Usually, yield is only based on rental income, whereas a total rate return includes capital gains. If you are trying to make a decision to buy or not a property both measurements are important Yield is similar to CAP RATE cap...
Taxes and deductions for the real estate owner: It's a good idea to consider the tax consequences of buying or investing in real estate. Here's a primer on real estate taxes to get you started....
Investors do what is traditionally called BOE ( Back of the Envelope analysis). The GOAL of BOE is to quickly dismiss projects that do not make sense for our investment strategy. An example of a quick decision is: Property A price...
Commercial Real Estate Investing Advantages: Most commercial properties are rented with a NNN triple net lease and the tenant is responsible for all expenses. Commercial has also the great advantage that requires much less maintenance from the owner, most commercial retail...
Hard Money Loans: When you hear the words “hard money loans” (or “private money loans”), what’s the main thing that experiences your brain? If you think about “loan sharks” who deal with vague terms , those are mostly illegal. Some bad...
Why invest in real estate Investing is one of the most important things to become financially independent or build assets. You can invest in multiple financial instruments, but today we are focusing on real estate, and we will help you decide...
Invest Early Everyone has a common dream, to earn sufficient money to fund your lifestyle. You can earn money by working for it, but have you ever thought about putting the money you earned to work for you and, in return,...
Absorption Rate in Residential RE Housing Inventory and month supply. Realtors can easily access the MLS and find the absorbtion rate. The absorption rate is calculated by dividing the number of homes that sold over the given period of time ( usually a...
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...
