Achieve Investment Group

Menu

Year: 2023

The U.S. Dollar’s Impact on Passive Real Estate Investing: Trends and Insights

by
Passive Real Estate Investing

Passive real estate investing has become increasingly popular in recent years, with many investors looking for ways to diversify their portfolios and generate passive income. One of the most popular types of passive real estate investing is multifamily real estate investing, which involves investing in apartment buildings and other multi-unit residential properties. Multifamily syndication, where multiple investors pool their resources to invest in a large multifamily property, is also a common approach to passive real estate investing. Investors are currently facing both potential benefits and drawbacks due to the current strength of the U.S. dollar. However, one factor that can have a significant impact on passive real estate investing is the strength of the U.S. dollar. In this blog post, we will explore the trends and insights related to the U.S. dollar’s impact on passive real estate investing, with a particular focus on multifamily real estate investing and syndication. What is the U.S. Dollar and why does it matter? The U.S. dollar is the world’s primary reserve currency, meaning it is the currency that other countries hold in their reserves. Additionally, the U.S. dollar is the most traded currency globally and serves as the benchmark for many commodities, including gold and oil. The value of the U.S. dollar has a significant impact on the economy and global financial markets. When the dollar is strong, it increases the purchasing power of Americans and allows them to buy more goods and services. However, a strong dollar can also have negative effects on the economy, such as hurting exports and making it more expensive for foreigners to buy U.S. goods. The Impact of a Strong Dollar A strong U.S. dollar can have both positive and negative effects on passive real estate investing. On the one hand, a strong dollar can increase the purchasing power of foreign investors, making U.S. real estate assets more attractive. This can lead to increased demand for U.S. real estate assets, which in turn can drive up prices and increase returns for investors. On the other hand, a strong dollar can also make it more expensive for U.S. investors to invest in foreign real estate assets. This can limit the opportunities available to investors and reduce diversification options. The Strength of the U.S. Dollar and Real Estate Investing The strength of the U.S. dollar can have both positive and negative impacts on real estate investing, depending on the circumstances. When the U.S. dollar is strong, foreign investors may be more inclined to invest in U.S. real estate, as their purchasing power is higher. This can drive up demand and prices for U.S. real estate, which can benefit investors. On the other hand, a strong U.S. dollar can also make U.S. real estate more expensive for domestic investors, as they have to pay more for materials, labor, and other expenses denominated in foreign currencies. This can lower returns on real estate investments and make them less attractive. Multifamily Real Estate Investing and the U.S. Dollar Multifamily real estate investing has historically been a reliable investment option, with steady cash flows and long-term appreciation potential. However, the strength of the U.S. dollar can impact this asset class in several ways. First, a strong U.S. dollar can attract foreign investors to multifamily properties, increasing demand and driving up prices. This can be particularly true in high-demand markets, such as major metropolitan areas. Second, the cost of labor and materials can increase when the U.S. dollar is strong, which can reduce profit margins for multifamily investors. This can make it more challenging to find attractive investment opportunities, particularly in markets with high levels of competition. Multifamily Syndication and the U.S. Dollar Multifamily syndication is a popular approach to passive real estate investing, as it allows investors to pool their resources and invest in large, institutional-quality multifamily properties. However, the strength of the U.S. dollar can also impact multifamily syndication in several ways. First, a strong U.S. dollar can make it more challenging to find attractive investment opportunities, particularly in markets where prices are already high. This can make it more challenging for syndicators to find properties that meet their investment criteria. Second, a strong U.S. dollar can impact the returns that investors receive from multifamily syndication. If the cost of labor and materials increases, this can reduce profit margins and lower returns for investors. Conclusion The strength of the U.S. dollar has a significant impact on passive real estate investing. While a strong dollar can present challenges, investing in hard assets like real estate can help mitigate these challenges and provide stable long-term returns Passive real estate investing can be a lucrative way to diversify your portfolio and generate passive income. However, it is important to understand the impact that the strength of the U.S. dollar can have on this market. By monitoring currency trends and implementing currency risk management strategies, investors can mitigate the impact of currency fluctuations and maximize their returns. With careful planning and management, passive real estate investing can be a valuable addition to any investment portfolio.

Passive Real Estate Investing: Tax Benefits You Can’t Afford to Ignore

by

Passive investing has become increasingly popular in recent years, particularly in the real estate market. Passive real estate investing allows investors to generate passive income without actively managing a property. This strategy has proven to be a great way to earn a steady stream of income and build wealth over time. However, one aspect that is often overlooked is the tax benefits that come with passive investing. In this article, we’ll explore the tax benefits of passive investing, and how you can maximize your returns. Understanding Passive Investing Passive investing is a strategy that involves investing in assets that generate a steady stream of income without requiring the investor to actively manage the asset. In the real estate market, this can include investing in rental properties, real estate investment trusts (REITs), or crowdfunding platforms. Unlike active investing, passive investing doesn’t require investors to have hands-on involvement in managing the property or making decisions about it. Passive Investors and Taxes Passive investors enjoy several tax benefits compared to active investors. For example, the income generated from passive investments is typically taxed at a lower rate than active income. Additionally, passive investors can take advantage of tax deductions and credits that aren’t available to active investors. Passive Real Estate Investing and Tax Benefits Real estate is a popular asset class for passive investors, and it also offers several tax benefits. Here are some of the tax benefits of passive real estate investing: Depreciation: Depreciation is a tax deduction that allows investors to write off the cost of the property over time. This deduction reduces the investor’s taxable income, which can result in significant tax savings. Capital Gains Tax: When you sell a property for a profit, you are required to pay capital gains tax. However, if you hold the property for more than a year, you can take advantage of lower long-term capital gains tax rates. 1031 Exchange: A 1031 exchange allows investors to defer capital gains tax when they sell a property and use the proceeds to purchase another property. This allows investors to reinvest their profits into another property without paying taxes on the gain. Best Passive Income Investments for Tax Benefits Here are some of the best passive income investments for tax benefits: Real Estate Investment Trusts (REITs): REITs typically generate income through rental income and capital appreciation of their properties. As a shareholder, you can earn a share of the rental income generated by the properties without having to own or manage them directly. REITs also offer several tax benefits, including deductions for depreciation and interest expenses. Crowdfunding Platforms: Crowdfunding platforms allow investors to pool their money together to invest in real estate properties. These platforms offer passive investors the opportunity to earn a share of the rental income without having to actively manage the property. Crowdfunding investments also offer tax benefits, including deductions for depreciation and expenses. Dividend Stocks: Dividend stocks are stocks that pay dividends to shareholders. These dividends are typically taxed at a lower rate than regular income, making them an attractive option for passive investors. Maximizing Your Returns To maximize your returns from passive investing, it’s important to understand the tax benefits that come with it. By taking advantage of these tax benefits, you can reduce your tax bill and increase your net returns. Additionally, it’s important to choose the right passive income investment that aligns with your financial goals and risk tolerance. Conclusion Passive investing offers several tax benefits that can help investors maximize their returns. By understanding the tax benefits of passive real estate investing and other passive income investments, investors can reduce their tax bill and increase their net returns.

Achieve Wealth Podcast reaches 60K+ Downloads!

by
james kandasamy austin

We have great news to share with everyone! Our podcast “Achieve Wealth Through Value-Add Real Estate Investing” has reached 60,000+ downloads, and we couldn’t be more thrilled. This wouldn’t have been possible without the support of our dedicated listeners and followers, and we wanted to take a moment to express our gratitude. We are committed to delivering engaging and informative content that educates and inspires. With this achievement, we are motivated to continue bringing you the best of the best. If you haven’t already subscribed to our podcast then please do it. I would like to request you spread the word about our podcast and share it with your friends and colleagues. Your support means a lot to us, and it will help us reach even more people. What is Global Rank? This podcast is one of the top 2% of most popular shows out of 3,069,337 podcasts globally, ranked by Listen Score (the estimated popularity score). Join the listeners from over 25+ countries Check out these Recent Episodes

Unbelievable 60% Cash Out Refinance during this Economy by Achieve

by
james kandasamy austin

Dear Achieve Investment Group community, We are excited to share some great news with you! We have just achieved a 60% cash-out refinance of University Cove Apartments at an impressive 4.83% interest rate. This means that 45% of the cash-out will be distributed to our investors, while the remaining 15% will be set aside as a reserve. In just two years, we have increased the net operating income (NOI) of the property by an incredible 250%. This is a testament to our strong asset management skills, and our ability to approach deals like sharpshooters. It is especially impressive given the current challenging economic climate, where we have seen capital calls, foreclosures, and stop distribution events. Executing this refinance was no easy feat, particularly given the volatility in interest rates and our deadline of April 3rd, 2023 – the day 2023 property taxes were due. However, thanks to our new mortgage rate AI tool, we were able to successfully complete the deal. Quick decision-making got us this unbelievable deal! We put this deal under contract in three days. On day one I heard from the broker, on the second day I drove by it, and on the third day, we were under contract. Quick execution comes with years of experience, we were able to estimate rehab estimates, just by driving by and confident in moving forward with the contract. Many other groups were chasing the same deal but stu必利勁 ck with the NOI being upside down. This property was going downhill on forbearance during Covid, and we turned it around achieving great success. This is what you get with experience operators! We want to congratulate all our investors on this fantastic outcome. We believe that this is a testament to our commitment to creating new opportunities and achieving growth in challenging times. Get a Free Copy of my #1 Best-Seller Passive Investing In Commercial Real Estate GET IT NOW With an ongoing economic slowdown that’s cooling investment nationwide, one of the country’s most active housing markets is ready for its test. While Austin is well positioned to weather what’s ahead, caution is still advised. Read More

Real Estate Insights: Analyzing the Apartment Market Cycle with Glenn Mueller’s Report

by

As the economy continues to recover from the pandemic, the real estate market is experiencing some interesting shifts. One area that has been closely monitored is the apartment market. Glenn Mueller, a real estate professor at the University of Denver, has released his latest forecast on where apartments stand in the market cycle. According to Mueller’s report, apartment occupancies are expected to be flat at peak-equilibrium levels in the first quarter of 2023. However, there will be a slight year-over-year decrease of -0.3%. This is due to a new space supply boom in 2022 that is pushing occupancies down in many of the fast-growing second-tier markets. Mueller predicts that 14 markets will be in the hype supply phase of the cycle by 1Q23. This is a result of the strong supply response of the economy re-opening. Although demand growth is expected to settle back down to the more long-term average of 75,000 units per quarter, the national apartment asking rental rate is expected to increase by 2.3% in 1Q23. This increase is higher than the 12.3% experienced in 2021. Mueller forecasts that the national apartment asking rental rate will be up 15.9% year-over-year. It is important to note that the 10 largest apartment markets make up 50% of the total square footage of apartment space monitored by Mueller. These markets include New York, Los Angeles, Chicago, Dallas, and Houston, among others. Mueller predicts that the weighted national average will be affected by these markets. Overall, Mueller’s forecast provides valuable insights into where apartments stand in the market cycle. The hype supply phase in many second-tier markets may lead to lower occupancies, but the national apartment asking rental rate is expected to increase. Real estate investors and professionals should take note of these trends and adjust their strategies accordingly.

Hotel to Multifamily Conversion

by

Welcome to the second part of our Hotel to Multifamily Conversion series by James Kandasamy. In our last episode, we discussed the acquisition process of Salado Creek Apartments, which had initially been a hotel. Today, we bring you part two of our conversion journey. As a start after our purchase, we started with landscaping where Our team worked tirelessly to trim the trees and shrubs around the property. The hotel had deferred maintenance for a long time and it was worst during COVID. The process almost took 10 days to complete. We need a clean and well-manicured environment to attract good residents for our future multifamily. We also did some creative things with the multifamily conversion process. We tweaked 130 units from hotel to multifamily efficiency units. Since it’s a requirement to have closets in multifamily units, we modified an open space to an “open” closet. The toilet had a small door due to an older grandfathered-in code. We decided to add a “barn” door to save space to it. We decided to leave the PTAC instead of changing it to multifamily HVAC units as it’s not really needed. These are some of the creative ideas that we decided to do during the conversion process. At that time of the takeover, the occupancy rate stood at 9%, but we were confident that with the changes will be attractive to residents on a 12 months lease (instead of daily occupied units in the Hotel). The next part will focus on painting the exteriors and the importance of doing it as a part of the value-add. We are excited to continue this journey and cannot wait to see the final product. Stay tuned for our next episode, where we will share our progress with you. Watch Part Two

US Banks Sitting On Billions of Losses!

by

Moody’s Investors Service has initiated a review for possible downgrade of First Republic Bank and five other US lenders, indicating growing apprehension about the stability of regional financial institutions after the collapse of Silicon Valley Bank. – K.C. Conway, Commercial Real Estate Economist and Futurist The other lenders placed on review are Western Alliance Bancorp., Intrust Financial Corp., UMB Financial Corp., Zions Bancorp., and Comerica Inc. Moody’s decision was influenced by worries about the lenders’ dependence on uninsured deposit funding and the potential for unrealized losses in their asset portfolios.   Source: Russell Ward FTX and Silver Gate in TX, followed by SVB bank, have been deemed a total failure by both the Fed and bank regulators. They failed at their primary job by failing to anticipate the unintended consequences of the steepest and quickest interest rate increase in history. Additionally, there is a concentration risk failure by allowing the tech industry to become concentrated in a single bank, which is surprising considering the lessons learned after the 2009 financial crisis. It is puzzling why the Fed would allow this to happen in the tech industry but not in larger corporations such as P&G, GM, Ford, Tesla, etc… In light of the unintended consequences of rapid and successive interest rate hikes, it is unclear if inflation can remain the Fed’s central focus. There are no clear answers to these questions, and with the Fed’s FOMC meeting scheduled for next week, there is a greater than 50% chance of scaring the market even further. Only time will tell how this situation unfolds, and businesses will need to scramble to find ways to secure capital and determine where to invest their cash. With this backdrop, it is unlikely that any kind of CRE lending activity will occur. But, we want to take this opportunity to inform you that you can continue to have confidence in Achieve Investment Group. Our firm has ZERO exposure to Silicon Valley Bank, Signature Bank, First Republic Bank, and additionally stressed banks. Our risk management team has taken the necessary steps to ensure that your investments are protected, and we are continuously monitoring the market to adjust our strategies as needed. Our team of experienced professionals is constantly monitoring the market and making informed investment decisions on behalf of our clients. We believe that our disciplined approach and focus on long-term value creation will continue to serve our clients well, even in uncertain market conditions. Subscribe to our weekly newsletter to stay current with the updates. Join us for a Live Webinar “Passive Real Estate Investors Need To Know This Before Filing Their 2022 Taxes – Essential Tax Planning Tips And Strategies Before April 15th” With nationally recognized CPAs And Tax Strategists Amanda Han and Matt Macfarland. REGISTER FOR FREE Have You Missed Out On This Week’s “Multifamily Quick Hits?”   SUBSCRIBE TO OUR YOUTUBE CHANNEL

How We Created 6 Passive Investor Millionaires In 2022?

by
Passive Investor

Passive Income Millionaire Is Not A MYTH! Although not crashing like stocks or crypto, Commercial real estate is definitely slowing down and decreasing in value. It’s important to invest alongside an experienced operator, that has “Skin In The Game”. Here’s How We Countered The Market Volatility With Our Knowledge & Experience:- We sold 50% of our assets in 2022. Six Passive Investors Became Millionaires After The Sale Of Our Six Assets. Two were from Houston, one from Austin, and three were from San Antonio. All of them chose to Achieve Investment Group as their primary operator and invested heavily. Almost all tried diversifying for the initial two years of their investment learning period. However, after two years they realized that it was better to invest with a few “alpha” operators rather than diversify. They were extraordinarily successful. It is possible to earn more than a million dollars in three to five years without working at all. Passive investing is an elegant strategy for creating wealth. A majority of them are W2 employees who invested an average of $100,000 in each deal. They also invested heavily in deep value-add deals, which Achieve was very good at. These were based on their own personal investment life cycle—a concept discussed in Chapter 2 of my best-selling book. They took the bet, and they won big.