Real Estate Investing Basics

Almost every investor will be impacted by inflation at some point. Investors should invest in assets that potentially protect against inflation, and real estate comes with advantages to make that possible.

Overnight crypto millionaires can lose it all the very next afternoon. For investors with longer time horizons and longer-term goals, too much volatility in a portfolio is a serious problem. And fortunately, adding real estate is a highly effective counterweight.

Whether you're a beginner investor or looking for an investor, it's always great to get back to basics and understand a critical question: "how do real estate investments make money?" This question may seem intuitive but an understanding of real estate investing basics is crucial to being a smarter and successful investor.

Real estate investment currently presents one of the best opportunities to build wealth. But, jumping into the this financial asset class can be intimidating for beginner investors. These five resources will better equip you to tap into these opportunities.

If you're a more established investor, equity crowdfunding can be a great option. If you’re a really new investor, you should be buying REITs. These real estate investing opportunities are great way for beginner real estate investors to invest in real estate without having to become a landlord.

What do NFTs mean for real estate? Non-fungible tokens could impact or disrupt the real estate industry.

Consumers can feel the strain of inflation on checkbooks and wallets. Prices have increased more than 7%. Energy is probably the biggest individual component of the increase and housing prices could also rise as much as 5% over the upcoming year.

15% of all current U.S. stock market investors say they first began investing in 2020. How should these investors allocate their money? We've got the answers.

Crowdfunding is an exciting emerging option that could open the doors to higher-quality assets for everyday investors with lower costs and higher liquidity.

Save? Spend? Invest? The three ways you can spend money (and a year-end bonus from your employer). What's the smartest thing to do with your extra income?

The best way to spread Christmas cheer is singing loud for all to hear... or by making a list of some iconic real estate assets that boast Christmas cheer.

Almost 1,100 REITs are available in the U.S. alone. While we think residential real estate is the best real estate investment, the world of real estate investing offers numerous options that fit investors with different risk tolerances and financial goals. The most popular categories of REITs include residential, retail, office, and mortgage.

Having a passion for real estate and helping people in need can go hand in hand. The holiday season is a time to be more charitable so we encourage you to mix your passion for real estate and volunteerism to give back to the community.

The world of real estate is much wider than housing and retail space. Virtually any enterprise that requires the use of land and/or buildings is a potential opportunity for real estate investors.

Real estate investment trusts (REITs) are a great way to diversify your portfolio in an accessible way. A REIT is a corporation that invests in real estate on behalf of its shareholders and passes the proceeds on to them. REITs can be private, public, traded on a stock exchange, or non-traded. 

Buying a home isn’t for everyone. Homeownership makes more sense in some professions than others, and it usually isn’t advisable to buy a home unless you’re planning to stay in your city or geography for at least a few years. But for young professionals with stable jobs, starting a family, or planning to live in the same area for a while, a house is more than just another appreciating asset. A house is an important part of your net worth, a stronghold against financial risk, a source of passive income, and a financial milestone worth being proud of.

Diversification is key to mitigating downside risks and improving long-term returns. Real estate is one of the best ways to diversify your portfolio.

Spooky season and sweater weather are finally upon us! It’s our favorite time of year. Pop some popcorn, pull out your coziest blanket, light your favorite fall-scented candle and turn on the TV. The golden question: as real estate investors, which movie would we put our money on?

The simple definition of leverage is “using debt to increase your returns.” Borrowing money to finance projects enables investors to acquire more assets than they could otherwise afford, and to earn outsized returns proportional to equity invested.

Young professionals in their 20s or those just beginning to create an investment portfolio are likely unaccredited investors. REITs, direct investing, and crowdfunding are all ways that unaccredited investors can add real estate to their investment portfolio.

The SEC regulates securities to protect experienced and inexperienced investors and maintain market integrity.

Real estate is a complex business, especially for residential investors. Virtually everything that could affect the way people live and work is an important consideration — even something as mundane as the weather. For investors in some climates, weather may never be more than a passing consideration. But, tenant satisfaction goes hand-in-hand with strong returns, and even in mild climates, thoughtful touches can be well worth the capital.

The 2020 Olympics are in full swing! The athletes train for years to become the best in their sport, and we'd like to think real estate investors are comparable. Get your head in the game to start investing in real estate.

What is an accredited investor? How do you become one? What are investment options for accredited and unaccredited investors? The definition of an accredited investor is determined by the Securities and Exchange Commission (SEC) in Rule 501 of Regulation D.

Birgo Capital's series of Heartland real estate market profiles have analyzed interesting markets for multifamily investors. This week, we’re bringing this series home to the Steel City, the City of Champions, the City of Bridges — you already know it, the ‘Burgh.

We're going to the Buckeye State. We will look at Discovery City, the Arch City, Cap City, the Indie Art Capital, Cowtown, Cbus, and the Biggest Small Town in America — you guessed it, it’s Columbus. OH-IO!

CoStar and Yardi provide analytics on real estate markets. These softwares are priceless to real estate investors who love to dig up data about markets and properties. Just like American runs on Dunkin', Birgo Capital runs on CoStar and Yardi.

Real estate investment trusts (REITs) are companies that own or finance real estate assets, and make ownership shares available to investors. In order to hold the classification as such, REITs are are required by US law to distribute at least 90% of their taxable income as shareholder dividends.

All right folks, it’s that time again. Go ahead and grab some popcorn and a beverage, get some friends together, and sit back for another showdown of epic proportions with this week’s episode of Birgo Battles. Today’s contest features two familiar characters, each of which are beloved by their devoted fan bases. We’re talking about the classic residential real estate investor’s conundrum: single-family vs. multifamily. It’s an age-old debate, and while both of our contestants have merit, in life there are winners and losers. Today we’re going to look them up and down, side by side, and determine who we’re voting off the island… and who we’re going to keep on the squad.

Besties, we're afraid to ask you this...are you on TikTok? Is it all cap? Does it pass the vibe check? This article puts readers through TikTok and Gen Z boot camp. There is more than meets the eye with this platform.

In real estate, Fannie and Freddie provide liquidity to the marketplace. In this piece, we’ll pit them against each other for a blow-by-blow comparison between the two stalwarts of multifamily capital. Before we delve into what makes them different, let’s start with an overview of what actually unites them.

Like every other industry, real estate comes with buzzwords, and few are as popular or ambiguous as value-add. Everyone has their own definition, but what does it actually mean? From Birgo Capital's point of view, "improving returns by removing hurdles and accessing a property’s true value."

How does the Automotive Capital of the World compare to other metros in terms of economic trends, market analysis, and opportunities for real estate investors? We broke down Detroit's upsides and risks in this market profile.

What should investors look for in a market? What kinds of returns can an investor realistically expect? What is revenue growth going to look like over time? Discover the questions all investors should be asking when determining which market to invest time and capital into.

Take a drive with us just over an hour south of Pittsburgh to a West Virginia college town and home of the Mountaineers. You guessed it: we're analyzing the real estate market potential of Morgantown, West Virginia.

Earlier this month, we posted the first of a series of market profiles about emerging metros that we think could be promising for real estate investors interested in doubling down on the value proposition of workforce housing in the Heartland. Next up: The Flower/Flour City.

Our Heartland metro profiles analyze markets that we think could be attractive to investors. First up, we’ll be focusing on the Queen City, The City of Seven Hills, The ‘Nati… you guessed it, Cincinnati. 

365 days. 52 weeks. One year. We're looking back after one year of shutdowns due to the COVID-19 pandemic and what it meant for us as real estate investors.

Even in normal times, American investors get a little nervous every four years. Uncertainties about election outcomes become uncertainties about the investment landscape — and that reality is more pressing this year because of the crisis economy we’ve been living in (or trying to stay socially distant from) for the past eleven months.

Interest rates may or may not rise this year. How’s that for precise?! Our conviction is that real estate investors can generate strong returns in both low- and high-rate environments, but there are real strategic differences between those environments, and there’s no substitute for preparedness.

Food for thought: If you show up at the grocery store and need 200 tomatoes, some of them won’t be very fresh. If you only need 2 tomatoes, you can likely find 2 especially fresh specimens. Let's take a dive into how this relates to private equity real estate investing.

Ethical investing is a strategy where the investor's ethical values are the primary objective, along with good returns.

There are a multitude of metrics by which to measure this very tendency. You’ve probably sampled the alphabet soup before: IRR, GRM, MOIC, and more — a host of variations on the theme that have spawned a litany of sometimes-confusing terms.

The different real estate asset classes offer different capabilities and possibilities within the investment landscape.

Birgo Capital deeply believes investors should be adequately informed regarding all elements of their investment holdings and the costs associated with them. As such, private equity fees are a key factor when determining which fund and fund manager to invest.

In this next installment of our private equity real estate terminology series, we’re going to take a look at one of the most important – and potentially confusing – investment metrics: the internal rate of return. 

Making money in your sleep. Mailbox money. Both of these terms are often used to describe "passive income." Read how to generate passive income through real estate.

What factors should an investor consider when evaluating a private equity real estate fund manager? Let’s take a look at four key determinants of fund sponsor performance.

In early March 2020 as stay-at-home orders spread across the country, owners of workforce housing assets held their breath as they waited to see whether tenants who couldn’t work from home would pay rent. Investors across the country – Birgo Capital included – shifted from a posture of aggressive acquisitions to one of hoarding cash and halting new deals. While we are a far cry from back to normal, some patterns have emerged that inform our perspective about continuing to acquire stabilized but underutilized multifamily housing in the Heartland.

Investing in “commercial real estate” often seems like a logical next step for serious investors who want to gain best-in-class exposure to the real estate asset class. However, it’s easy to become overwhelmed after realizing that commercial real estate encompasses a significant variety of property types. Birgo Capital is here to help introduce investors to commercial real estate property types. Let's take a brief look into each commercial real estate asset type.

Real estate investing may seem daunting, especially with a plethora of terminology and phrases. Birgo Capital's Josh Fischer breaks down one of these terms – the cash-on-cash return.

Tiptoeing into the world of real estate private equity fund investing can be intimidating because the structure and terms can seem difficult to digest. Let's explore the structure and unique features that exist within private equity real estate funds. 

Real estate investors know that interest rates are one of the most important economic factors to consider when monitoring the investment landscape. But interest rates are also a complicated topic! Today, Birgo Capital is sharing some considerations for how changes in interest rates impact real estate investments.

At Birgo Capital, we know that an understanding of cap rates is essential. For new investors in real estate, picking the right property to start an investment portfolio can be a daunting task. After all, purchasing an investment property is no small feat. Any time you’re putting your money on the line, it’s important to make an informed decision.

Why does Birgo Capital dive right into workforce housing real estate while others shy away from it? And what’s our secret that’s led us to a 99.5% collection rate of our budgeted top line through a pandemic?

Birgo Capital discusses the four main types of real estate investment strategies: Core, Core-Plus, Value-Add, and Opportunistic. Which strategy supports your real estate investment goals?

Why workforce housing apartments is an almost-magical place to allocate capital for vigilant investors like Birgo Capital.

Birgo Capital's rent collection took a hit in late March, but April and May were solid. How is June shaping up? Dan Croce, Principal at Birgo Capital, shares a deep-dive look into the data.

Through COVID-19 and associated economic shutdowns, real estate investors have largely been focused on how these events will impact revenue. However, multifamily investors must also be thoughtful about other components of the cash flow equation - particularly the impact this recession will have on expenses. In this post, Birgo Capital will highlight a few key areas of consideration for the impact of the coronavirus recession on operating expenses.

In a new economic landscape, these tips from Birgo Capital can help you find stability in real estate.

As the corona-dust begins to settle, many investors are wondering how to know when it is the right time to begin acquiring real estate again. Here is how we are thinking about acquisitions during a pandemic at Birgo Capital.

In this three-part series, we’ll share our point of view on the risks and rewards of real estate investing in light of current circumstances, recommendations on the safest real estate investments during economic volatility, as well as how Birgo Capital is actively navigating this season.

What is a private equity real estate fund? A private equity real estate fund allows investors to combine their capital together to invest across a diversified portfolio of professionally selected and managed real estate properties. Today Birgo Capital is sharing why America's wealthiest are choosing private real estate funds to earn passive income in real estate.

“The wise young man or wage earner of today invests his money in real estate.” – Andrew Carnegie, billionaire industrialist

Real estate private equity is increasing in popularity as an alternative asset class. Pittsburgh is rapidly becoming one of the world’s best locations for long-term real estate investment. Provided is an overview of both — the Pittsburgh Real estate market and the opportunities that abound specifically in private equity. Attached is our white paper Investing in Pittsburgh Real Estate: Private Equity