All Forum Posts by: Ben F.

Can someone explain the math behind the refi process.  How am i "pulling money" out of the deal

So its better to get my "principle" money out, keep hold of my equity, and now use this money to invest in another property.  Thats better than a larger payout in the future if we owned the building completely?  I understand the logic.  Thanks

I am a new investor in the real estate market, and I invested in a real estate opportunity.  The manager of the investment informed me that the property will be refinanced and i will receive back a large portion of my investment, while maintaining my equity share.   I do not understand the benefit of this approach.  Although the return on my investment is fantastic, is it not more prudent to take the refinanced money and pay off the mortgage and own the property outright and sell in the future for a larger profit?    

Is the market in Phoenix a good place to buy a property?  My friend is moving for a job opportunity and wants to buy a house immediately.  He is not sure if he will be there long term.  Everything that I read in the past describes Phoenix not as a great market.  If he needs to move in a year, will he be able to resell his house or will he be stuck with the purchase or take a loss?  

Thanks for the input

I am contemplating investing for the first time in a real estate venture.  It is for a large multifamily apartment building.  The big question is the projected sales price at the end of the five year holding period.  If interest rates continue to climb the sale price will be affected.  Is there any way to account for that risk?

2 properties totaling 397 units. Total equity is 6.073 million, Investor IRR 26.6%, investor return multiple 2.80X, investor average cash on cash 14%, cap rate year 1 8.7%, hold period 5 years.

I have investing in small business that sometimes involve a real estate component, but I have never done a straight real estate deal.  I don't even understand what these details mean.  Any advice would be much appreciated.

I am new to the real estate investing world.  I have an offer for an investment for a multiple family unit development.  As a passive investor, what should I be looking for?  Are there are clear red flags to be on the alert for?  What should be the rate of return and what should be the split between principle and investor?  How do I vet the project for inconsistencies?  Thanks