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...
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...
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...
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...
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...
