A preferred return is the claim on profits given to preferred investors in a project. The preferred investors will be the first to receive returns up to a certain percentage, generally between 6% to 8%.

A sophisticated investor is someone who has sufficient income ($100K+), capital, experience, education within the investment class, and net worth ($350K+) to engage in more advanced investment opportunities.

To be an accredited investor, you must EITHER have a net worth of $1M+ (not counting your primary home) OR have an annual income of $200K+ as an individual ($300K+ for joint income) over the last 2 years.

In general, a “good” cash-on-cash (COC) return in multifamily real estate will be in range between 7-12%. However, although COC return may be considered good, multiple factors need to be analyzed alongside it.

In general, if you can purchase a multifamily property at a 4%-6% cap, it can provide with tons of room to upside cashflow potential and better ROI (return on investment).

Bonus depreciation is a tax incentive that allows a business to immediately deduct a large percentage of the purchase price of eligible assets, such as machinery, rather than write them off over the lifecycle of that asset.

A real estate offering memorandum is a set of terms and conditions that you require your buyer to sign before they commit to buying your property.