Benefits

Next are the tax benefits. Tax benefits are a huge way that your money goes to work for you in real estate and one of the most important reasons that real estate is one of the greatest investments you can make.

The tax code is written to reward certain types of endeavors, of which real estate is one. Tom Wheelwright, a noted CPA and tax specialist, says the tax code is written to reward people for doing what the government wants. People love to live indoors! The government needs help from investors and provides incentives to provide housing.

Tax write-offs

When you invest in real estate, you get benefits of depreciation and mortgage interest deductions, as well as a whole host of write-offs for a number of other related expenses.

The power of paper losses makes a strong case for the best investment you can make

In fact, oftentimes, because of all the tax benefits, you’ll show losses on paper, while you are actually making money
through cash flow. The paper losses can play a big part in helping to offset some of your other income (i.e., income from your job). This means that your overall tax bill will likely be lower, even though your income will likely be higher. Moving on to leverage to really see the power of real estate.

Leverage

Moving on to leverage next. Let’s take a closer look at that purchase for a second. In this example, you bought a $100,000 rental home, but you’re not paying $100,000 in cash.

Instead, you’re paying $25,000 for the down payment, and your lender, the bank, brings the other $75,000 to the
table. The bank is helping you buy the property!

Why leverage rocks

However, the cash flow you make is based on the full $100,000 asset, not the $25,000 portion. Stop and read the last sentence again. Are you starting to see how real estate is the greatest investment you can make?

Amazing isn’t it? Your mind is blown. Real estate tends to have that effect on people once they begin understanding it.

You reap the rewards

Put another way, even though the bank put most of the money into the deal, the $1,000 rent check you collect from your tenant goes directly to you, not the bank.

The bank doesn’t take their 75% cut out of those rent checks. Sure, you still have to pay your mortgage and interest, but you don’t have to split your cash flow or profits with the bank. This is the power of leverage. You partner with the lender to create your money machine, and you get all of the upside. Not a bad deal!

The power of leverage

Just try and get a bank to loan you 75% to buy stocks. Seems ridiculous, right? Yet again, real estate shows why it is the greatest investment you can make.

Equity

As those monthly rental checks roll in, you’re able to use those to pay your mortgage, and thereby increase your equity in the property. That means that you don’t have to pay your mortgage from your own income. The rental property generates income to pay for itself.

Imagine you bought a TV that generated money to pay for its own Netflix subscription.

Let me know when you get that one to work, will you?

Your tenants build your equity for you

Given that your equity in the property increases with each mortgage payment you make, your tenants are essentially building that equity for you.

One more step

Once you build up significant equity in your property, you can consider strategies like a cash-out refinance or taking out a home equity line of credit (HELOC), which essentially allows you to borrow against your own asset. You can then put some of those refi or HELOC funds into another cash- flowing asset, and now your money is not only working for you but it is starting to clone itself.

Real estate is unlike any other asset class. It makes your money go to work for you, not just in one way, but in multiple ways. Here is a quick recap of why real estate is one of the greatest investments you can make.

1. Produces Cash Flow
2. Can Appreciate In Value
3. Provides Massive Tax Benefits
4. Uses Leverage
5. Gives You Equity
6. Provides inflation resistance

We want to make sure that it’s accessible to everyone. If you don’t want to be a landlord, that’s okay, we can show you how passively invest in apartment complexes and reap many of the rewards we just talked about.

Inflation resistance makes real estate the best investment you can make

We all know nothing is inflation proof, but real estate is one of the many hard assets that tends to hold its value during inflationary times. Don’t just take my word for it. Check out this article from Investopedia. Or better yet, if you prefer a more scholarly based answer, read this paper from the MIT School of Economics that states, “Retail and Apartment properties are complete inflation hedges.”

How to get started in real estate multi-family investing

If you want to be a hands-on (i.e., active) investor, you might want to explore rental properties or fix-and-flips. Check out Biggerpockets.com.

If you want to be a hands-off (i.e., passive) investor, you should consider multi-family real estate syndications.

The first step in starting in your real estate investing journey is to decide how hands-on you want to be.

One thing we found helpful was to find a group of people that were already investing and syndicating. This allowed us to start many great discussions and begin our education. We love to share what we’ve learned, so don’t hesitate to reach out and ask questions. We’re Here to Help

Who are we? Visit our about page or reach out and contact us. Want to invest with us? The SEC requires that we have a pre-existing relationship before we can offer a property syndication to you. Reach out and connect with us, so when our next opportunity becomes available, you will have the option to invest or not. If haven’t had at least a phone call or two, we can’t take your money.

Reach out and schedule a call today. Don’t let opportunity pass you by.

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