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...
Author: Paolo
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...
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...
Investing in 10 steps
INVESTING IN 10 STEPS STEP 1) The investor hires a Realtor at KWCP STEP 2) Together, you come up with an investment strategy STEP 3) The investor provides proof of funds, or you make sure he contacts a mortgage advisor...
Investing in DC / Maryland / VA
Location, location, location: how to choose an investment area. why invest in the DC, Maryland area ? The Maryland / DC / Virginia area is excellent for investment property: DC is the political, diplomatic and military center of the USA. This...
Choosing the right residential property type
Single Family vs Townhouse vs Apartment Usually buying a single family home does not bring as much return as buying many smaller properties. Townhomes, condo may bring in more monthly income for the same capital investment, but will increase the work...
Dividend Stocks Vs. Rental Properties
Dividend Stocks Vs. Rental Properties Returns Since Real Estate is just one of the 11 capital markets sectors ( See https://en.wikipedia.org/wiki/Global_Industry_Classification_Standard#Classification ) lets compare RE investing to stocks investing since this is a frequently asked question. While there is no standard...
Leverage in Real Estate
More on LEVERAGE All loans have three compnents: Principal : Amount you borrowed Interest: Amount you pay in interest Term: Length of the loan In a fully amortized loan ( like a normal loan you get when you buy a home...