Most Popular Blog Posts
Using Due Diligence to Avoid Losing Money
Once we start the underwriting process for target acquisitions, the due diligence process begins. There are somethings you do not need to do until you have it under contract. The goal is to identify possible issues as early on as possible.
Why JB2 is Investing in OKC
The JB2 Investments team first became interested in Oklahoma City in May 2020, after it became more challenging for us to find deals in Kansas City.
Offsetting Income with Passive Paper Losses
We usually preach how you will receive significant paper losses in the first year of an investment with us to offset other passive income. Those losses come from accelerated depreciation.
Syndication 101
In general, most people we speak with understand what a syndication is. But, for those less familiar, let's still start with that definition. Syndication is run by a professional investor (General Partner-GP) who finds property to acquire, then puts together both debt and equity (down payment, CAPEX, closing cost, etc.) from others (LP-limited Partner).
How to Vet a Real Estate Deal as an LP
We are writing this blog, so no matter what your level of sophistication, you will take in some nuggets that can help you when analyzing possible new investments.
How Passive Investments Net You a Greater Return
We often hear from others that they want to do a flip or buy a small multi-family unit independently. However, many of these people are busy with their successful day jobs and businesses. They don’t put enough weight into what those words mean. They don’t often understand the time and expertise it takes to get even smaller deals done.
How JB2 Finds the Best Real Estate Investment Deals
We’ve learned throughout our real estate careers that there are always good deals to be found if you look hard enough. The real estate market is competitive; therefore, we are continually searching for creative ways to beat the competition. In this blog, we will outline what we are currently doing to find deals.
4 Crucial Tips When Negotiating a Purchase Contract
As a real estate attorney, I regularly assist my clients, including JB2 Investments, in acquiring multifamily investment properties across the Midwest. Knowing I am a major nerd about contract drafting, Jonathan and Jeffery asked me to contribute an article to this blog sharing key insights and concerns I see for clients when negotiating purchase contracts for multifamily properties.
How the Economy Impacts Real Estate Business
In the early days of COVID, many did not know what the outcome would be on the economy or the real estate industry in general. The consensus was that when the first round of stimulus burned off, more pain would come. The assumption was that as a result, better buying opportunities would come. But as many of us have seen, quite the opposite has occurred. And with so much conflicting information in the news, it's hard to tell what's going on.
Using Due Diligence to Avoid Losing Money
Once we start the underwriting process for target acquisitions, the due diligence process begins. There are somethings you do not need to do until you have it under contract. The goal is to identify possible issues as early on as possible. This way, you waste as little time as possible.
How Balance in Our Lives Makes Us Better Investors
To get ahead in this life, not only do you need to work hard but smart. Part of that is balancing your life with other things that you enjoy. Though we love real estate, and for us, it's enjoyable. It's also not all that life is. Understanding what those other things are can be transformative. I am not telling anyone these are things you must do but just things that work for me. In this article, I will go through what I do to balance life and give myself the space to develop unique creative solutions that make us better investors.
Why We Decided to Raise Money from Others
At the beginning of 2020, when we first started to transition from the flip business to the buy hold business, things were different. This was after we had already bought our first building with our cash in Kansas City. Our idea was to continue this by using the capital we had to fund a couple of flips that would subsequently, along with other means, support our multi-family buy and holds.
Why JB2 is Investing in OKC
The JB2 Investments team first became interested in Oklahoma City in May 2020, after it became more challenging for us to find deals in Kansas City.
How to Build Wealth with Long-Term Investment Solutions
Lately, we have seen a handful of pitch decks with other operators. The common theme between them is they are essentially long-term flips. What we mean here is that they will significantly improve the property and sell in four to five years. The goal here at JB2 is quite the opposite, where we want to hold forever.
Why Cash-on-Cash Return is King
The Cash-On-Cash return is merely the cash profit earned off the cash invested on a deal. To state it more simply, it is the cash we make off of our money. The funny thing is, most investment shops do not focus on this metric.
Why We Left Flipping for Long-Term Holding
We recently tweeted about our past successes through our family flip business. During our decade of time in the industry, 22 million in profits were created with an average yearly return of 38% spanning across 400 Single Family Residence (SFR) deals. We’ve been asked several times about why we would leave such a lucrative business.
How to Increase Apartment Value & Capitalize On It
A good investment in an apartment should provide cashflow appropriately. The increase in value is just the added benefit. There are a few ways we increase value in buildings, and it's where the magic happens.
The Quick Way to Generate an Apartment Value
You may be reading this because you are interested in buying apartments. Maybe you want to know how we value apartments. Whatever the reason, we’re glad you are here and hope to provide you with some insight in this article.
Deep Dive Podcast Last Deal Norman Creek
Is it possible to put an asset under contract without putting boots on the ground? Apartment syndicator, Jonathan Barr, shows it is possible—not wasting your time but still ensuring the quality of the property. In this episode, he joins Dan Handford to talk about his acquisition of the 72-unit Norman Creek in Oklahoma City, OK.
Investing in Stocks vs. Multifamily Real Estate
Stocks and real estate are two of the most common types of passive investing. Most people invest in stocks as they typically have fewer barriers to entry. In this blog, we will outline the positives and negatives of investing in each one. We will also outline how investing in real estate can be comparable to investing in stocks and better.
How We Protect Our Investors Through Asset Management
Asset Management is one of the most important topics rarely talked about in the real estate investments industry. The role of the asset manager is to oversee the property managers. Asset managers are responsible to ensure the property is performing to budget or better.
How Passive Investments Net You a Greater Return
We often hear from others that they want to do a flip or buy a small multi-family unit independently. However, many of these people are busy with their successful day jobs and businesses. They don’t put enough weight into what those words mean. They don’t often understand the time and expertise it takes to get even smaller deals done.
5 Benefits of Multi-Family Syndication Investing
Are you attempting to further your real estate investing and trying to figure out where to invest your money? In this blog, we will lay out some options to help guide you to make an informed decision for your future real estate investments.
The Tax Stack Strategy E-Book
In this eBook we will show you how to lower that tax liability or eliminate it all together. We will bring to your attention 3 little known tax benefits that you can stack to maximize your savings. This isn’t just some theory, this is what we do. We will even walk you through our own specific deals and show you examples of how we used these creative benefits to shelter our own gains.