While it’s difficult to know for sure what will be included in a final draft of a proposed tax reform plan, let alone one that is passed by Congress and approved by the president, we do have some clues about what may be included in the plan.
A real estate investment sometimes succeeds or fails because of the margins. Sometimes the rate of interest charged on the loan to purchase a real estate property can make all the difference. It can be the difference between a profitable transaction and a losing deal.
Financing real estate investments is a key step toward achieving the maximum return on investment (ROI) on any project. Borrowing allows the investor to control a larger asset with a smaller amount of capital. Increases in the value of the total asset are larger when expressed as a percentage of the capital actually invested.
Real estate investing is about leverage. Getting the highest return on investment often means putting the least amount of capital into the project. This means that the real estate investor must be comfortable with borrowing money in order to finance a project.
Fixing and flipping residential real estate as an investment strategy can be a fraught proposition even for someone who has done their homework. Among the most unpleasant surprises is to learn that an investment property being renovated has been burglarized.
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.
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.
There are two basic approaches to a fix and flip strategy. The first, which was very popular at the start of this approach to real estate investing, is to purchase a property before the area in general experiences an increase in prices.
It is said that generals are always fighting the last war and never preparing for the next one. The same might be said of economists who are taking a dour view of the current robust activity in the real estate housing market nationwide. Rather than evaluating the fundamental causes driving this trend they can only see similarities to the pre-2008 bubble.