Key Takeaways A real estate syndication pools capital from multiple investors to purchase a property too large for any single investor to buy alone — typically commercial or multifamily. Syndication structures typically involve a general partner (GP) who manages the deal and limited partners (LPs) who invest capital passively; the GP takes an equity split […]
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Key Takeaways Funds from Operations (FFO) is a REIT-specific metric that adjusts net income by adding back depreciation and amortization — providing a more accurate picture of operating cash flow. FFO is not GAAP-defined and REITs calculate it slightly differently; always compare FFO on an adjusted basis (AFFO) which also subtracts recurring capital expenditures. A
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Key Takeaways A zombie property is a home where the homeowner has vacated believing foreclosure was imminent, but the lender never completed the foreclosure — leaving the property in legal limbo. The original homeowner remains legally responsible for property taxes, HOA dues, and code violations on a zombie property until the title actually transfers. Zombie
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Key Takeaways Form 2553 is the IRS election form a corporation files to be treated as an S-Corp — it does not create an entity, it changes how an existing corporation is taxed. S-Corp taxation can save real estate professionals significant self-employment tax by splitting income into salary (subject to payroll tax) and distributions (not
Form 2553: How to Use It & Save on Corp Taxes! Read More »
Key Takeaways A quiet title action is a lawsuit filed to “quiet” (resolve) competing claims of ownership to a property and establish clear title in court. Common triggers: adverse possession claims, boundary disputes, undisclosed heirs, clerical errors in historic deeds, or properties with no heirs after an estate. Quiet title actions must be filed in
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Key Takeaways Townhouses are typically fee-simple ownership (you own the land); condos are typically unit ownership only — the exterior, common areas, and land are owned by the HOA. Condo HOA fees are generally higher than townhouse HOA fees because they cover more of the building’s maintenance; both should be factored into the monthly housing
Townhouse Vs. Condo: Which is a Better Investment and Why? Read More »
Key Takeaways Rent-to-own (lease-to-own) allows a buyer to lease a property with an option to purchase it at a pre-agreed price at the end of the lease term. A portion of each monthly payment (the ‘option credit’) may be credited toward the purchase price — the exact amount and conditions should be clearly specified in
Rent-To-Own Homes: What They Are And How They Work Read More »
Key Takeaways A probate sale occurs when a property is sold as part of settling a deceased person’s estate — either to distribute assets among heirs or to pay estate debts. Probate sales typically take longer than traditional sales (3–6+ months) because the court must approve the sale price and terms in most jurisdictions. Properties
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Key Takeaways The FHA 90-day flip rule blocks FHA loans on properties that the seller has owned for less than 90 days from the last recorded deed. Exemptions include HUD resales, inherited property, employer-relocation sales, properties from non-profits or government, and studio/production-company sales. Between 91 and 180 days of ownership, FHA appraisers scrutinize the resale
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Key Takeaways Ownership interest defines the nature and extent of your rights in a property — fee simple (full ownership), leasehold (temporary right to occupy), easement (limited use right), and others. Fee simple absolute is the highest form of ownership — you own the land, structures, and air rights with no restrictions except government regulations.
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