Investors come to us for customized solutions to assist them to better objectively analyze, select and track the performance of their real estate investments as they seek to generate the wealth necessary to secure their family's well-being. Private placements involving multi-family properties structured as private investment partnerships represents one of the most common asset classes our client base uses to build wealth. PPMmath.com offers analytical tools that allow you to assess the relative merits (on a pro-forma basis) of each private placement's benefits: tax, cashflow, and appreciation/gains, in advance of making a decision to invest, Now that you are an investor, Partnermath.com will provide tools that track the progress of each real estate investment to determine their ongoing performance.
Unfortunately, one of the biggest problems facing real estate partnership investors today is knowing how well their investment is performing. The reason: Historic cost financial statements for real estate companies are based on depreciating property and are misleading. Depreciation reduces book value, or stated net worth, and artificially reduces taxable earnings. But, with good management (and at times some help from market dynamics), property will appreciate. For real estate companies, this hoped-for result is not portrayed in financial statements prepared in accordance with generally accepted accounting principles ("GAAP").
Holders of illiquid, long-term partnership investments would like to have their "faith" bolstered with some tangible evidence of prosperity. Unlike stocks, partnership values you cannot find such values in the daily newspaper. Instead, investors rely on the financial reports and communications provided by the sponsor. Most sponsors of publicly registered real estate limited partnerships fulfill only the minimum financial reporting requirements of the Securities and Exchange Commission for informing investors about financial results. (Private placement reporting is often even more sparse.) Usually, details include the business of the partnership, summary financial data and a management discussion and analysis of financial condition and operations.
The information provided may be a good start but very often falls far short of giving investors what they need to tell where they stand. Reporting formats vary sponsor and may or may not include relevant market value disclosures. Further, sponsors often do not include comparisons of operations with prior periods which would allow you to identify trends in rents, net operating income, cash flow and expenses so you could quickly identify superior or inferior performance.
PARTNERmath.com shows you the MATH that can be used to convert even the sparsely reported financial information of a private partnership into a rough measure of the value of the property(s) it holds.
Email: info@npross.com
Phone & SMS (713) 589-8727
Located 1 mi. west of Beltway 8 on the ground floor of a building that many Houston real estate investors will find familiar, this office will serve as our new headquarters where we will be undertaking networking events, seminars and the ongoing development of a new series of investor "MATH" educational resources including this website and collateral materials, e.g. education and e-Books:
401Math.com is next up in the MATH series and it will be online very soon. We will include illustrations showing the relative outputs of the ONLY 4 options for how 401(k) or IRA funds may be re-structured to invest in real estate. Forget the emotional, "one-size-fits all", "we will retire you in 5 years or less" hype that, unfortunately, rarely applies to Passive Investors. We will show you the MATH that reflects why it's likely you won't come close to doing so IF you give away up to 50% of your net worth to the Federal & State taxes and/or premature distribution penalty that will be due before you ever get started. There is a better way, we will show you how. You will come to understand the unemotional "MATH" that answers the "when" part of the retirement question for your specific level of resources.