Real Estate Syndication Benefits

Real estate syndications are simply compromised or contractual partnerships that are set up to purchase the shares of a real estate asset.

The partnership can be from a collaboration of a few people to a massive board of hundreds.

Depending on the structure of operations and the number of investors, a real estate syndicate can take any of the following formats.

  1. REITs
  2. LLCs
  3. LPs

There are other options but these three are the basic formats and the most popular ones.

Now the summary part is done. Let’s get into the benefits for syndicators of Real Estate Syndication.

Advantages for the syndicators

 

1.      You can use “Other People’s Money” (OPM)

The first and most important advantage of real estate syndication is you, a syndicator, can use Other People’s Money and make a living out of it.

Managing the fund to purchase, renovate or redecorate an asset is one of the hardest parts. And the real estate market doesn’t work without money. So, if you don’t have the capital to invest, there is no way you can accomplish amazing ideas and plans.

But when you become a syndicator, you get to invest on properties with other’s money. The reason why it is important is the fact that you are not risking too much. It’s your money plus other’s money plus your strategy.

2.      You can go “Big”

If you want to get involved in real estate with little to no money, chances are you won’t have a good start. Even if you get a good deal, the profit won’t make a great contribution to your net worth because small time investments on small assets are not the best money-maker.

But when you act as a syndicator, you will have OPM and the total capital will be 10-50 times or even more than you had. Now, instead of single apartments, you can invest in multistoried complexes.

3.      You’ll have the steering

Even though the investors have their capital at stake, you will be the person-in-charge to maintain and manage everything including how things work between you and the investors, which properties to invest in, changing terms with the investors, and everything related to the syndication.

Yes, they will have their say on the decision. But you will have a superiority in addressing any situation or making any important decision.

4.      Multiple sources of profits

Being the syndicator, you will have at least three major sources of profit.

  1. Acquisition Fees
  2. Asset Management Fees
  3. Equity participation

The acquisition fee is the small percentage or the flat fee that you get for finding the deal, structuring it, and acquiring the deal.

Asset management fees include the percentage or the amount you get for managing the asset to overseeing the people who are managing it. And lastly, you get the equity participation profits. The percentage could be from 5% to 50% or even more. It depends on what you and your investors agree on.

Please visit: Charles K. Carillo

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3 Amazing Content Marketing Tips

  • Content is king.

This hundred-year-old statement will live longer than you and me, for good reasons of course.

In this day and age of VR and 3D games, written words are still the best way to smoothly present information to the reader.

You can’t watch YouTube, movies, or any video clips for days but you can read a big novel without feeling any pressure or exhaustion.

If done right, content marketing can eventually kick out your competitions from the market.

Here are 3 amazing content marketing tips that will help your content be more impactful and effective.

1.Produce content that is important to your audience

Content should not just be words written to fill pages. They should have significance to your reader.

Say you are headphone manufacturing company and you found a new technology that will allow users to listen to an even wider range of sounds. Now, how would you market the technology and your headphones through blog posts?

  1. You can write 20-50 pages about technology and how the technology works or
  2. You can explain how technology helps the user and what are the advantages

Which one would you do?

The latter option of course!

Don’t put your efforts into explaining things. Put the time to produce content that can help your audience.

2.Keep it short and catchy – make it viral

Short and catchy – an ideal strategy to make things work.

Whether it is an advertisement tagline, a music lyric, or a book title, short and catchy wins the bet. That’s why you should also keep the title short and catchy while maintaining the relevancy of the content to the title.

Apart from the title, the content itself should be small and precise. No one likes to read a 7-page blog.

So, don’t try to overfeed your audience because,at the end of the day, they might just throw-up and never return to your site again.

Also, a small content has more chances to be viral than a lengthy 5-10pages longs article.

However, making viral content is not about the size only.  The content must have some potential to be loved and adored by everyone.

3.Make your content accessible and shareable in any platform

  1. You have created a blog post addressing an important issue.
  2. You kept the title short, catchy and relevant to make it go viral.
  • Now what?

Now it’s time for letting your content go viral.

  • How do you do it?

Making it easy to share.

Being viral and keeping the platform easy to spread or share is complementary to one another. Without a viral title and intro, there’s no way you can make people share it. Again, without letting people share it, there’s no way you can make your content viral. So, it’s important to have an easily accessible platform where people can read and possibly share with their friends and family.

For more info, Please visit: Charle’s Blog

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Legal & Organizational Structures for Real Estate Syndication

Real estate syndications are more popular than ever. New syndications are forming every day.

That being said, forming a new one comes with some challenges. One of these such challenges is choosing a legal and organizational structure.

Here’s a quick guide on the legal and organizational structures.

Real Estate Investment Trusts – REITs

Due to the similarities with corporations and trusts, REITs can be easily identified as one. However, there is a big difference between corporations or trusts and REITs. Unlike a corporation or trust, a REIT must distribute9/10 or 90% of total taxable income through the dividends.

To be a Real Estate Investment Trust, there are some requirements that the syndication must meet. First of all, there should be at least100 members on the board. Secondly, the shares should not be dominated by only a few board members. More specifically, less than five members, cannot hold more than half the shares. In other words, less than 5percent of the board members cannot hold more than 50% of the shares.

If your syndication meets the above conditions, you can choose to be a Real Estate Investment Trust and structure your legalities and your syndication accordingly.

An advantage of REITs is they can choose to be publicly or privately listed and traded on the stock exchange.

Limited Liability Companies – LLCs

Among the three I am mentioning today, LLC or Limited Liability Company structure is perhaps the most common legal and organizational structure. More than half of the Real Estate syndications chose to stick with this legal structure and the reasons are obvious.

Flexibility of control and returns is an advantage of LLCs. Apart from the flexibility in return distribution and control, these entities also offer a lot of flexibility in matters like how the taxes should be dealt with.

In this type of legal and organizational structure, there must be some active organizers or sponsors who will be the managing members. They will also be the passive capital investors as regular members of the LLC.

Limited Partnerships – LPs

Like Limited Liability Companies, Limited Partnerships are also popular to the sophisticated Real Estate investors.

These legal structures have a GP or General Partner who will act as the sponsor or organizer. His work is to control and take charge of the active investing.

Other partners or members will be designated as limited partners. They are basically the passive investors who will provide the capital for investment. So, in this case, the passive investors or limited partners must trust the general partner’s (GP) judgment because he will be the one to oversee everything.

More sophisticated investors sometimes choose to organize in Delaware for tax and privacy reasons.

Bottom Line

There are other reasons to form a Real Estate Syndication. But these three are the most popular ones. However, choosing one of them will depend on how your relationship with your partner is, how many investors you have onboard, how much capital can you raise, etc. So everything boils down to you and your fellow investors or partner’s abilities and desire.

For more info, please visit: Real Estate Investor

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How To Add Value To Your Business; 5 Simple Ways

Want to add value to your business?

But don’t know how?

Here are 5 simple ways you can do that.

1.Quality adds the most value

Short and simple.

The more quality you offer to the customers, the more value you add to the business.

Offering better quality not only brings more customers but also beats down the competitors.

Remember, your customers only think about what they are getting. The quality of your product or service has the utmost importance to them. Also, by quality, your customer doesn’t mean it to be more durable or more beautiful. They only want more utility.

2. Be unique

Say your favorite food chain is Taco Bell. You like their Tacos. But what if McDonalds, Burger King and others started to make only Tacos.

Will they be as good as they are if they only served one thing?

No.

That’s why it is important to be unique. Otherwise, there’s no value to your business.

So, to be successful and to add value, your ideas should be unique and capable enough to attract customers.

But being unique doesn’t mean you’ll have to make things complicated for your customers. Simple is the new best.

Apple and other great companies have succeeded by making things simpler and this is what you should try to achieve. Make things simpler and easier for your customers while maximizing the utility.

3. Make the process easier

Making the product convenient and simple for use is not enough to grow your business and add value to it. You will also need to make the purchasing experience simple and easy to follow.

Don’t overwhelm your customer with too many options and blanks to fill. People don’t like when they have to fill empty boxes or provide details.

What you can do is use a drop down menu with possible answers so that your customer can easily choose an option. This is just one example. There are other tweaks that you can make to your purchasing process for convenience. For example, add a summary of the purchase on the checkout page. Also, you can put easy-to-follow instructions on the site so that your customers don’t get confused.

4.Ensure a good customer support experience

This is perhaps the most underrated ways of growing your business.

When people usually talk about adding value to the business by increasing sales, others think about marketing. But there are other ways people can increase sales and add value to the business. It’s by satisfying the customers.

There are 2 simple steps to satisfy the customers. First, satisfy with your quality of product and secondly, satisfy with your service, especially customer service.

When your customers see that you care about your customers, not just the sales, they will be more likely to purchase from you. They will have confidence in you and eventually become a loyal customer.

5.Imply promotional offers & discounts

Lastly, keep them excited with different promotional offers. People like offers or discounts and when someone sees “10% off”, “With X you get Y” – these types of phrases, they tend to force their mind to make a purchase. This is just how the human mind works. We want free stuff all the time.

Posted in Internet Tagged with: ,

Stocks vs. Real Estate, Which One Should You Go With?

Before making a decision on whether to invest in real estate or stocks, you must know how they have performed over the last 100-150 years.

Once you know how they have done in certain circumstances over the years, you can figure out which one is going to benefit you the most.

For that, you can also add a few other factors along with “performance over the years” to correctly evaluate which one should you invest in. 

Return Rate

The first thing you need to assess is how much you receive in returns from stocks and real estate.

According to the data for the last 150 years or so, it’s clear that residential real estate had almost an average of 7% per annum. Equities are also around 7%. And bonds came in much lower.

Of Risk & Volatility

Treasury Bonds are usually low return and low risk where on the other hand, equities are high risk and high return.

The last century was a roller coaster for the stock market. One year you see a 29% increase and the following year it comes down 18%. That’s how it was.

Residential assets were always the ones to ensure high return with minimum risks.

Entering in Real Estate vs. Getting Started with Stocks

Crowdfunding in real estate is comparatively new. Before the idea of crowdfunding was introduced into the real estate industry, it was difficult to get into real estate without a big amount in reserve. Also, it was difficult to invest in a new property if you had any less than the amount needed to buy that. Even though crowdfunding made it easier these days to invest in Real Estate, before the last 10-12 years, it was really not everyone’s cup of tea.

On the other hand, stocks were very easy to get involved with. People didn’t need a huge amount to get started with stocks which led many new investors to enter the stock market.

So, in comparison, stocks were easier to get into than real estate because people had to have a solid plan and a big pile of money in reserves to get into the real estate industry. Also, this is the very reason why Real Estate is much more stable.

The bottom line is – stocks are easy to get into compared to real estate a decade ago and real estate was and is much more stable than stocks.

Measuring Risk vs. Return, Sharpe Ratios

It might seem difficult to measure risk against return but thanks to William Sharpe’s, ratio that is made easier.

First, you take the asset’s returns and cut out the returns of a short-term, no-risk alternative (such as the US treasury bills). It will give you the additional return from the asset over a -low-risk or risk-free invest. It’s called the Risk Premium. Then you need to simply divide that Risk Premium over your asset’s volatility, measured by the annual standard deviation in value.

For more info, Please visit: charleskcarillo.com/real-estate-investor/

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5 Simple Ways to Make WordPress Site More Secure (SSL)

Search engines like Google are always insisting that sites should use SSL and be more secure in order to land in a good position on the search results. This mean having https:// in front a URL instead of http:// does have its perks.

Here’s how you can make your WordPress site more secure.

Step One: Installing a Secure Certificate

Many hosting companies include a secure certificate with their standard plan. If you are hosting your site with one of these companies then you have nothing to worry about.

But if by chance your company doesn’t offer the secure certificate installation with the standard package, you can get in contact with them and learn what the options are.

Once you have the secure certificate installed, it’s time for you to proceed to the next step.

Step Two: Using a Secure URL

After you are ensured that a secure certificate is installed, it’s time for you to login to WordPress Dashboard and go through the procedure.

Go to Settings and then click on General. Now change both the WordPress URL and your site URL. Use https:// at the very beginning and then save it from the option at the bottom of the page.

Don’t freak out if you are automatically logged out from WordPress.

Step Three: Ensure all the Web Pages are Rendering Securely & Address Mixed Content Issues

There are some free plugins available that you can use to perform the task. I used “Really Simple SSL” to do this myself.

Once you install and activate it, you’ll see a notice suggesting you to enable SSL on your site. Enable it and then go to the plugin settings.

Make sure the option “Auto Replace Mixed Content” is checked. You’ll see three ways to force any request for an http:// to an https:// version of the page.

For most of you, enabling 301 .htaccess redirect will work. To make sure the trick worked for you, look for the green padlock on the left side of your site address. You can check it in any address bar of any browser.

If you don’t see the green padlock, check what’s causing the problem. It can be caused by a customization option for a theme or any technical setting on your site. Take professional help if you can’t figure out what’s wrong.

Step Four: Fixing internal linking

Next step will be fixing the internal links you used in your posts, comments, etc.

You can manually do this yourself or take help from plugins or settings. Just make sure the links are now starting with https:// instead of http://.

Step Five: Adjust Google Search Console and Google Analytics Setting

Add the secure version of your site’s URL to GSC but don’t delete the old one.

Then go to Google Analytics and click on the website from your dashboard. Click on the Admin option and choose Property Settings.

Click on the drop-down menu under the Default URL. Then choose https:// and hit Save. On that page, you’ll find an option named Adjust Search Console. Now connect your Google Analytics account for your website to the new https:// version. Hit Done and that’s it. You are done.

For more info, please visit: https://charleskcarillo.com/

Posted in Web Development Tagged with: ,

5 Common Reasons Why Real Estate Syndicators Fail

During my time in this industry, I’ve seen many real estate deal sponsors fail to close a deal and walking out from real estate completely; but why?

Where some of them are doing great with deals, the majority is failing to hold their ground, mainly because of some common mistakes they made in approaching a deal or how they run things.

1. Not having a structured approach to a deal

Crowdfunded real estate or as we call it – syndicated real estate deals, can be structured or approached in different ways. Equity crowdfunding, donation based or debt options are popular. Also, there are regulation; A, D & A+ filings along with other variations.

Despite having several options for raising money and distributing returns, sponsors still find it difficult to draw investors’ attention, mainly because they fail to approach the deal or structure it correctly.

Without making the structure appealing to your target investors, there’s no guaranteed way you can get partners and good deals.

2. Not having enough to seal the deal

Not raising enough money is one of the main reasons the deals are not closed. This can happen for several reasons. Either the investors are not interested in that deal or the assessment of total expenditures, including; legal fees, marketing, researching, etc. was in correct.

To make sure this doesn’t happen, it’s best to approach a deal only if you think that your investors will be interested in it. Also, if you are having trouble assessing the cost for the deal or if you don’t have time to do it, hire someone who can help but never approach without assessing the total cost.

3. Using Software

Sponsors these days have a number of options to raise the money for the deal. They can either do it offline or leverage existing 3rdparty crowdfunding portals or simply launch their personal web portal with the help of a white label syndication software.

To run things better for the team and attract more money from their investors,it’s important to make the whole process smooth and easy to follow.

4. Get Organized with the Legal Paperwork

The legal paper work and laws are cumbersome in real estate. Without knowing them and understanding properly, it is not easy to stay away from lawsuits involving the investment & return terms, ownership, etc.

Also, the Feds, CFPB, and SEC won’t be leaving you any holes where investors& sponsors can escape from the complications. That’s why it’s important to be in touch with a good law firm who has a lot of experience in this particular sector.

Also, it’s important to have agood attorney, experienced in the field as well. And while making the decision regarding the attorney and the law firm, it’s best to budget the fees and expenses.

5. Keep the investors involved with deals

Investors are always looking for options where they can invest and get the return as soon as possible. They don’t like to stay idle, they get impatient too quick. That’s why it’s important that you offer them new deals and opportunities to invest. If you can’t provide them with ample opportunities to invest, chances are they will put a hold on any business relationship you have with them.

Click here for Real Estate Investor Information

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3 Great WordPress Survey Plugins

No matter what kind of website you are running, if you want to increase conversion, you must listen to your audience. Yes, polls on WordPress sites can be of use in some cases but in other cases when you require your target audience to rate via stars or use images, there’s no other way but using a WordPress Plugin for surveys.

The best thing about these plugins is they can be used for collecting specific information and if needed, you can export the results for any manual use.

Here are the 3 best WordPress Plugins for surveys that can help you know your audience better and interact with them in many ways.

1. WPForms

WPForms is a widely known Plugin that lets you create contact forms in minutes. But they have poll and survey forms in the stack when you purchase the pro plan.

WPForms has an easy drag and drop building and editing option that allows anyone, with or without any prior experience, to create their own form for a survey without needing to know any coding or scripts. Your audience or user can input these survey forms with different types of data, stars, images or just plain text.

These forms can be embedded in any WordPress posts and the results are easily exportable for sharing, printing or storing manually. Also, you can choose how you export the results.

Another great feature of WPFroms is you can export any preexisting form to create a new survey form within the plugin.

2. Polldaddy

Polldaddy comes with 15 different theme options. Also, you can choose from 3 pop-up styles to suit your needs.

With a simple drag and drop option, it is one of the best and simplest ways to create survey forms and display their results. And when you are done, you can close the survey at any moment, or preset the date to make the survey stop at any point.

To prevent any automated responses, the plugin is equipped with IP restriction powers, integrated password protection,and captcha registration.

If you want your participants to fill up the contact details, you can simply put a few questions so that you can use them to approach them later.

3. Survey Monkey

For offline or online accessibility at any time, Survey Monkey is a good option. Survey Monkey is an easy-to-use plugin that allows customizable branding.

With this Plugin, you can use prewritten questions to make the survey forms. The interface is very simple and newbies can easily navigate through it. A distinct feature of this plugin is you can ask questions based on different categories like customer feedback, demographics, research, etc. Also, the survey templates come with different questions that you can choose from. Exporting from Survey Monkey is easy. You can export the results in PDF, HTML or simple CSV. For online social platform uses, they can be shared with one click. Direct linking and embedding them also works with this plugin. The results are analyzed and the analysis can be found as pie charts, graphs or a table, which is customizable.

Please visit: Charles K. Carillo

Posted in Web Development Tagged with:

5 Ways To Add Style To Your Web Design

Do you own a pet grooming website?

Do you sell kids toy?

Do you sell nutritious food for pets sent to the owner’s doorstep?

Do you have a kid’s dress and accessories website?

 If “yes”, then hear me out.

What do you think all these businesses have common? They are for adorable kids or cute little puppies and kittens.

If you have something that involves kids or pets or you just want to make your site more adorable, the following things can help you.

1. Cute Images

This shouldn’t be on the list for many reasons, mainly because it’s obvious. You can’t make a site look adorable without using cute images related to your niche.

Say you have a site where you sell clothes and related products for kids. Now what image comes to your mind when you think of your product and your niche?

Isn’t cute baby images an obvious choice?

If you don’t have your own kids yet, or niece or nephew, don’t worry. There are lots of stock photo sites where you can get the images for free. But don’t limit the content to pictures only. Illustrations, vector arts, etc. counts too.

2. Picking The Right Color

Let me give you a scene.

Say you have two bedrooms. One is colored with the dark ash and deep red. Another room is colored with baby pink or a softer shade of orange.Now, which one will you choose for your kids?

Most likely the pink/orange room because these are baby colors. Same goes for your websites.

When you use the softer and lighter baby colors, your site automatically feels like a kid-friendly place and parents will also feel comfortable shopping from your site.

3. Don’t Use Bold Fonts

Remember the bold, heavy fonts used in men’s fitness training or equipment sites?

Don’t use those fonts. Those bold fonts give the visitors a masculine vibe which is not preferred for baby or pets related sites.

That’s why I always encourage these kid’s products or pet product businesses to use subtle fonts on the content.

Use the big and slim fonts that have curves and a few straight bends.

4. Don’t overwhelm your visitors with unnecessary information

This is true for all types of sites.

Keep things simple. Don’t put too much information since your visitors won’t appreciate it.

Keep the unnecessary information out of the product page. If you have any specific information that you want to let them know, put it in a box and place it on the side. Otherwise, your visitors will mix it up with the actual product details and any promotional announcements or offers.

5. Format the text or content

Also, formatting is a big part in keeping the audience engaged.

The basic rule for formatting the content on a site is basing them according to the priority.

The name of products is the most important part of the page. So, make sure it gets special attention. Make the fonts big and use a different color for a better contrast. Then the specifications or details will come to play. Use special characters if needed, maybe even use a bullet point. Like this, format everything from the name to the shipping details on your site. This way, your visitors will find it easier to get a hold of any information they want.

For more info, please visit: Charles K Carillo

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3 Best Real Estate Strategies to Meet Financial Freedom

Financial independence is different for everyone. Some think of it as having a steady cash flow of an amount that you need to survive the year or month and to some, financial independence means having more than one needs so that he/she can enjoy the dream lifestyle.

Even though we can’t agree on what financial independence means, we certainly can agree on the fact that real estate is a solid way to achieve financial independence.

If done right, real estate can make your dream lifestyle happen. But you need a solid strategy for that.

Here are the 3most effective strategies for your real estate venture which you can implement to meet your financial freedom.

1.Ensure cash flow through passive income like rental properties

Generating passive income through rental properties is of the most popular strategies out there. The popularity of rental properties bringing cash flow reached its peaks in the early 20th century and it is still holding its position. Till this day, it is one of the easiest and hassle-free ways to ensure you can pay your bills on time.

But being financially independent is much more than just paying the bills. For that, you need to look at your freedom number.

“What is the freedom number?”

Say, you need $200,000 a year to lead your dream lifestyle. This $200,000 is your freedom number.

To reach this number, you need to invest in a specific number of properties. You can find the number easily. Say each one of your rental units nets you $300 per month, after paying all the expenses. So, each is adding $3,600 to your income annually.

Now, how many units like this will you need to meet your desired freedom number (which is $200,000)? About 56 units.

Take the goal of investing in 56 units seriously and the freedom figure will come running to you.

2.Just buying the properties

This is very similar to the last strategy we discussed. However, in this situation, there’s no interest or mortgage to contend with. This cuts down the expenses and saves a lot of money for the long run.

Using this strategy, you can easily build up your portfolio which will allow you to appreciate the values. Once you buy the properties, there are a number of directions you can go to. You can either sell some of them while keeping the rest or you can rent them for constant cash flow, it’s your decision.

Also, if you feel like it, you can rent, upgrade or renovate the properties to increase its value.

3.Wait for it & then live off it

This one is quite the opposite of the first one we discussed.

Yes, you purchase the properties as I explained for the second strategy. But instead of looking forward to the instant cash flow, you wait. You hold on to the properties until their prices increase. This way, when you retire, you have some valuable assets that you can sell and the profit at that time will be enough for you to re- invest into other passive investments.

For more info, please click here: Best Real Estate Strategies

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