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What Differentiates A Good Sponsor from A Bad Sponsor?

There is an element of risk in everything, especially when it comes to finances. For example, keeping one’s savings in a bank account, with the knowledge of exponential inflation, could be riskier than making a smart investment. But making that investment — choosing to act and commit to a strategy…

Gordon Gallic’s Advice on Track Record

From a 19-year-old who traded his long hair for his first real estate job to a passive investor with a history of successful deals and strong relationships, Gordon Gallic took quite a journey to get to where he is today. My brother Joel and I enjoyed hearing Gordon talk about…

Alex Upperman’s Perspective on Trust

How did Alex Upperman grow as an investor? How did he decide when it was time to move on from a property? How did he make his way from active to passive investing? He gave himself grace when things didn’t go the way he planned, learned from his mistakes and…

What are the 7 Keys to Passive Investing in Multi-Family Real Estate?

During lunch, at a pitch-focused investment conference, I had my first light bulb moment that then became the catalyst for the 7 Keys to Passive Investing in Multi-Family Real Estate. It became clear to me that conversations in this space tend to be one-sided. And listening to an investor over…

Internal Rate of Return | IRR Guide

The internal rate of return (IRR) is one of the most commonly used terms in multi-family real estate. In this 6 part series, Jesse defines the IRR, shows how to calculate it, and unveils the top 4 IRR mistakes in practice.   What is IRR? | IRR Guide Part 1…

The Outlook for Kansas City Real Estate

This article will discuss the outlook for Kansas City real estate, both in the near term and beyond. To give you a sense of what you can expect as a real estate investor in the Kansas City metro area, we will review two types of data. First, we?ll dig into…

Direct Investing in Private Equity Real Estate

Among the many ways to invest in real estate, the one you?ve probably heard the least about is direct investing in a private equity real estate fund. That?s unfortunate, because although this approach isn?t right for everyone, it could represent the strategy that best fits many investors? needs and profiles.…

How Leverage Affects Real Estate Returns

The best way to understand how leverage affects real estate returns is to first understand what a lever does. Physicists define a lever as a tool used to gain a mechanical advantage. For example, with the right placement of a physical lever?such as a beam or a stick?you can lift…

The Power of Compounding

For a quick glimpse into the power of compounding, consider what history?s most successful investor, Warren Buffett, wrote in his famous philanthropic pledge: ?My wealth has come from a combination of living in America, some lucky genes, and compound interest.? To understand why Buffett believes compound interest played such a…

How the Worcester Fund Works

Perhaps you?re considering investing in private equity real estate, and you?ve found the Worcester Fund. You?ve heard this investment vehicle has delivered greater-than-8% annualized returns since its inception and 10% for 2018. But you?d like to know more before taking the next step. Keep reading to learn how the Worcester…

What Is Private Lending?

For a real estate investor who needs quick access to capital or whose project does not fit into the narrow parameters of conventional lending institutions, private lenders can represent a viable alternative source of funding. In this post, we?ll discuss what private lending is and how it could help in…

What Is Value-Add Real Estate Investing?

Experienced real estate investors know that there is more to successful investing than simply purchasing a property, hoping the rents will generate positive cash flow each month, and then hoping to sell the property for a profit. There are many ways the owner of an investment property can find untapped…

The Benefits of Investing in Private Equity Investment Opportunities

As an investor today, you have access to wealth-building and income-generating opportunities that were previously available only to a small circle of wealthy individuals and institutions. One category of opportunities that have become accessible in recent years to average investors are private equity investments. Of course, just because you have…

A History of Real Estate Returns

You won?t find much data on the average selling prices of caves during hunter-gatherer times or stone-walled homes in agrarian societies. But economists and analysts have developed a wealth of data on real estate?s performance as an asset class over the last century. If you?re interested in investing in property,…

How a Local Market Focus Adds Value in Real Estate Investing

One question we at Worcester Investments often hear is why our real estate investing strategy is so focused on one local market?in our case, the Kansas City metro area. It?s a fair question. We have a large team whose experience spans all areas of commercial real estate, we own and…

The Benefits of Alternative Investments

Placing a portion of your portfolio in alternative investments can offer several benefits not available to investors who take the more traditional approach of entrusting all of their wealth to stocks, bonds, and cash. Let?s discuss a couple of the biggest advantages of this investment strategy.   Diversification of asset…

How Vertical Integration Adds Value in Multifamily Real Estate Investing

As you?re researching real estate investment firms, there?s one question you might want to ask each company, a question most investors overlook: Is your business vertically integrated? When it comes to investing in multifamily real estate, a vertically integrated operation can offer investors many advantages, some of which we?ll explain…

Tax Benefits of Real Estate Investing

Among the many advantages of investing in real estate are the unique tax benefits available with this asset class. Whether you are interested in becoming an active real estate investor by purchasing a piece of commercial property directly and operating it yourself, or becoming a passive investor by purchasing an…

How to Earn Passive Income in Real Estate

Before we dive into a discussion of the various ways investors can earn passive income in real estate, it?s worth taking a moment to address a pervasive myth about this topic, one that we at Worcester Investments hear repeatedly, even from experienced investors. Here?s the myth: Real estate ownership in…

Kansas City Real Estate Market Update

If you are looking for the right market to invest in commercial real estate, a number of factors?recent trends, current market data, and expert forecasts?all indicate that Kansas City could represent a viable opportunity. In a previous post, we at Worcester Investments highlighted the data explaining why Kansas City is…

Why Worcester Investments for Kansas City Multifamily Real Estate

The fact that you?ve found this post suggests you are already convinced of the merits of investing in multifamily property (its unique tax advantages, opportunities for positive cash flow, etc.) and that you are interested in the Kansas City market in particular. If you would like a quick refresher on…

Private Real Estate vs. Public REITs

If you have been considering adding commercial real estate to your investment portfolio, you have probably come across a common, ongoing debate among investors: whether to invest in private real estate or a public REIT. This post will discuss these two vehicles for investing in commercial real estate: how they…

How to Invest in Commercial Real Estate

When they think about investing in commercial real estate, many people assume such an investment means purchasing a commercial property directly?say, a retail building or an apartment complex. But there are other ways investors can benefit from the consistently strong returns that commercial property has historically delivered?particularly multifamily property. This…

The Case For Multifamily

Why Invest in Multifamily Properties Often when investors begin researching real estate as an asset class to invest in, they quickly find themselves overwhelmed with choices. Whereas stock and bond investing are relatively straightforward concepts, real estate represents many widely varying types of investments?each with their own benefits and risks,…

Why Kansas City?

Home to over 2 million people, Kansas City is the 28th largest metro in the country, a bi-state region composed of fifteen counties. Kansas City?s growth is fueled by lower business and living costs than most major metros, a well-educated, productive workforce, and the most geographically central major metro in…

Why Multifamily

KEY BENEFITS OF MULTI-FAMILY INVESTING   Positive Cash Flow Multi-family properties produce consistent positive monthly cash flows after paying expenses resulting in steady passive income.   Tax Advantages While there are several tax advantages available to real estate owners, Depreciation expense is perhaps one of the biggest because it reduces…

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