When you’re considering any act with respect to your real estate investments, it’s important to carefully evaluate every aspect of the decision or transaction. Due diligence is a common term borrowed from the legal profession. It describes the process involved in fully researching any issue or decision.
Recently, more television shows surrounding the fix and flip niche have become extremely popular. In reality, you can make money fix and flipping homes. These shows highlight the “good”, such as an amazing renovation and big profits.
Cash flow is important for any type of business, but real estate crowdfunding is a different kind of business that requires a carefully thought out plan for the end game. It’s more like investing than a traditional business, but it still requires an attentive eye to business technicals like cash flow, forecasting, and profit-loss analysis.
While this old saw is not entirely true, it’s not completely wrong either. After all, business is done between people who work for companies, not between companies by themselves. Inter-personal relationships are and always will be an important aspect of any business, especially real estate.
Remodeling a home is a great way to add value to a property, but unfortunately it is also a great way to dig a financial black hole. In order to avoid the pitfalls of pending money that will never be recovered, keep a simple rule in mind. Focus on renovations that someone else will value.
Buying a piece of investment real estate for the first time does not need to be a fraught situation. Understanding the basics of real estate and the terminology of real estate investing can make any beginner more comfortable and confident.
Investopedia defines FinTech as a “portmanteau of financial technology that describes an emerging financial services sector in the 21st century.” In other words, FinTech is the use of technology to support electronic banking and financial services.
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.
Real estate deals come in a variety of packages from “ground up” investments to value-added or rehabilitation projects. Each type of investment has its own associated risks and rewards. A ground-up real estate investment typically involves more risk, but they may also provide better rewards.
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.