If you have a goal of learning how to invest in real estate, I suggest you start by reading books (as well as networking with established investors). You will usually get a lot more value per dollar with a book Read more…
Month: May 2020
If you’re looking to invest your hard-earned money, you might be debating between investing in stocks vs. real estate. What’s the right option for you? Should you put your hard-earned money into the stock market, or should you buy real Read more…
In order to find positive cash flow real estate, it is helpful to know how to calculate cap rate. Here is a cap rate calculation using actual numbers. Such numbers can be obtained from a seller is you ask for Read more…
In another post, I discussed cap rates of duplexes and properties for which income and expense information is readily available. With a multifamily property, you can demand rental history information or a schedule E from the seller. This is not Read more…
You have probably seen the promotions: guaranteed 9% rate of return for first 3 years. It sounds very tempting as it is a turnkey investment with a high cap rate. You, as an investor, do not need to worry about Read more…
One of the first things you should learn as an investor is how to calculate “cap rate” (capitalization rate). This is the rate of return from rent for the first year of ownership, if you paid all cash, assuming zero Read more…
Late night TV gurus sell you on the fabulous lifestyle that can be yours if you invest in real estate. They tell you that you can do it with no cash and no credit. The typical formula is to buy Read more…
It is important to realize that most courses that are promoted on late night infomercials are designed to generate a profit through sales of courses and materials. The gurus in question may or may not have really been successful. Review Read more…
Most “new” timeshares are overpriced. That is why such they use such hard sell tactics to try to sell them. A building can be sold three times over by selling it as timeshares. “Used” timeshares, that is, timeshares that are Read more…
Choosing a part of town in which to buy can be a difficult decision. One may gravitate to the most expensive part of town but that isn’t always the best place for cash flow. I personally like middle-income areas. At Read more…
With new construction, usually the only person to make money is the builder. Even the second owner often loses money. The problem with new construction is that you are paying based on current wages and current prices of materials. Inflation Read more…
This is a very important topic. A bad property manager can destroy your investment. If you get stuck with a bad manager, you probably have a one year contract you need to find a way to break. Some managers have Read more…
Before doing too much shopping for real estate, you really need to make sure you are eligible for financing, unless you are planning to pay in cash. Sellers will generally not consider your offer unless a preapproval letter is attached. Read more…