For Investors Looking at Deals Online


Understanding Real Estate Recapitalizations vs. Acquisitions

Understanding Recaps vs. Acquisitions in Real Estate By Adam Gower Ph.D. When a sponsor offers an opportunity to investors, the property they wish to finance will either have just been acquired (or is under contract) or was purchased by the sponsor at an earlier time using a different financial structure than the one being proposed. This defines the essential difference between an acquisition and what is called a recapitalization (‘recap’) of the property. In an…

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What You Need to Know About Rent Control

The Unintended Consequences of Rent Control By Adam Gower Ph.D. Oregon just became the first state in the union to impose rent control statewide, yet an entirely predictable unintended consequence is that driving down single-family home values is also a likely result.   Communities across the United States are grappling with the question of how to provide workforce housing to people who would otherwise be priced out of the market. What tends to happen in…

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House Price Dynamics

How to Recognize a Housing Bubble By Adam Gower Ph.D. Past performance is not a guarantee for future results. This boilerplate disclaimer is standard wording for just about any financial investment we might make, but when it comes to buying a home it is often disregarded. Home-buyers tend to be driven by the idea that because prices went up last year, they must go up again next year. Same goes for speculators, who, seeing a…

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What is a REIT?

What is a REIT? By Adam Gower Ph.D. A common question that arises when investors first discover the option of investing in syndications via online crowdfunding websites is how they differ from Real Estate Investment Trusts, or REITs. One of the best comparisons to a REIT is a mutual fund; specifically, an equity mutual fund. With an equity mutual fund, you save yourself the trouble of having to compare and pick individual stocks by paying…

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A Starter Guide on Preferred Equity

A Starter Guide on Preferred Equity By Adam Gower Ph.D. Preferred equity is one of those financial concepts that a lot of investors believe they understand, and yet each may have a different concept in mind which can lead to confusion and misunderstanding. This article provides guidance on the definition of preferred equity, and how you can tell the difference between the different types. Simply stated, there are two types of capital that are used…

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A Primer on How to Utilize Opportunity Zones

A Primer on How to Utilize Opportunity Zones By Adam Gower Ph.D. When the Tax Cuts and Jobs Act of 2017 was passed, while the bill itself was a partisan one, there was also a concept with bipartisan origins that came along with it: Opportunity Zones. The idea is to stimulate inward investment in both businesses and real estate in specifically designated areas around the country that are considered economically distressed. To create this investment impetus,…

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All You Need to Know About Real Estate Guarantees

All You Need to Know About Real Estate Guarantees By Adam Gower Ph.D. When it comes to guarantees in the world of real estate, even veterans of the industry may have a few questions about their exact role and how to make sure that you get one that protects both you and your assets properly. To help with this issue, I am going to take a closer look at them to understand not only what…

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