Investor Learning Center
Enhance your investment knowledge with educational resources, key terminology, and insights into manufactured housing and self-storage real estate investing.
INVESTING TERMS
Understanding key investment terminology is essential for making informed decisions. Here are some important terms you should know.
Accredited Investor
An individual or entity that meets specific financial criteria set by the SEC, allowing them to invest in private securities offerings.
Cap Rate (Capitalization Rate)
A metric used to estimate the potential return on an investment property, calculated by dividing net operating income by the property's current market value.
Cash-on-Cash Return
A rate of return that calculates the cash income earned on the cash invested in a property, measuring the annual pre-tax cash flow relative to the total cash invested.
Delaware Statutory Trust (DST)
A legal entity that allows investors to own fractional interests in institutional-quality real estate, commonly used for 1031 exchanges.
1031 Exchange
A tax-deferral strategy under IRC Section 1031 that allows investors to defer capital gains taxes by exchanging one investment property for another "like-kind" property. The exchange must be completed within specific timeframes (45 days to identify replacement property, 180 days to close).
721 Exchange
A tax-deferral strategy under IRC Section 721 that allows investors to contribute property into a partnership or REIT in exchange for ownership interests, deferring capital gains taxes. Often used as an alternative or follow-up to a 1031 exchange, offering greater flexibility and potential for diversification.
Internal Rate of Return (IRR)
A metric used to estimate the profitability of potential investments, representing the discount rate that makes the net present value of all cash flows equal to zero.
Net Operating Income (NOI)
The total revenue from a property minus all operating expenses, excluding debt service, income taxes, and capital expenditures.
Preferred Return
A threshold return that limited partners must receive before general partners can receive their share of profits, typically expressed as an annual percentage.
Private Placement Memorandum (PPM)
A legal document provided to prospective investors that outlines the terms, risks, and details of a private investment opportunity.
EDUCATIONAL RESOURCES
Explore our curated collection of articles and guides designed to help you understand real estate investment opportunities.
Introduction to Manufactured Housing Investments
Learn about the fundamentals of investing in manufactured housing communities and why they represent a stable investment opportunity.
Understanding Self-Storage Real Estate
Explore the self-storage asset class, its resilience during economic downturns, and the factors that drive performance.
1031 Exchange Strategy Guide
A comprehensive guide to deferring capital gains taxes through 1031 exchanges and how they can benefit your investment strategy.
Evaluating Real Estate Investment Opportunities
Key metrics and criteria to consider when evaluating potential real estate investments, including cap rates, cash flow, and market analysis.
Risk Management in Real Estate
Understanding the various risks in real estate investing and strategies to mitigate them through diversification and due diligence.
Passive vs. Active Real Estate Investing
Compare the benefits and considerations of passive syndication investing versus direct property ownership and management.
Ready to Start Investing?
Now that you're equipped with knowledge, let's explore how Elevation Capital Group can help you seek to achieve your investment goals.