There are so many different cities/markets all over this country that are great for cash flow. Once you select a market, you then need to dig into specific submarkets. Just like in any city, there might be some areas you don't want to invest in. So, we dig in deep into the different submarkets to pinpoint which ones should be our targets.

So, why do we pick the submarkets that we do, and how that has led to our success so far.

In the syndication world, most operators are essentially running long-term flips. They improve the property to a point, raise rents, and three to five years later they can sell for a profit. Our longer-term hold approach is more about the cash flow coming in which differentiates us from the norm.

Before we even did the first deal that we raised from other investors, we invested in a syndication ourselves. We feel that vetting a deal is essential, but even a good deal can end up disastrous in the wrong hands. So, betting on the sponsor is number one. Usually, good sponsors will bring good sound deals. That said, what should you pay attention to when vetting a new sponsor?

This is a discussion that if we are not having it with our investors, we know it’s going in their heads. Do I invest in deals that are more appreciation or cash flow heavy? The JB2 Investments team came from the flip world where it was all appreciation and no cash flow to a mostly cash flow world with some appreciation. At this point, let's just say we sleep better in this new world

Recently, we raised funds for our last deal and took advantage of the opportunity to speak with various potential investors. What we learned is that some investors simply “get it,” but others have more fear and hesitation and need more information before making a move. Thus, we thought we would take the time to share with you what we learned, and what it takes to be a successful passive investor.

Inflation due to all the stimulus money out there has been a hot topic. It's commonly understood that real estate is a hedge against inflation. But, why is it a hedge, and what does that mean. We try to put this in layman's terms because we aren't economists either. In this article, we will explain what inflation is and how real estate is a hedge against it.

Once we’ve been through the hoopla of getting to the closing table, you might be asking yourself, now what? It’s important to consider what that first year will look like. There will be reporting and communication requirements to keep you informed, and there will be other needs as well.

We work with passive investors in our deals regularly. Each investor has different levels of sophistication. We have been in the passive role before investing in the deals of others. Most general partners claim conservatism but what that means is essential to know.

We have recently been reminded about the power of being focused on limited markets. We’ve always known that since before we were just focused in LA. Our competitive advantage continues to grow as we get to know the OKC market that much better. Now that our first asset there has been seasoned for more than 6 months, we feel that much more confident in the market. In this blog post, we will go over why being focused on specific markets is important.

When first analyzing a deal, one of the first things we look at is the current average rents. Are these average rents low, at market, or possibly too high (usually a good sign of them being too high is a higher vacancy)? Our ability to accurately predict where we can push the rents can easily make or break a deal. As you evaluate more deals in a specific market, you will have a higher degree of confidence in those assumptions. This blog will dig into the five steps we take to determine our conservative future rents.

Most of us have a general understanding of what a 1031 exchange is. However, most people have not done one or know someone that has. At JB2 Investments, we have completed three 1031 exchanges in the last 24 months. As such, we thought we would share with you the combined power of all these exchanges and how if planned correctly, a 1031 doesn’t have to be a stressful ordeal.

A frequent question we get from people when discussing out-of-state investments is how we can manage a large building from so far away. Thankfully the combination of a good property manager and technology allows us to do this effectively. Just like anything, communication is key in making this happen. In this blog, we will outline how we go about choosing a property manager and how we work with them to run operations smoothly.

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. This article will dig into four ways you can use those paper losses to offset other income. We will also discuss what can be done with those losses.

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). In our case, we usually put in some of our funds as well. In exchange for this effort, the GP gets a piece of the pie.

We have had the experience of coming from a rent control environment in Los Angeles (LA) to a non-rent control one in the Midwest. The vast difference between the two is so apparent. In this blog post, we will dig into why rent control sucks and why we decided enough was enough. There are a couple of benefits to rent control, but the downsides far outweigh them.

Many times, when someone pitches a deal to you, you may hear we are conservative in our approach.

What does that mean? It could mean so many things, and the interpretation of the ways of being conservative can be so different. Here at JB2, we pride ourselves on actually having a conservative approach to our underwriting. That's evident by our latest project already performing 67% better than projected in year 1.

In this article, we will dig into which levers can be pulled to be conservative and how we use them in our business.