The financial structure of a real estate deal is referred to as the “capital stack”. The capital stack represents all the different types of capital invested into a real estate asset and the relationship between each category. Each layer has its own risk and return potential that is crucial for investors when deciding which type of investment is best fitting.
The 421a tax abatement program was created in 1971 during a period where residential construction was falling as many residents moved to the suburbs. This program created an incentive for developers to build multi-unit residential projects on vacant land. What will happen to developers now that it is expired?
Currently, the real estate market is in its expansionary phase where vacancy is declining while new construction is increasing. In NYC, properties sale prices and property rent are increasing as developers are working to fill the demand.
A source of income I want to talk about today is residual income, or passive income. This source of income is income that you continue to receive even after you retire from work. Imagine making money in your sleep and waking up wealthier. Well stop imagining because this is possible!
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