Recently, I've been hearing people toss out some strange phrases like: "I don't buy anything unless it's 12 cap or higher." or "5 cap is too low, there is no value." But, I passed over a 12 cap deal and I bought a 5 cap deal just this year. So, what capitalization rate is good? Understanding [...]
A lot of people buy an investment property, rent it out and then... that's it. They pay the mortgage every month and eventually pay it off. Sounds great, right?! Wrong... The interesting thing about investment property is that you usually don't want to pay off your loans. Recently, I decided to pursue a cash out refinance [...]
Is real estate a good investment? Some people say it's the best while others disagree. I clarify the answer.
For the last year, everyone has been watching the Fed and holding their breath while waiting to find out if interest rates would rise. For a while, it seemed every good piece of economic data would send the market down because people feared the Fed would start raising rates. Every bad economic indicator was taken with [...]
Investing in real estate can be a nightmare when things go wrong. For example, I was about to start looking for my next rental property when I got a call from a tenant. She told me that the door on the mechanical closet was warped to the point that the door was jammed shut. When [...]
The other night I was sitting on my bed with my wife and 3-year-old daughter Lily. We weren't doing anything unique, just chatting and playing before it was my daughter's bath time. I asked Lily if she would share her soft fleece blanket with me because my legs were cold. "NO! It's my blanket!" she said. [...]
After repair value is one of those terms you'll hear tossed around on a daily basis.
Without understanding ARV, you probably won't be successful for very long as a real estate investor.
So, embrace it, learn it, and love it.
If you've spent more than 4.7 seconds reading about real estate investing, you've heard the term "cash on cash return" tossed around like chicken nugget.
It's really important to understand the term because it's what drives real estate investing.
lmost every day I see an article that incorrectly argues that the stocks outperform real estate, but a huge margin.
The reality is, articles like this one are plain wrong. It is not just a little wrong, it is dangerously wrong. I would even go to the point of saying anyone who writes this stuff really is clueless or has never studied even the most basic aspects of real estate investing.
We know the Brexit vote has made the markets jittery. When investors are jittery, they are less likely to buy real estate too. We may see a period of declining real estate prices in London and other great European cities.