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Education

  • Posted By: Jesse Worcester

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.

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  • Posted By: Jesse Worcester

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 an object that would be too heavy for you to move without the lever.

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  • Posted By: Jesse Worcester

The Power of Compounding

In investing, compounding is the powerful process (some call it a force) by which the interest you’ve earned on an investment generates its own interest, and then over time that interest generates yet more interest.

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  • Posted By: Jesse 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 your next real estate investment.

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  • Posted By: Jesse Worcester

How the Worcester Fund Works

The Worcester Fund is a private equity real estate fund, an open-ended investment vehicle that provides accredited investors exposure to the lucrative commercial real estate market through a diversified equity stake in Kansas City multifamily properties and commercial real estate loans.

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  • Posted By: Jesse Worcester

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 revenue streams and create value through upgrades. These strategies are called value-add real estate investing.

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  • Posted By: Jesse Worcester

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.

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  • Posted By: Jesse Worcester

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.

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  • Posted By: Peter McHugh

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, reviewing this history of real estate returns is a good place to start.

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  • Posted By: Peter McHugh

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 manage thousands of units of multifamily property, and we’ve raised tens of millions of dollars in private equity to fund our growing portfolio. We’ve clearly developed a successful strategy for acquiring, renovating, developing, and managing real estate—so why not replicate this success by targeting more properties around the country, or even internationally?

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  • Posted By: Peter McHugh

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.

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  • Posted By: Peter McHugh

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 below. First, though, let’s briefly discuss what we mean by vertical integration.

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  • Posted By: Peter McHugh

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 equity stake in a private real estate fund, there are several tax benefits available to you that investors in other asset classes—such as stocks and mutual funds—do not receive. This post will discuss several of these advantages.

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  • Posted By: Peter McHugh

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 general is an example of passive income investing, because unlike operating a business or other types of active investments, with real estate you simply pay the property’s bills and then collect your rent checks.

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  • Posted By: Peter McHugh

Kansas City Real Estate Market Update

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 these topics, please see our recent posts on the benefits of multifamily investing and why Kansas City represents such a strong opportunity for real estate investors.

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  • Posted By: Peter McHugh

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 these topics, please see our recent posts on the benefits of multifamily investing and why Kansas City represents such a strong opportunity for real estate investors.

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  • Posted By: Peter McHugh

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 are similar, how they differ, and how you can determine which type of real estate investment is best suited to you.

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  • Posted By: Peter McHugh

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 post will discuss several ways to invest in commercial real estate.

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  • Posted By: Peter McHugh

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, each requiring different levels of knowledge and involvement from the investor.

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  • Posted By: Peter McHugh

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 the country.

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  • Posted By: Peter McHugh

Why Multifamily

Positive Cash Flow: Multi-family properties produce consistent positive monthly cash flows after paying expenses resulting in steady passive income.

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