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The Best Ever CRE Show

JF2557: Being a Passive Investor in Apartment Syndications | Actively Passive Investing Show 57

The Best Ever CRE Show

Best Ever CRE

Business, Investing, Entrepreneurship

4.7996 Ratings

🗓️ 2 September 2021

⏱️ 18 minutes

🧾️ Download transcript

Summary

In today’s episode of the Actively Passive Investing Show, Travis dives into passive investing and the difference between preferred returns and cash on cash returns. He walks us through this commonly asked question, gives examples of preferred and cash on cash returns, and tells us what terms we need to be clear on with the operators of these deals before investing.  Click here to know more about our sponsors: Real Estate CFO Services | ThinkMultifamily.com/coaching | Rent Redi | Rentify Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

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1:05.0

Obviously that's going to be important to make sure that you understand and that you have a conversation

1:10.0

with the operator about what you're looking at,

1:12.8

whether those are net or gross numbers,

1:15.2

and what that means to you, the LP in the deal.

1:18.4

Quick disclaimer, the views and opinions expressed in this podcast

1:21.8

are provided for informational purposes only and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.

1:32.0

For more information go to best ever show.com.

1:35.1

Hey everybody and welcome to another episode of the actively passive show. I'm your

1:40.9

host Travis. In today's episode, what we're talking about is being a passive

1:47.3

investor in an apartment syndication, or I should say a real estate private placement of any sort and what's the difference between a

1:56.7

preferred return and a cash on cash return. I want to dive a little bit deeper into this. This is a question that working in investor relations for years I've been asked this question, but also seems like lately this has come up more and I just want to make sure that I address it and now I have a

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