There are different appraisal methodologies for different types of real estate. Investment real estate is often valued under the Income Approach. This is a formulaic appraisal method that divides the anticipated income from the property by the capitalization rate.
According to MarketWatch, real estate is the fastest growing segment in crowdfunding. In fact, it is expected that real estate crowdfunding (RECF) will create $500 billion or more in funding and generate $3.2 trillion in value each year by 2020.
Savvy real estate investors know to watch mortgage rates the way a sailor knows to watch the sky. Changes in mortgage rates impact the market prices of homes in the same way changes in interest rates impact the market values of bonds.
As a real estate investor, imagine showing the Addams Family home to potential buyers. The snarling gate, the encroaching, thorny vines, the crumbling, rambling exterior skirted by the dead trees and lawn. Folks would run for their lives instead of placing offers.
Real estate investing is generally considered a very stable income vehicle. But this actually hinges on the investor’s position within the capital stack. In this article, we’ll explain the capital stack and why all investors must learn its importance.
When real estate values are climbing and the economy is doing well, everyone wants a good investment. The truth is, not every real estate investment is good. You have to learn to tell the good ones from the bad ones.
It’s easier today than in all of history to reach more people. One of the best ways to market a newly renovated property is by spreading the property’s message. Savvy investors utilize all sorts of means to broadcast a newly renovated property.
The fix and flip phenomena might have most investors seeing dollar signs but consider the following tips before committing to any property. What should buyers look for in a fix and flip property? Lots of things.
Knowing and using after repair value (ARV) can make or break the budget. Lenders rely on it, banks study it, and investors obsess over it — for good reason. The ARV ultimately determines an investor’s profit.
When it comes to investing, real estate investing has several advantages. However, there are some drawbacks to traditional real estate investing. For instance, if you have your cash tied up in properties, then it’s illiquid.