Tag: #foundations

Don’t be afraid to ask the hard questions

Jul 1, 2023

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Terence Critchlow

I almost got involved in a ponzi scheme. The only reason I didn’t end up losing a lot of money was sheer luck.
Your lawyer and CPA – don’t invest without them

Jun 17, 2023

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Terence Critchlow

If you hang around real estate investors for a while, you will always hear the disclaimer that “I am not a lawyer, CPA, or financial advisor”. You will even see it on each of my blog posts J.
What is a cost segregation and why should I care if I am not a real estate professional?

May 27, 2023

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Terence Critchlow

If you hang around commercial real estate investors for any length of time, you will hear the term “cost segregation” come up.
How I think about, and manage, risk in real estate investing

May 8, 2023

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Terence Critchlow

If you have been paying attention to the economy lately, you know there is a lot going on.
What do you mean, “my home is not an asset”?

Apr 22, 2023

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Terence Critchlow

If you have ever read the classic Rich Dad, Poor Dad [1] you have seen Robert Kiyosaki assert that your home is not an asset but rather a liability (note: if you haven’t read this book, you should, it is a classic and helps establish the mindset required to become financially independent). This is one…
Understanding common metrics defining returns: CoC, MOIC, and IRR

Apr 15, 2023

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Terence Critchlow

When evaluating different investments that would fall into the same bucket within your portfolio, it can be challenging to understand how they compare since they may have very different characteristic such as cash flow and time to completion (to know what your buckets are, you need to understand your personal investment philosophy). To help compare…
What is a “preferred return” and how does it relate to a “waterfall”?

Apr 8, 2023

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Terence Critchlow

When you start looking at syndications, you will hear a lot about “preferred returns” (also known as “prefs”), and “waterfalls”. These terms are thrown around a lot but not usually defined. So what do people mean when they are talking about them?
What does “active investing” in real estate mean?

Apr 1, 2023

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Terence Critchlow

When people think about real estate investing, what they typically think about is active investing. In active investing you do the work to make the investment succeed. And if you don’t do the work, your investment will likely not be successful. This is what a sponsor does, but you don’t have to be leading a…
Definition: What is an accredited investor?

Mar 11, 2023

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Terence Critchlow

An accredited investor is the term used by the SEC to refer to investors who are “financially sophisticated”. Accredited investors are able to invest in a wide variety of opportunities that normal investors are not – some of which (such as capital raises for tech startups) are much riskier than the investment options that are…
When should you use an IRA or other retirement accounts to invest in syndications

Mar 4, 2023

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Terence Critchlow

Standard disclaimer: I am not an accountant or financial advisor, and am not providing tax or financial advice, this article reflects my understanding of the rules as they currently exist and is not a recommendation on what you should do. I always recommend talking to your tax and financial advisors before making any financial decisions.