Author: Terence Critchlow

Recent Newsletter Articles

#59 Book Review: Finish: Give Yourself the Gift of Done

Jan 18, 2025

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Terence Critchlow

Most of us have a pile of half-finished projects and abandoned goals. With this being the season where most new resolutions are added to that pile, I wanted to share a book that helps you stay on track and accomplish your goals. In his groundbreaking book “Finish: Give Yourself the Gift of Done,” Jon Acuff…
#58 Two Unfortunate Trends in Sponsor Communication

Jan 4, 2025

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Terence Critchlow

As passive real estate investors, we often focus on the numbers – IRR, equity multiples, and cash-on-cash returns. But I’ve discovered that a sponsor’s communication patterns can tell you more about their operational excellence and investment philosophy than any pro forma. Recently, I’ve observed two concerning trends in sponsor communications that every Limited Partner should…
#57 Note Investing 101

Dec 14, 2024

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Terence Critchlow

One of my favorite asset classes for cash flow is notes – also known as mortgages, hard money loans, or private money loans. Think of it as becoming the bank – without the bureaucracy. There are two common ways to invest in notes. The first is to invest directly in a specific note against a…
Breaking the “Never Sell” Myth

Nov 30, 2024

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Terence Critchlow

You’ve heard the conventional wisdom – “never sell your real estate investment” – but is that always the right move? Spoiler alert: It’s not. Absolutes are rarely your friend. As with any professional activity, real estate investing requires continuous optimization, strategic thinking, and a willingness to evolve your strategy. As an investor, you need to…
Side-Gigs: Passion Project, Profit Generator, or Both

Nov 16, 2024

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Terence Critchlow

For many successful tech professionals, the idea of starting a side gig can be both appealing and confusing. While your day job provides a comfortable income, you might find yourself drawn to additional ventures – whether for passion, profit, or both. However, before diving in, it’s crucial to understand what truly drives this desire. From…
Consistent strategy, evolving tactics

Nov 2, 2024

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Terence Critchlow

There is a fundamental difference between your overall strategy – the long term vision of what you want to do – and the tactics that you use to make progress on that strategy. My strategic vision has been to I use my personal investment philosophy [1] as the framework within which I take action. The…
Book Review: The Lifestyle Investor

Oct 19, 2024

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Terence Critchlow

I recently re-read The Lifestyle Investor by Justin Donald [1]. While a new version of the book came out n April, I read my copy of the original.
How compounding supercharges your net worth

Oct 5, 2024

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Terence Critchlow

“Compound interest is the eighth wonder of the world. He who understands it, earns it. He who doesn’t, pays it,” is a quote attributed to Albert Einstein. Whether he actually said it or not is unclear [1].
Your retirement number changes based on your investment strategy

Sep 21, 2024

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Terence Critchlow

Imagine reaching the point in life where your investments generate enough income to cover your expenses, freeing you from the constraints of a traditional job.
The benefit of separating accounts for financial goals

Sep 7, 2024

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Terence Critchlow

I was talking to a friend of mine about investing in cash flowing real estate a couple of weeks ago, and the conversation really made me think about things that I take for granted.
The Invest 4 an Abundant Life Book Club: Building a community around books

Aug 24, 2024

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Terence Critchlow

If you’re a seasoned investor, you know the power of continuous learning. Books offer an invaluable resource to expand your knowledge, gain new perspectives, and stay ahead of market trends.
Book Review: Legal Strategies for Everyone

Aug 10, 2024

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Terence Critchlow

As a high net worth individual, which accredited investors are by definition, the unfortunate reality is that you become a target for lawsuits. Whether or not the lawsuit is justified is totally irrelevant, they occur and expensive judgments can be awarded. Most people don’t think about that until it is too late to do anything…
Customer service lessons from the latest travel meltdown

Jul 27, 2024

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Terence Critchlow

Starting 7/19/24 and continuing through at least 7/25/24, there has been a major disruption in the airline industry as the result of a software update gone bad [1]. There are many lessons that will be (re-)learnt from this on the software engineering side, with some airlines recovering quickly and others struggling to get back to…
An example due diligence investigation on a facility (part 3/3)

Jul 13, 2024

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Terence Critchlow

This week, I want to give you more insight into how we evaluate a facility to determine whether or not to put in an offer. This is based on a real opportunity that we looked into and ultimately decided was not a fit for us.
Our Pre-offer Due Diligence Process (part 2/3)

Jun 29, 2024

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Terence Critchlow

Have you ever wondered what we look at before we make an offer on a potential property? Before diving in, it’s crucial to uncover a facility’s true potential but that can be a daunting process. In our previous article [1], we gave a high level overview of what we look at. This week, we’re cracking…
How do we evaluate a property to decide if it is a “deal”? (part 1/3)

Jun 1, 2024

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Terence Critchlow

In 2023, we looked at over 70 properties and made an offer on only 1 of them – and for that one, we weren’t able to come to terms with the seller. The overwhelming majority didn’t meet our investing criteria.
Book Review: Buy Back Your Time

May 18, 2024

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Terence Critchlow

One of the main reasons to break your dependency on your paycheck is to stop trading your time for money and instead focus on the things that are most important to you and bring the most value to you, your family, and, more broadly, the world in general.
How to use arbitrage effectively

May 4, 2024

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Terence Critchlow

Most people are aware of the concept of financial arbitrage – borrowing money at one rate and then using it to generate income at a higher rate, pocketing the difference between the two rates as profit – as this is what banks do. Banks borrow money (your deposits) at a low interest rate then lend…
8 tax advantages of real estate

Apr 20, 2024

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Terence Critchlow

If you talk with real estate investors, you will often hear about the tax advantages of real estate investing. People will often talk about them as a silver bullet that makes real estate investing more lucrative than other investments. But it isn’t always clear what tax advantages they are talking about. And, in some cases,…
Will $1Trillion in interest payments force lower rates?

Apr 6, 2024

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Terence Critchlow

In Q4 2023, the interest on the federal debt surpassed 1 Trillion dollars [1] for the first time. That’s almost double the amount we paid in Q4 2019 ($565B), and is truly an unfathomable amount of money to be paying simply to cover the cost of maintaining our deficit (not to pay it down).
Do your homework so you can take advantage of a deal when it appears

Mar 16, 2024

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Terence Critchlow

While getting wealthy in real estate is a long-term game, there are times when you need to be able to move fast. Sometimes really fast.
Hands off investor book review

Mar 2, 2024

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Terence Critchlow

I am often asked if I can recommend a book for a Limited Partner to gain a better understanding of syndications, including how to better understand a deal. I am happy report that I finally found a book that I can whole-heartedly endorse as a great introduction to syndications for LPs: The Hands-Off Investor, by…
Deep dive on our values: Reliability

Feb 17, 2024

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Terence Critchlow

MBC Real Estate Investing is built on 4 core values: abundance, freedom, community, and reliability [1]. I want to go a little deeper into what these values mean to us, so that you have a better idea of whether or not our views align with yours. I believe that understand someone’s values is important to…
Deep dive on our values: Community

Feb 3, 2024

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Terence Critchlow

MBC Real Estate Investing is built on 4 core values: abundance, freedom, community, and reliability [1]. I want to go a little deeper into what these values mean to us, so that you have a better idea of whether or not our views align with yours. I believe that understand someone’s values is important to…
Deep dive on our values: Freedom

Jan 20, 2024

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Terence Critchlow

MBC Real Estate Investing is built on 4 core values: abundance, freedom, community, and reliability [1]. I want to go a little deeper into what these values mean to us, so that you have a better idea of whether or not our views align with yours. I believe that understand someone’s values is important to…
Deep dive on our values: Abundance

Jan 6, 2024

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Terence Critchlow

MBC Real Estate Investing is built on 4 core values: abundance, freedom, community, and reliability [1]. I want to go a little deeper into what these values mean to us, so that you have a better idea of whether or not our views align with yours. I believe that understand someone’s values is important to…
How do you know who to take advice from?

Dec 16, 2023

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Terence Critchlow

A question I got recently from another syndicator is “Who do you go to for unbiased retirement investing advice?”
Key differences between REITs and syndications

Dec 2, 2023

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Terence Critchlow

At a high level, syndications comprising multiple properties look an awful lot like REITs (Real Estate Investment Trusts) so a reasonable question is why would you invest in a syndication, where your money is locked up for years, when you could invest in real estate through a REIT instead.
Book Review – 10x is easier than 2x

Nov 18, 2023

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Terence Critchlow

Grant Cardone made thinking 10x bigger popular with his book “The 10x Rule” [1] back in 2011. However, he focused on the mindset that you need to reach these seemingly impossible goals. Building on this idea, and providing some additional insight into how to actually make this work, Dan Sullivan and Benjamin Hardy published “10x…
What we look for in our investors

Oct 21, 2023

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Terence Critchlow

You already know that not all investments are right for all investors. That also means that not all investors are right for a specific investment.
Tax Adjusted Returns – understanding how taxes impact returns

Sep 23, 2023

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Terence Critchlow

When comparing investment opportunities, it is very tempting to just look at one of the common metrics, in particular IRR, and pick the investment with the best projected return.
Risk adjusted returns – not all investments behave the same

Sep 9, 2023

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Terence Critchlow

When comparing investment opportunities, it is very tempting to just look at one of the common metrics, in particular IRR, and pick the investment with the best projected return.
Book Review – Getting Things Done: The Art of Stress-Free Productivity

Aug 26, 2023

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Terence Critchlow

I am an avid reader of non-fiction. I believe in continuous education and find that books provide an incredible wealth of information. Reading a good book provides both inspiration and insight, opening the mind to new possibilities.
Why I like the Texas markets

Aug 12, 2023

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Terence Critchlow

Once you know what your overall investment strategy is [1] and have decided on an asset class [2], the next major decision point you need to make as a real estate investor is what market to invest in. Unlike a stock, which is identically priced anywhere in the country, the price of real estate varies…
Why I like self storage facilities as an asset class

Jul 29, 2023

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Terence Critchlow

Once you start looking at syndication deals, you will find that there are a huge number of opportunities to invest in a wide variety of real estate – as well as other types of syndications as well (did you know that many movies and broadway shows are syndications?).
Are your investment goals and strategy aligned?

Jul 15, 2023

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Terence Critchlow
Don’t be afraid to ask the hard questions

Jul 1, 2023

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Terence Critchlow

I almost got involved in a ponzi scheme. The only reason I didn’t end up losing a lot of money was sheer luck.
Your lawyer and CPA – don’t invest without them

Jun 17, 2023

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Terence Critchlow

If you hang around real estate investors for a while, you will always hear the disclaimer that “I am not a lawyer, CPA, or financial advisor”. You will even see it on each of my blog posts J.
Why do syndicators share their deals instead of keeping them all for themselves?

Jun 3, 2023

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Terence Critchlow

A common question from people exploring syndication for the first time is, “if this deal is so good, why doesn’t the sponsor keep it to themselves?” It is a very natural question, but misses the point of why someone is syndicating in the first place.
What is a cost segregation and why should I care if I am not a real estate professional?

May 27, 2023

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Terence Critchlow

If you hang around commercial real estate investors for any length of time, you will hear the term “cost segregation” come up.
Yes, you can lose money in real estate, don’t let anyone tell you otherwise.

May 21, 2023

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Terence Critchlow

Interest rates are up. Inflation is high – which means the cost of everything is increasing rapidly. Banks are failing. Rents are no longer increasing at 10+% per year, And it is getting tougher to qualify for a loan.
Appreciation vs cash flow investing philosophies

May 13, 2023

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Terence Critchlow

There are at least two major investment philosophies. The first is to invest for appreciation the other is to invest for cash flow.
How I think about, and manage, risk in real estate investing

May 8, 2023

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Terence Critchlow

If you have been paying attention to the economy lately, you know there is a lot going on.
What do you mean, “my home is not an asset”?

Apr 22, 2023

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Terence Critchlow

If you have ever read the classic Rich Dad, Poor Dad [1] you have seen Robert Kiyosaki assert that your home is not an asset but rather a liability (note: if you haven’t read this book, you should, it is a classic and helps establish the mindset required to become financially independent). This is one…
Understanding common metrics defining returns: CoC, MOIC, and IRR

Apr 15, 2023

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Terence Critchlow

When evaluating different investments that would fall into the same bucket within your portfolio, it can be challenging to understand how they compare since they may have very different characteristic such as cash flow and time to completion (to know what your buckets are, you need to understand your personal investment philosophy). To help compare…
What is a “preferred return” and how does it relate to a “waterfall”?

Apr 8, 2023

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Terence Critchlow

When you start looking at syndications, you will hear a lot about “preferred returns” (also known as “prefs”), and “waterfalls”. These terms are thrown around a lot but not usually defined. So what do people mean when they are talking about them?
What does “active investing” in real estate mean?

Apr 1, 2023

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Terence Critchlow

When people think about real estate investing, what they typically think about is active investing. In active investing you do the work to make the investment succeed. And if you don’t do the work, your investment will likely not be successful. This is what a sponsor does, but you don’t have to be leading a…
Thoughts on the latest bank failures

Mar 18, 2023

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Terence Critchlow

It has been a really interesting week on the financial front, so I wanted to take a break from my normal focus on syndications and talk about what has happened so far, what seems to be happening in the short term, and some possible long term implications. While this isn’t specifically focused on real estate…
Definition: What is an accredited investor?

Mar 11, 2023

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Terence Critchlow

An accredited investor is the term used by the SEC to refer to investors who are “financially sophisticated”. Accredited investors are able to invest in a wide variety of opportunities that normal investors are not – some of which (such as capital raises for tech startups) are much riskier than the investment options that are…
When should you use an IRA or other retirement accounts to invest in syndications

Mar 4, 2023

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Terence Critchlow

Standard disclaimer: I am not an accountant or financial advisor, and am not providing tax or financial advice, this article reflects my understanding of the rules as they currently exist and is not a recommendation on what you should do. I always recommend talking to your tax and financial advisors before making any financial decisions.
My (Current) Investment Philosophy

Feb 25, 2023

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Terence Critchlow

There are a lot of different ways to invest in real estate. The right way for you may not be the right way for me, and that’s ok. Success in REI does not look the same for everyone. It is important, however, that you understand why you are investing in a certain asset class, deal,…
My advice for new investors

Feb 18, 2023

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Terence Critchlow

One of the questions I usually get when talking to someone who is looking at real estate investing for the first time is, “Where do I start?” Sometimes the question comes out as directly as that, sometimes the conversation dances around the topic for a while.
What I look for in a potential sponsor

Feb 11, 2023

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Terence Critchlow

I would argue the single most important decision you make about investing in syndications is not which deal to invest in, but which sponsors do you invest with. Obviously the deal itself is important – the numbers need to make sense and it needs to fit within your overall investment philosophy – however many investors…
Where to put your investing dollars: REI vs the stock market – the numbers (2/2)

Feb 4, 2023

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Terence Critchlow

After reading the previous article, I am guessing you are a little skeptical. I can imagine you thinking “That sounds nice, but do things really work out that way?” I totally understand.
Where to put your investing dollars: REI vs the stock market – High level (1/2)

Jan 28, 2023

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Terence Critchlow

These days, an investor looking for a fully passive return has a lot of options. One of the most common approaches is to put money into an index fund and let it grow. Then, when you need a stream of income, you can start drawing down the funds with the 4% rule giving you guidelines…
Why I started this blog – and MBC

Jan 21, 2023

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Terence Critchlow

Before we go too far into the details of syndications and specific deals, I want to give you more of an idea as to why I am investing in real estate, creating MBC, and writing this blog. I think understanding who I am and why I am here will help you put my advice in…
What documents should you expect to see as part of a syndication? (An Introduction to Syndications Article 3/3)

Jan 14, 2023

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Terence Critchlow

Because the LP is a completely silent partner and has no influence over the investment, the SEC considers syndications to be securities [1] as the profit expected to be made (by the LP) is due exclusively from the actions of a third party (the GP). This makes it a very different situation than when you…
Who should consider investing in a syndication (An Introduction to Syndications Article 2/3)

Jan 7, 2023

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Terence Critchlow

I believe syndications are an amazing investment opportunity for a large number of people – including many people who don’t even know they exist. But there are some drawbacks that you need to be aware of as well and so they aren’t the right option for everyone. As with any investment you make, it is…
An Introduction to Syndications (Article 1/3)

Jan 2, 2023

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Terence Critchlow