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NSpire sells Townhouse: 29% IRR, 193% profit

NSpire sells Townhouse: 29% IRR, 193% profit
NSpire Assets is pleased to announce that it recently sold Townhouse Apartments, a 112-unit complex it acquired February of 2013 in Ennis, TX. Investors achieved a total 193% profit, nearly tripling their money in less than four and a half years.  This resulted in a 29% annual IRR, when calculated using the
Read More...

2009-2016 NSpire Returns (IRR=33%)

2009-2016 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

NSpire sells Woods of Ridgmar: 25.9% IRR, 105% return

NSpire sells Woods of Ridgmar: 25.9% IRR, 105% return
NSpire Assets is pleased to announce that it recently sold Woods of Ridgmar, a 235-unit complex it acquired February of 2014 in Fort Worth, TX. Investors achieved a total 105% return on their capital, more than doubling their money in less than three years.  This resulted in a 25.9% annual IRR, when calculated
Read More...

2009-2015 NSpire Returns (IRR=33%)

2009-2015 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

NSpire sells Woods of Haltom: 30% IRR, 88% return

NSpire sells Woods of Haltom: 30% IRR, 88% return
NSpire Assets is pleased to announce that it recently sold Woods of Haltom, an 88-unit complex it acquired March of 2012 in Haltom City, TX. Investors achieved a total 88% return on their capital invested.  This resulted in a >30% annual IRR, when calculated using the schedule of distributed cash.  NSpire Assets had
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Breaking Ground on Luxury Tulum Condos

Breaking Ground on Luxury Tulum Condos
NSpire Assets is developing 21 luxury condos in Tulum, Mexico, one of the fastest growing resort areas in Mexico. NSpire received permits this summer and has broken ground. Over 40% of the units have been pre-sold at well above pro-forma pricing. As a result, NSpire Assets is currently exploring a
Read More...

2009-2014 NSpire Returns (IRR=34%)

What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

Fort Worth Up to Top-11 Rent Growth

Fort Worth Up to Top-11 Rent Growth
Fort Worth moved up to the top-11 metros nationwide in rent growth in 4Q (from top-18 in 3Q), with rent growth of 5.4%, according to MPF Research. This places Fort Worth at the top in Texas rent growth.   We are seeing amazing rent growth at Woods of Ridgmar, which we
Read More...

NSpire Sells Monterrey, 58% investor return in 17 months

NSpire Sells Monterrey, 58% investor return in 17 months
NSpire Assets is pleased to announce that it recently sold Monterrey Apartments, a 105-unit complex it acquired May of 2013 in Fort Worth, TX. NSpire Assets substantially upgraded the property through over $7,000/unit in exterior and interior upgrades, including a new playground, new pergolas, new on-site laundry, new roofs, faux wood
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Fort Worth Top-18 Rent Growth

Fort Worth Top-18 Rent Growth
Fort Worth made it into the top-18 metros nationwide with 3rd quarter rent growth of 4%, according to MPF Research. This places Fort Worth ahead of Dallas, which did not make the top-20.  This is not surprising, given Fort Worth has seen a delay in rent growth versus Dallas during the recovery.
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DFW supply vs. demand

DFW supply vs. demand
How does DFW supply compare with demand (absorption)?  Are we overbuilding? Here is an interesting set of articles from MPF Research: Part 1 Part 2 Part 3 Part 4 DFW Summary 4.9% of current supply is under construction 2.1% three-year average absorption rate (i.e. rate of additional units being occupied)
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Encouraging apartment demand trends

Encouraging apartment demand trends
Marcus & Millichap released their mid-year analysis on apartments: Job growth is accelerating, with DFW ranking 3rd nationwide in absolute growth.  Millennial demand is projected to further increase apartment demand, as employment improves and more young adults move out from their parents.  However, if lenders begin loosening lending standards, first
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NSpire Ridgmar rehab achieving rent upgrade targets

NSpire Ridgmar rehab achieving rent upgrade targets
The February 2014 acquisition by NSpire Assets, Woods of Ridgmar Apartments in Fort Worth, has completed most major exterior rehab projects, and the substantial interior unit upgrades are achieving targeted rental increases (~15%.)  The new interiors offer a substantially upgraded product with new counters, new cabinet faces, kitchen backsplash, ceramic tile tub
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Commercial Real Estate 10% higher than pre-recession peak

Commercial Real Estate 10% higher than pre-recession peak
The commercial real estate price index from Green Street Advisors is showing commercial real estate prices 10% higher than the pre-recession peak.  This is no surprise - all of the ingredients that drive property values are historically strong -- cap-rates are at historic lows (driven by low interest rates and
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Quarterly Rent Growth Hits 14-Year High

Quarterly Rent Growth Hits 14-Year High
Great article from GlobeEst.com: According to RealPage MPF Research Division, effective rents increased 1.9% in 2Q14 - reaching a 14-year high!   Rents are being aided by tight occupancy (nationwide rise from 95%/1Q14 to 95.6%/2Q14.)  "Units at brand new properties are being leased about as quickly as they can be
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Apartment Supply and Demand Growing

Apartment Supply and Demand Growing
Demographics are favorable for renters, as the 20-34 age group is growing in the US.  However, supply is also picking up, balancing out the increased supply.  As a result, vacancy may be bottoming out.  Here is a great article on Calculated Risk that shows the data. The 20-34 year old
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Texas Ahead in Job Growth; Rent Peak

Texas Ahead in Job Growth; Rent Peak
Texas is still outgrowing the nation on job growth, accordingly to a recent article from the Real Estate Center, April 2013 to 2014: 3.2% annual growth rate in Texas As compared with 1.7% for the US April 2014 5.2% Texas unemployment (seasonally adjusted) As compared with 6.3% for the US
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Warren Buffett on Real Estate

Warren Buffett on Real Estate
There is a great excerpt from Warren Buffett's latest annual letter to shareholders that discusses some of his experiences in real estate. Buffett epitomizes "value investing", a philosophy and strategy that we wholeheartedly embrace: from the discipline of "buying at the right price" to creating value with distressed properties and
Read More...

NSpire Assets acquires 235-unit Woods of Ridgmar

NSpire Assets has announced the acquisition of The Woods of Ridgmar in Fort Worth, TX (previously known as The Steppes Apartments and Ridgmar Hills.)  The Woods of Ridgmar is a 235-unit garden style community, built in 1969, that is located at 2200 Taxco Road and 2200 Ridgmar Plaza in Fort
Read More...

IRA may require a tax return?

IRA may require a tax return?
Think investing with your IRA into real estate means you don't pay taxes?  Not so fast. Let us caveat by saying that we are not tax professionals and we cannot offer tax advice.  However, we do have enough investors using IRA funds that we've started to figure out that there
Read More...

DFW: 2013 Review and 2014 Forecast

DFW: 2013 Review and 2014 Forecast
Hendricks Berkadia just released their DFW 2013 Review and 2014 Forecast, which has some interesting data: 2013 DFW Review 3.2% employment growth (98.7k workers) - one of US job growth leaders 2% population growth (to 6.85M) 14.7% median home price increase! 5.4% apartment vacancy (30-basis-point better than 2012) 3% annual
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Fed begins to taper QE3

Fed begins to taper QE3
The Fed announced this week that it plans to begin to taper QE3, given recent indicators of economic improvement. While the Fed has traditionally set short-term interest rates (which are practically zero), it also drove longer-term rates down with QE3 by buying back $85B/month in treasury bonds and mortgage backed securities.
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Woods Refinance Distributes 115%

Woods Refinance Distributes 115%
NSpire Assets is pleased to announce that we recently refinanced The Woods of Haltom into permanent debt (Fannie Mae, 4.78%, 7 years.)  After substantially improving the physical condition and operations of the property over 1.5 years, the refinance allowed us to unlock some of the property value gains, without selling
Read More...

NSpire Results: 3Q, 2013 YTD, Share Value, IRR

NSpire Results: 3Q, 2013 YTD, Share Value, IRR
NSpire just closed third quarter and is pleased to publish its results. This time we have expanded the results to break out 3Q, YTD (year to date), estimated share value increase (appreciation) as well as an estimate of overall return per year over the life of ownership (using IRR.) As always,
Read More...

3Q13: The Fed, Interest Rates, Cap-Rates

3Q13: The Fed, Interest Rates, Cap-Rates
What a roller coaster interest rates have been this year!  The year started with historically low interest rates, but after an indication from the Fed of an upcoming slow down in their mortgage buy-back program, rates rose >1%!  Then one week ago the Fed announced they would maintain the buy-back
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Police Chief Nominates Woods of Haltom

Police Chief Nominates Woods of Haltom
NSpire is proud to announce our nomination by the Haltom City Police Chief for the "International Crime Free Association" of the year award.  The attached letter goes into the hard history and reputation of the property, and the dramatic changes that were made to completely turn the property around. This
Read More...

36% NSpire portfolio annual return; what are you getting?

36% NSpire portfolio annual return; what are you getting?
What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

Texas Jobs Growing Faster than US

Texas Jobs Growing Faster than US
Texas jobs are growing at an annual rate of 2.8%, faster than the national average of 1.7%.   In the private sector (non-governmental jobs), the Texas growth rate was 3.2%, versus the national average of 2.1%.  Here is a good article on the topic on the Texas A&M Real Estate
Read More...

JOBS Act impact on Investor Solicitation

JOBS Act impact on Investor Solicitation
The JOBS act will allow solicitation to accredited investors (currently not allowed), though at a higher burden to the sponsors who must validate (with reasonable assurance) that their investors are in fact accredited.  The final rules and amendments are not in force yet.  This is an interesting video describing the
Read More...

Effective Loan Rate (higher than you may think?)

Effective Loan Rate (higher than you may think?)
Interest rates are at historic lows, tempting many to refinance.  And in most cases, it probably makes sense. But, you must consider your intended hold period and mortgage costs, to fully understand the effective rate you are paying to borrow those funds. With a short hold period, these costs could
Read More...

Marcus & Millichap Market Update

Marcus & Millichap Market Update
Good short video from Marcus and Millichap on Bloomberg TV: link. Below is a short summary. Across the board exuberance for Commercial Real Estate that appears to be rationale and sustainable. Apartments were the first to recover, and have now recovered to pre-recession metrics. Retail and Office are showing momentum. Good
Read More...

Risk in your financial projections

Risk in your financial projections
Ignoring risk in your financial projections?  Your projections are only as good as the assumptions they are built upon. Some assumptions are easier to get right than others. For example, data relevant today: rehab costs, entry cap-rates, submarket rents/occupancy. These are fairly straightforward.  But, what about the difficult ones? Data
Read More...

IRA in real estate? Know UBIT

IRA in real estate? Know UBIT
Investing IRA funds in real estate is a great option, one that we personally do, and often promote to our investors. However, your investments may be partially taxable, due to UBIT, "Unrelated Business Income Tax". Not only should this tax implication be considered when deciding whether to use IRA funds,
Read More...

Multifamily cycles… where are we?

Multifamily cycles… where are we?
You may not hear the "gurus" talk about this, but Multifamily is extremely cyclical, just like the economy as a whole.  Knowing where we are in the cycle can be the difference between making and LOSING money.  Just ask all the people who bought at the last Multifamily "peak" in
Read More...

Why we LOVE taxes in real estate?

Why we LOVE taxes in real estate?
OK... "LOVE" may be a bit strong.  But, real estate brings some tremendous tax benefits, benefits that we often forget when reviewing pre-tax investment returns in investment memorandums.   Our ownership entities are pass-through, so it is easier to focus on pre-tax, but we'll do a case study below post-tax.
Read More...

Road Trip Material: Monterrey

Road Trip Material: Monterrey
Thanks to everyone for joining our road trip last Saturday to Monterrey Apartments, our most recent acquisition. We really enjoyed the opportunity to meet with investors and discuss the highlights: Acquisition: How we found the property, put it under contract, and outbid our competitors Case Study: Property Analysis, Competitive Analysis,
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The One Safe Place in Real Estate

The One Safe Place in Real Estate
This is a great article by Mad Hedge Fund Trader (thanks Stephan for the pointer!) that talks about why the demand for low-end multifamily housing is set to explode, due to three primary factors: Explosive population growth in cash short immigrants  Generational demand of Gen X'ers and Millennials with lower
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Road Trip: Post Acquisition Monterrey (June 8)

Road Trip: Post Acquisition Monterrey (June 8)
Please join us the morning of June 8th to see a multifamily property that we just acquired, before we've had a chance to rehab it!  We acquired Monterrey Apartments on May 10th, only a few weeks ago. This event is absolutely free and will be a small forum where you can ask
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NSpire Assets acquires 105-unit Monterrey Apartments

NSpire Assets acquires 105-unit Monterrey Apartments
NSpire Assets has announced the acquisition of The Monterrey Apartments in Fort Worth, TX. The Monterrey Apartments is a 112-unit garden style community, built in 1969, that is located at 7100 W Vickery Boulevard in Fort Worth, TX.  The property has an attractive brick/siding exterior. Residents enjoy amenities such as
Read More...

IRR isn’t complex and you need it

IRR isn’t complex and you need it
IRR, or Internal Rate of Return, is a powerful calculation to measure the effective rate of return (aka yield or interest rate) of an investment.  It takes into account unequal distributions (cash flows) over time, and calculates the return each dollar in the investment makes while it is still in the investment.
Read More...

1Q13 DFW Multifamily Market Update

1Q13 DFW Multifamily Market Update
2012 was a great year for the DFW economy as well as the DFW apartment market: Population increased to 6,552,527 (up 1.4%) Employment increased to 3,001,100 (up 2%) Median Home Price increased to $161,370 (up 9.4%) Supply of new units continues to be low, keeping pressure on occupancies to stay
Read More...

NSpire Assets acquires 112-unit Townhouse Apartments

NSpire Assets acquires 112-unit Townhouse Apartments
NSpire Assets has announced the acquisition of Townhouse Apartments in Ennis, TX. Townhouse Apartments is a 112-unit garden style community, built in 1985, that is located at 1001 Biloxi Drive in Ennis.  The property has an attractive brick/wood exterior with pitched roofs.  Residents enjoy a waterfall swimming pool along with
Read More...

NSpire 2012 Results

NSpire 2012 Results
We just held our annual investor meeting, and wanted to take an opportunity to share our results from 2012. As usual, we believe strongly in full transparency, and as such, you will see a complete breakdown of our investments on our web-page, with enough detail that you can reverse engineer
Read More...

Multifamily Introduction and Case Study: February 12th

Multifamily Introduction and Case Study: February 12th
We would like to invite you to join us for a discussion on Multifamily Investing with Case Studies of our existing properties. Though we may have touched on the basics with some of you already, we would love the opportunity to dive a bit deeper into how these properties work
Read More...

Help… Distributions vs. Net Income?

Help… Distributions vs. Net Income?
If you are invested in an apartment complex, you should be receiving monthly financial packages that show the net income generated by the property.  If you are like me, you quickly scan down to the net income to try and figure out what distribution to expect.  But, then you notice
Read More...

2013 Tax Changes post Fiscal Cliff

2013 Tax Changes post Fiscal Cliff
We walked up to the "Fiscal Cliff" ...jumped...screamed... and then were yanked back up by our bungee cord! Phew!!  ... But, what changed?!?  This article goes into the changes in some detail. Ways this may impact your multifamily investments: Marginal tax rate increase to 39.6% for income >$400k. As passive income from
Read More...

Reviewing Operating Agreements

Reviewing Operating Agreements
Private Placement Memorandums and Operating Agreements can be daunting.  They are typically 75-100+ pages and they are difficult to read.   Just opening one can cause an instant headache, and you are guaranteed to fall asleep at least once before making it all the way through! We have been fortunate
Read More...

Are REITs Missing Out on Class C?

Are REITs Missing Out on Class C?
REITs (Real Estate Investment Trusts) tend to avoid class C apartment complexes, for a variety of reasons, including their difficulty to manage, expense to run, risk to turn around, as well as many of them being smaller properties that are too small for the large REIT portfolios. This has been
Read More...

Investor Testimonials

Investor Testimonials
We are fortunate to have GREAT PARTNERS in our properties. Having supportive partners who understand business and participate in a positive way when needed can make a huge difference in the success of the partnership. Of course, we like to think we have the best investors out there.  But, we
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Marcus and Millichap 2012 Update

Marcus and Millichap 2012 Update
Marcus and Millichap provided an update on the 2012 US Economy and Apartment Market Outlook last week.  In case you missed it, you can see the slides here.  Their message continues to be bullish on apartments.  Below are a few key highlights from the talk: The US Economy is improving
Read More...

Fed to keep rates low until mid-2015

Fed to keep rates low until mid-2015
The Fed announced a new open-ended program of quantitative easing, along with "Operation Twist", to help achieve its objectives of maximum employment and price stability.  Notably, the Fed declared that it will hold the federal funds rate between zero and one quarter percent until mid-2015.  Here is a great breakdown
Read More...

Multifamily Occupancy at a 10yr High

Multifamily Occupancy at a 10yr High
Multifamily occupancy is at a 10 year high.  A great article by MultifamilyInsight.net provides some insight into what is causing this to occur.  More people are moving to renting for the flexibility, location, and amenities. As the job market improves, young people can move out of home or away from roommates
Read More...

Why NOW is a great time for Multifamily

Why NOW is a great time for Multifamily
GlobeSt.com recently put out a great article on why now is a great time to invest in Multifamily. You can view the article here, or see the highlights below. More Renters The housing market has turned off many people from renting, with the risk of foreclosure, falling home values, along
Read More...

What is a multifamily property worth?

What is a multifamily property worth?
If you are in the market to purchase a property, or buy into a partnership, you may wonder what a property is worth.  Is it priced appropriately?  Are you, or the sponsor, potentially overpaying?  Unfortunately, valuing a property is not a simple equation and is certainly not straightforward.  However, you
Read More...

Selecting a Multifamily Sponsor (Avoid Sinkholes!)

Selecting a Multifamily Sponsor (Avoid Sinkholes!)
Multifamily is a great investment vehicle, that gives you the opportunity to own a cash flowing and asset backed business.  However, selecting an investment can be challenging for new investors.  Many of the investment deals offered will do well, but some will not. It is very challenging for new (or
Read More...

Road Trip Material: Woods of Haltom

Road Trip Material: Woods of Haltom
Thank you to everyone who joined our free road trip on August 4th at The Woods of Haltom! Please find the material that we shared (click here), including how we achieved in ONLY 5 MONTHS: 5.7% distribution (Marc->June, significantly ahead of projections) 73% to 98% physical occupancy increase Increased annualized
Read More...

Multifamily Death Spiral

Multifamily Death Spiral
The creation of a distressed property is a frequent topic of discussion among new investors.  What is wrong with these properties, and why did sellers allow them to get into such terrible condition? As discussed in prior blogs, distressed properties create an amazing opportunity to make money.  Similarly to foreclosed
Read More...

DFW Market is Hot

DFW Market is Hot
DFW Multifamily Real Estate is Red Hot.  Please find some great updates from MPF Research: Occupancy is >94% for the first time since the end of 2007. Up 1.4% Year-On-Year Class A/B are very full and raising rents This is pushing occupancy up in the lower end of the market
Read More...

Road Trip: August 4th

Road Trip: August 4th
Join us the morning of August 4th to see first-hand the ahead of schedule turn-around of our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions. We purchased the Woods of Haltom in March, and in only 4
Read More...

Inexperienced Investors Are Damaging Sector

Inexperienced Investors Are Damaging Sector
Multifamily offers an outstanding investment vehicle, for many of the reasons we discussed before.  Unfortunately, this opportunity, combined with historically low interest rates, record high occupancy and rents, as well as a lack of other suitable investment vehicles, is leading inexperienced investors to overpay for properties.  Properties should be purchased
Read More...

Case Study: July 11th

Case Study: July 11th
Join us the evening of July 11th to learn about multifamily investing and hear a case study on our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions.       We purchased the Woods of Haltom in
Read More...

Multifamily Partnership Return Structures

Multifamily Partnership Return Structures
Sponsor vs. passive investor share of profits can be split using a wide variety of mechanisms.  As an investor, it is absolutely crucial that you understand the details of the investment structure.  Unfortunately, I've found that my fellow investors in deals often do not read the fine print, and more
Read More...

Unrecoverable Multifamily Mistakes

Unrecoverable Multifamily Mistakes
Don't lose your investment in multifamily by mistakes that may be unrecoverable.  These may not only result in a lower return than planned, they could potentially even cost you more than you originally invested!  Read this before you make a multifamily investment. Insufficient Capitalization When you purchase a multifamily property,
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Top Reasons to Invest in Multifamily

Top Reasons to Invest in Multifamily
Investing in multifamily real-estate is a great way to build predictable long-term growth.  We all hate the ups and downs of the stock market, driven heavily by market sentiment and short-term wall-street goals.  It can be disappointing to look at the real growth of investments over the last decade, which
Read More...



2009-2016 NSpire Returns (IRR=33%)

2009-2016 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

2009-2015 NSpire Returns (IRR=33%)

2009-2015 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

2009-2014 NSpire Returns (IRR=34%)

What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

Fort Worth Top-18 Rent Growth

Fort Worth Top-18 Rent Growth
Fort Worth made it into the top-18 metros nationwide with 3rd quarter rent growth of 4%, according to MPF Research. This places Fort Worth ahead of Dallas, which did not make the top-20.  This is not surprising, given Fort Worth has seen a delay in rent growth versus Dallas during the recovery.
Read More...

Warren Buffett on Real Estate

Warren Buffett on Real Estate
There is a great excerpt from Warren Buffett's latest annual letter to shareholders that discusses some of his experiences in real estate. Buffett epitomizes "value investing", a philosophy and strategy that we wholeheartedly embrace: from the discipline of "buying at the right price" to creating value with distressed properties and
Read More...

IRA may require a tax return?

IRA may require a tax return?
Think investing with your IRA into real estate means you don't pay taxes?  Not so fast. Let us caveat by saying that we are not tax professionals and we cannot offer tax advice.  However, we do have enough investors using IRA funds that we've started to figure out that there
Read More...

NSpire Results: 3Q, 2013 YTD, Share Value, IRR

NSpire Results: 3Q, 2013 YTD, Share Value, IRR
NSpire just closed third quarter and is pleased to publish its results. This time we have expanded the results to break out 3Q, YTD (year to date), estimated share value increase (appreciation) as well as an estimate of overall return per year over the life of ownership (using IRR.) As always,
Read More...

36% NSpire portfolio annual return; what are you getting?

36% NSpire portfolio annual return; what are you getting?
What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

JOBS Act impact on Investor Solicitation

JOBS Act impact on Investor Solicitation
The JOBS act will allow solicitation to accredited investors (currently not allowed), though at a higher burden to the sponsors who must validate (with reasonable assurance) that their investors are in fact accredited.  The final rules and amendments are not in force yet.  This is an interesting video describing the
Read More...

Effective Loan Rate (higher than you may think?)

Effective Loan Rate (higher than you may think?)
Interest rates are at historic lows, tempting many to refinance.  And in most cases, it probably makes sense. But, you must consider your intended hold period and mortgage costs, to fully understand the effective rate you are paying to borrow those funds. With a short hold period, these costs could
Read More...

Risk in your financial projections

Risk in your financial projections
Ignoring risk in your financial projections?  Your projections are only as good as the assumptions they are built upon. Some assumptions are easier to get right than others. For example, data relevant today: rehab costs, entry cap-rates, submarket rents/occupancy. These are fairly straightforward.  But, what about the difficult ones? Data
Read More...

Multifamily cycles… where are we?

Multifamily cycles… where are we?
You may not hear the "gurus" talk about this, but Multifamily is extremely cyclical, just like the economy as a whole.  Knowing where we are in the cycle can be the difference between making and LOSING money.  Just ask all the people who bought at the last Multifamily "peak" in
Read More...

Why we LOVE taxes in real estate?

Why we LOVE taxes in real estate?
OK... "LOVE" may be a bit strong.  But, real estate brings some tremendous tax benefits, benefits that we often forget when reviewing pre-tax investment returns in investment memorandums.   Our ownership entities are pass-through, so it is easier to focus on pre-tax, but we'll do a case study below post-tax.
Read More...

IRR isn’t complex and you need it

IRR isn’t complex and you need it
IRR, or Internal Rate of Return, is a powerful calculation to measure the effective rate of return (aka yield or interest rate) of an investment.  It takes into account unequal distributions (cash flows) over time, and calculates the return each dollar in the investment makes while it is still in the investment.
Read More...

NSpire 2012 Results

NSpire 2012 Results
We just held our annual investor meeting, and wanted to take an opportunity to share our results from 2012. As usual, we believe strongly in full transparency, and as such, you will see a complete breakdown of our investments on our web-page, with enough detail that you can reverse engineer
Read More...

Help… Distributions vs. Net Income?

Help… Distributions vs. Net Income?
If you are invested in an apartment complex, you should be receiving monthly financial packages that show the net income generated by the property.  If you are like me, you quickly scan down to the net income to try and figure out what distribution to expect.  But, then you notice
Read More...

2013 Tax Changes post Fiscal Cliff

2013 Tax Changes post Fiscal Cliff
We walked up to the "Fiscal Cliff" ...jumped...screamed... and then were yanked back up by our bungee cord! Phew!!  ... But, what changed?!?  This article goes into the changes in some detail. Ways this may impact your multifamily investments: Marginal tax rate increase to 39.6% for income >$400k. As passive income from
Read More...

Reviewing Operating Agreements

Reviewing Operating Agreements
Private Placement Memorandums and Operating Agreements can be daunting.  They are typically 75-100+ pages and they are difficult to read.   Just opening one can cause an instant headache, and you are guaranteed to fall asleep at least once before making it all the way through! We have been fortunate
Read More...

What is a multifamily property worth?

What is a multifamily property worth?
If you are in the market to purchase a property, or buy into a partnership, you may wonder what a property is worth.  Is it priced appropriately?  Are you, or the sponsor, potentially overpaying?  Unfortunately, valuing a property is not a simple equation and is certainly not straightforward.  However, you
Read More...

Selecting a Multifamily Sponsor (Avoid Sinkholes!)

Selecting a Multifamily Sponsor (Avoid Sinkholes!)
Multifamily is a great investment vehicle, that gives you the opportunity to own a cash flowing and asset backed business.  However, selecting an investment can be challenging for new investors.  Many of the investment deals offered will do well, but some will not. It is very challenging for new (or
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Multifamily Death Spiral

Multifamily Death Spiral
The creation of a distressed property is a frequent topic of discussion among new investors.  What is wrong with these properties, and why did sellers allow them to get into such terrible condition? As discussed in prior blogs, distressed properties create an amazing opportunity to make money.  Similarly to foreclosed
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Inexperienced Investors Are Damaging Sector

Inexperienced Investors Are Damaging Sector
Multifamily offers an outstanding investment vehicle, for many of the reasons we discussed before.  Unfortunately, this opportunity, combined with historically low interest rates, record high occupancy and rents, as well as a lack of other suitable investment vehicles, is leading inexperienced investors to overpay for properties.  Properties should be purchased
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Multifamily Partnership Return Structures

Multifamily Partnership Return Structures
Sponsor vs. passive investor share of profits can be split using a wide variety of mechanisms.  As an investor, it is absolutely crucial that you understand the details of the investment structure.  Unfortunately, I've found that my fellow investors in deals often do not read the fine print, and more
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Unrecoverable Multifamily Mistakes

Unrecoverable Multifamily Mistakes
Don't lose your investment in multifamily by mistakes that may be unrecoverable.  These may not only result in a lower return than planned, they could potentially even cost you more than you originally invested!  Read this before you make a multifamily investment. Insufficient Capitalization When you purchase a multifamily property,
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Top Reasons to Invest in Multifamily

Top Reasons to Invest in Multifamily
Investing in multifamily real-estate is a great way to build predictable long-term growth.  We all hate the ups and downs of the stock market, driven heavily by market sentiment and short-term wall-street goals.  It can be disappointing to look at the real growth of investments over the last decade, which
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Road Trip Material: Monterrey

Road Trip Material: Monterrey
Thanks to everyone for joining our road trip last Saturday to Monterrey Apartments, our most recent acquisition. We really enjoyed the opportunity to meet with investors and discuss the highlights: Acquisition: How we found the property, put it under contract, and outbid our competitors Case Study: Property Analysis, Competitive Analysis,
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Road Trip: Post Acquisition Monterrey (June 8)

Road Trip: Post Acquisition Monterrey (June 8)
Please join us the morning of June 8th to see a multifamily property that we just acquired, before we've had a chance to rehab it!  We acquired Monterrey Apartments on May 10th, only a few weeks ago. This event is absolutely free and will be a small forum where you can ask
Read More...

Multifamily Introduction and Case Study: February 12th

Multifamily Introduction and Case Study: February 12th
We would like to invite you to join us for a discussion on Multifamily Investing with Case Studies of our existing properties. Though we may have touched on the basics with some of you already, we would love the opportunity to dive a bit deeper into how these properties work
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Road Trip Material: Woods of Haltom

Road Trip Material: Woods of Haltom
Thank you to everyone who joined our free road trip on August 4th at The Woods of Haltom! Please find the material that we shared (click here), including how we achieved in ONLY 5 MONTHS: 5.7% distribution (Marc->June, significantly ahead of projections) 73% to 98% physical occupancy increase Increased annualized
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Road Trip: August 4th

Road Trip: August 4th
Join us the morning of August 4th to see first-hand the ahead of schedule turn-around of our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions. We purchased the Woods of Haltom in March, and in only 4
Read More...

Case Study: July 11th

Case Study: July 11th
Join us the evening of July 11th to learn about multifamily investing and hear a case study on our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions.       We purchased the Woods of Haltom in
Read More...



Fort Worth Up to Top-11 Rent Growth

Fort Worth Up to Top-11 Rent Growth
Fort Worth moved up to the top-11 metros nationwide in rent growth in 4Q (from top-18 in 3Q), with rent growth of 5.4%, according to MPF Research. This places Fort Worth at the top in Texas rent growth.   We are seeing amazing rent growth at Woods of Ridgmar, which we
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Fort Worth Top-18 Rent Growth

Fort Worth Top-18 Rent Growth
Fort Worth made it into the top-18 metros nationwide with 3rd quarter rent growth of 4%, according to MPF Research. This places Fort Worth ahead of Dallas, which did not make the top-20.  This is not surprising, given Fort Worth has seen a delay in rent growth versus Dallas during the recovery.
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DFW supply vs. demand

DFW supply vs. demand
How does DFW supply compare with demand (absorption)?  Are we overbuilding? Here is an interesting set of articles from MPF Research: Part 1 Part 2 Part 3 Part 4 DFW Summary 4.9% of current supply is under construction 2.1% three-year average absorption rate (i.e. rate of additional units being occupied)
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Encouraging apartment demand trends

Encouraging apartment demand trends
Marcus & Millichap released their mid-year analysis on apartments: Job growth is accelerating, with DFW ranking 3rd nationwide in absolute growth.  Millennial demand is projected to further increase apartment demand, as employment improves and more young adults move out from their parents.  However, if lenders begin loosening lending standards, first
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Commercial Real Estate 10% higher than pre-recession peak

Commercial Real Estate 10% higher than pre-recession peak
The commercial real estate price index from Green Street Advisors is showing commercial real estate prices 10% higher than the pre-recession peak.  This is no surprise - all of the ingredients that drive property values are historically strong -- cap-rates are at historic lows (driven by low interest rates and
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Quarterly Rent Growth Hits 14-Year High

Quarterly Rent Growth Hits 14-Year High
Great article from GlobeEst.com: According to RealPage MPF Research Division, effective rents increased 1.9% in 2Q14 - reaching a 14-year high!   Rents are being aided by tight occupancy (nationwide rise from 95%/1Q14 to 95.6%/2Q14.)  "Units at brand new properties are being leased about as quickly as they can be
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Apartment Supply and Demand Growing

Apartment Supply and Demand Growing
Demographics are favorable for renters, as the 20-34 age group is growing in the US.  However, supply is also picking up, balancing out the increased supply.  As a result, vacancy may be bottoming out.  Here is a great article on Calculated Risk that shows the data. The 20-34 year old
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Texas Ahead in Job Growth; Rent Peak

Texas Ahead in Job Growth; Rent Peak
Texas is still outgrowing the nation on job growth, accordingly to a recent article from the Real Estate Center, April 2013 to 2014: 3.2% annual growth rate in Texas As compared with 1.7% for the US April 2014 5.2% Texas unemployment (seasonally adjusted) As compared with 6.3% for the US
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DFW: 2013 Review and 2014 Forecast

DFW: 2013 Review and 2014 Forecast
Hendricks Berkadia just released their DFW 2013 Review and 2014 Forecast, which has some interesting data: 2013 DFW Review 3.2% employment growth (98.7k workers) - one of US job growth leaders 2% population growth (to 6.85M) 14.7% median home price increase! 5.4% apartment vacancy (30-basis-point better than 2012) 3% annual
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Fed begins to taper QE3

Fed begins to taper QE3
The Fed announced this week that it plans to begin to taper QE3, given recent indicators of economic improvement. While the Fed has traditionally set short-term interest rates (which are practically zero), it also drove longer-term rates down with QE3 by buying back $85B/month in treasury bonds and mortgage backed securities.
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3Q13: The Fed, Interest Rates, Cap-Rates

3Q13: The Fed, Interest Rates, Cap-Rates
What a roller coaster interest rates have been this year!  The year started with historically low interest rates, but after an indication from the Fed of an upcoming slow down in their mortgage buy-back program, rates rose >1%!  Then one week ago the Fed announced they would maintain the buy-back
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Police Chief Nominates Woods of Haltom

Police Chief Nominates Woods of Haltom
NSpire is proud to announce our nomination by the Haltom City Police Chief for the "International Crime Free Association" of the year award.  The attached letter goes into the hard history and reputation of the property, and the dramatic changes that were made to completely turn the property around. This
Read More...

Texas Jobs Growing Faster than US

Texas Jobs Growing Faster than US
Texas jobs are growing at an annual rate of 2.8%, faster than the national average of 1.7%.   In the private sector (non-governmental jobs), the Texas growth rate was 3.2%, versus the national average of 2.1%.  Here is a good article on the topic on the Texas A&M Real Estate
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Marcus & Millichap Market Update

Marcus & Millichap Market Update
Good short video from Marcus and Millichap on Bloomberg TV: link. Below is a short summary. Across the board exuberance for Commercial Real Estate that appears to be rationale and sustainable. Apartments were the first to recover, and have now recovered to pre-recession metrics. Retail and Office are showing momentum. Good
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Multifamily cycles… where are we?

Multifamily cycles… where are we?
You may not hear the "gurus" talk about this, but Multifamily is extremely cyclical, just like the economy as a whole.  Knowing where we are in the cycle can be the difference between making and LOSING money.  Just ask all the people who bought at the last Multifamily "peak" in
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1Q13 DFW Multifamily Market Update

1Q13 DFW Multifamily Market Update
2012 was a great year for the DFW economy as well as the DFW apartment market: Population increased to 6,552,527 (up 1.4%) Employment increased to 3,001,100 (up 2%) Median Home Price increased to $161,370 (up 9.4%) Supply of new units continues to be low, keeping pressure on occupancies to stay
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2013 Tax Changes post Fiscal Cliff

2013 Tax Changes post Fiscal Cliff
We walked up to the "Fiscal Cliff" ...jumped...screamed... and then were yanked back up by our bungee cord! Phew!!  ... But, what changed?!?  This article goes into the changes in some detail. Ways this may impact your multifamily investments: Marginal tax rate increase to 39.6% for income >$400k. As passive income from
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Are REITs Missing Out on Class C?

Are REITs Missing Out on Class C?
REITs (Real Estate Investment Trusts) tend to avoid class C apartment complexes, for a variety of reasons, including their difficulty to manage, expense to run, risk to turn around, as well as many of them being smaller properties that are too small for the large REIT portfolios. This has been
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Marcus and Millichap 2012 Update

Marcus and Millichap 2012 Update
Marcus and Millichap provided an update on the 2012 US Economy and Apartment Market Outlook last week.  In case you missed it, you can see the slides here.  Their message continues to be bullish on apartments.  Below are a few key highlights from the talk: The US Economy is improving
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Fed to keep rates low until mid-2015

Fed to keep rates low until mid-2015
The Fed announced a new open-ended program of quantitative easing, along with "Operation Twist", to help achieve its objectives of maximum employment and price stability.  Notably, the Fed declared that it will hold the federal funds rate between zero and one quarter percent until mid-2015.  Here is a great breakdown
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Multifamily Occupancy at a 10yr High

Multifamily Occupancy at a 10yr High
Multifamily occupancy is at a 10 year high.  A great article by MultifamilyInsight.net provides some insight into what is causing this to occur.  More people are moving to renting for the flexibility, location, and amenities. As the job market improves, young people can move out of home or away from roommates
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Why NOW is a great time for Multifamily

Why NOW is a great time for Multifamily
GlobeSt.com recently put out a great article on why now is a great time to invest in Multifamily. You can view the article here, or see the highlights below. More Renters The housing market has turned off many people from renting, with the risk of foreclosure, falling home values, along
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DFW Market is Hot

DFW Market is Hot
DFW Multifamily Real Estate is Red Hot.  Please find some great updates from MPF Research: Occupancy is >94% for the first time since the end of 2007. Up 1.4% Year-On-Year Class A/B are very full and raising rents This is pushing occupancy up in the lower end of the market
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NSpire sells Townhouse: 29% IRR, 193% profit

NSpire sells Townhouse: 29% IRR, 193% profit
NSpire Assets is pleased to announce that it recently sold Townhouse Apartments, a 112-unit complex it acquired February of 2013 in Ennis, TX. Investors achieved a total 193% profit, nearly tripling their money in less than four and a half years.  This resulted in a 29% annual IRR, when calculated using the
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2009-2016 NSpire Returns (IRR=33%)

2009-2016 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

NSpire sells Woods of Ridgmar: 25.9% IRR, 105% return

NSpire sells Woods of Ridgmar: 25.9% IRR, 105% return
NSpire Assets is pleased to announce that it recently sold Woods of Ridgmar, a 235-unit complex it acquired February of 2014 in Fort Worth, TX. Investors achieved a total 105% return on their capital, more than doubling their money in less than three years.  This resulted in a 25.9% annual IRR, when calculated
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2009-2015 NSpire Returns (IRR=33%)

2009-2015 NSpire Returns (IRR=33%)
This is a recurring post that we like to calculate, so we see how our multifamily portfolio is performing. What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such
Read More...

Breaking Ground on Luxury Tulum Condos

Breaking Ground on Luxury Tulum Condos
NSpire Assets is developing 21 luxury condos in Tulum, Mexico, one of the fastest growing resort areas in Mexico. NSpire received permits this summer and has broken ground. Over 40% of the units have been pre-sold at well above pro-forma pricing. As a result, NSpire Assets is currently exploring a
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2009-2014 NSpire Returns (IRR=34%)

What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

NSpire Sells Monterrey, 58% investor return in 17 months

NSpire Sells Monterrey, 58% investor return in 17 months
NSpire Assets is pleased to announce that it recently sold Monterrey Apartments, a 105-unit complex it acquired May of 2013 in Fort Worth, TX. NSpire Assets substantially upgraded the property through over $7,000/unit in exterior and interior upgrades, including a new playground, new pergolas, new on-site laundry, new roofs, faux wood
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NSpire Ridgmar rehab achieving rent upgrade targets

NSpire Ridgmar rehab achieving rent upgrade targets
The February 2014 acquisition by NSpire Assets, Woods of Ridgmar Apartments in Fort Worth, has completed most major exterior rehab projects, and the substantial interior unit upgrades are achieving targeted rental increases (~15%.)  The new interiors offer a substantially upgraded product with new counters, new cabinet faces, kitchen backsplash, ceramic tile tub
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NSpire Assets acquires 235-unit Woods of Ridgmar

NSpire Assets has announced the acquisition of The Woods of Ridgmar in Fort Worth, TX (previously known as The Steppes Apartments and Ridgmar Hills.)  The Woods of Ridgmar is a 235-unit garden style community, built in 1969, that is located at 2200 Taxco Road and 2200 Ridgmar Plaza in Fort
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Woods Refinance Distributes 115%

Woods Refinance Distributes 115%
NSpire Assets is pleased to announce that we recently refinanced The Woods of Haltom into permanent debt (Fannie Mae, 4.78%, 7 years.)  After substantially improving the physical condition and operations of the property over 1.5 years, the refinance allowed us to unlock some of the property value gains, without selling
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NSpire Results: 3Q, 2013 YTD, Share Value, IRR

NSpire Results: 3Q, 2013 YTD, Share Value, IRR
NSpire just closed third quarter and is pleased to publish its results. This time we have expanded the results to break out 3Q, YTD (year to date), estimated share value increase (appreciation) as well as an estimate of overall return per year over the life of ownership (using IRR.) As always,
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Police Chief Nominates Woods of Haltom

Police Chief Nominates Woods of Haltom
NSpire is proud to announce our nomination by the Haltom City Police Chief for the "International Crime Free Association" of the year award.  The attached letter goes into the hard history and reputation of the property, and the dramatic changes that were made to completely turn the property around. This
Read More...

36% NSpire portfolio annual return; what are you getting?

36% NSpire portfolio annual return; what are you getting?
What return are you getting from your investments?  Though not simple to answer, it is important to understand, and may surprise you. Your "returns" may be a combination of items such as dividends/interest, distributions, refinance proceeds, principal paydown, tax advantages, and built in gains on the value of the underlying
Read More...

Road Trip: Post Acquisition Monterrey (June 8)

Road Trip: Post Acquisition Monterrey (June 8)
Please join us the morning of June 8th to see a multifamily property that we just acquired, before we've had a chance to rehab it!  We acquired Monterrey Apartments on May 10th, only a few weeks ago. This event is absolutely free and will be a small forum where you can ask
Read More...

NSpire Assets acquires 105-unit Monterrey Apartments

NSpire Assets acquires 105-unit Monterrey Apartments
NSpire Assets has announced the acquisition of The Monterrey Apartments in Fort Worth, TX. The Monterrey Apartments is a 112-unit garden style community, built in 1969, that is located at 7100 W Vickery Boulevard in Fort Worth, TX.  The property has an attractive brick/siding exterior. Residents enjoy amenities such as
Read More...

NSpire Assets acquires 112-unit Townhouse Apartments

NSpire Assets acquires 112-unit Townhouse Apartments
NSpire Assets has announced the acquisition of Townhouse Apartments in Ennis, TX. Townhouse Apartments is a 112-unit garden style community, built in 1985, that is located at 1001 Biloxi Drive in Ennis.  The property has an attractive brick/wood exterior with pitched roofs.  Residents enjoy a waterfall swimming pool along with
Read More...

NSpire 2012 Results

NSpire 2012 Results
We just held our annual investor meeting, and wanted to take an opportunity to share our results from 2012. As usual, we believe strongly in full transparency, and as such, you will see a complete breakdown of our investments on our web-page, with enough detail that you can reverse engineer
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Road Trip: August 4th

Road Trip: August 4th
Join us the morning of August 4th to see first-hand the ahead of schedule turn-around of our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions. We purchased the Woods of Haltom in March, and in only 4
Read More...

Case Study: July 11th

Case Study: July 11th
Join us the evening of July 11th to learn about multifamily investing and hear a case study on our last property acquisition (The Woods of Haltom).  It is absolutely free and will be a small forum where you can ask questions.       We purchased the Woods of Haltom in
Read More...

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