PV NPV
PV ( Present Value) Present Value PV: Assuming that $1,000 tomorrow will have more value to you than $1000 in 5 years we need to find a way to compute what the actual value of $1,000 in 5 years is...
Month: August 2020
Real Estate Indicator Benchmarks
Look at this real estate benchmarks before you buy a property...
ARV MAO 1% Rule?
Many beginners in real estate investment go to meeting or some sort of informal training. There always a couple of terms that come to surfice ARV ( After Repair Value ) ARV is the value of the selected property assuming it...
Value as a function of CAP rate
In residential Real Estate, the value of a property is not directly connected with the return on the investments. When you buy residential there are many factors you consider and the possible rental income is only one of those, probably a...
Financial Exclusion
Finance is an important topic to be interpreted in all its dimensions. It could be interpreted as personal finance or the subject of finance. Personal finances in terms of income and savings are important throughout your life for everyday living and...
Market Cycles in the US and the DC area
Real Estate Market Cycles in the DC and Maryland area. ...
Capital Asset Pricing Model ( CAPM ).
Ra = Rf + βa ( Rmkt – Rf) Expected return of an asset Ra = RiskFreeRate + βAsset * ( returnMkt- RiskFreeRate) where: Rf=risk-free rate βi=beta of the investment (ERm−Rf)=market risk premium I read that β of real estate is 0.5 and accordingly, real estate should...
Rent or Buy ?
In this article, I am referring to your own home, not to an investment home. Buy the house where you leave is a great investment almost all of the time…. tax-free…. I mean if you buy houses to rent out you...