Event Calendar
Tag Archives: real estate
Low Interest Rates
Low interest rates are very enticing. I want to suggest caution, because an increase in interest rates will dramatically affect the value of real property. Real estate is a “borrowed money” business. The cost and structure of financing determines the income valuation of the property. Similar to bonds, the value varies inversely to the yield [...]
Yet Another Housing Bubble?
I just posted an article on the 2013 apparent housing bubble.
April 2013, the more things change, the more they stay the same. It seems like Deja Vu all over again.
There are very few listed houses, multiple offers, bidding wars, double digit price inflation, and listed houses are on the market for a very short time. [...]
Non-Credentialed Interlopers
The problem of “non-credentialed interlopers” is growing. I am talking about folks who advertise properties for sale, especially apartment buildings, and when I request the operating data, rent rolls, debt structure, etc., they send what they call “confidentiality agreement” (CA). Then I read the CA to learn that it is actually a “non-circumvention agreement” (NCA) [...]
Posted in Real Estate Investing
Tagged accountant, attorney, broker, circumvention, confidentiality, contract, credentials, joint venture, property, real estate, representation, representative
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Investing in Rental Properties
I just watched yet another “Personal Finance Guru” on cable TV who recommends NOT to invest in rental income properties, but instead to invest in municipal bonds, claiming that such debt instruments are paying 5% to 6% tax free and are much safer than rental properties. To use the guru’s favorite retort, “Are you kidding [...]
Posted in Real Estate Investing, Wealth Creation
Tagged active, bond, cap rate, capitalization rate, cash flow, debt, down payment, equity, expense, income, interest, investment, landlord, lease, loan, management, mortgage, passive, principal, property, real estate, rent, rental, syndication, tenant, yield
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New Wealth Creation Information Product
I just released my latest wealth creation information product. It is called (drum roll, please):
“How to Pyramid Your Equity to Create Wealth and Financial Freedom”
It’s a thick, jam-packed (over 100 pages) special report PDF with forms and spreadsheets. It explains several ways of creating or leveraging equity so that you can, with very diligent effort, retire [...]
Posted in How to Pyramid Your Equity to Create Wealth and Financial Freedom, Real Estate Investing, Wealth Creation
Tagged active income, assign, assignment, business, buy, buyer, capital gain, cash, cash flow, contract, credit, deal, debt, distressed, finance, fix and flip, fix and rent, fix and sell, flipping, hard money, home, house, income property, invest, investing, investment, IRA, lender, leverage, maximum allowable offer, money, mortgage, motivated, offer, passive income, price, private lender, professional, purchase, pyramid, real estate, sale, self directed, sell, seller, software tutorial, spreadsheet, wealth creation, wholesale, world class, yield
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Product Update: Property Analysis Worksheet Short Form
I just updated my Property Analysis Worksheet Short Form product. I added more detail lines to the RepairEstimates worksheet. If you purchased this product within the last 12 months, then you will receive an email with your free download link for the update.
If you want to learn more about analyzing properties for quick-turning (fix-and-sell or [...]
Posted in Property Analysis Worksheet Short Form, Real Estate Investing, Time Value of Money, Wealth Creation
Tagged analysis, broker, credit, debt, equity, expense, financier, fix and flip, fix and rent, fix and sell, frbo, fsbo, handyman, hard money, home, house, income, invest, IRA, lease, leverage, mls, partner, private finance, property, real estate, realtor, rehab, renovate, renovation, rent, repair, spreadsheet, tlc, wholesale
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Product Update: Sample Analysis1 video tutorial
I added a new “Sample Analysis1″ video tutorial to the Property Analysis Worksheet Short Form product. You can watch the YouTube version here.
I get so many emails from amateur wholesalers who don’t know what they’re doing. They are not operating their business like a professional. I run the numbers and politely suggest that they renegotiate [...]
Posted in Real Estate Investing
Tagged active income, amateur, analysis, appraisal, assign, assignment, cash flow, contract, contractor, debt, double close, email, equity, excel, leverage, mail merge, negotiate, passive income, professional, property, real estate, rehab, renegotiate, renovate, renovation, scope of work, spreadsheet, templates, tutorial, video, wholesale, word
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The Cost of Delaying Benefits
Why is common sense so rare?
I just heard yet another “economics expert” on cable television (a business finance talk show) talking about delaying Social Security benefits to increase the beneficiary’s income. Here are the basic terms:
At retirement age of 62, the basic monthly benefit is X. I’ll throw in a number of $500, but it [...]
Posted in Real Estate Investing, Time Value of Money, Wealth Creation
Tagged 401k, analysis, analyze, beneficiary, benefit, cash flow, clark howard, compound, cost of living, credit, dave ramsey, debt, defined benefit, defined contribution, discount, equity, expense, finance, financial, gerri willis, guru, income, interest, IRA, lease, leverage, pension, ponzi, property, real estate, rent, rental, retirement, senior, social security, suze orman, wealth, yield
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Risk Spread Premium
Risk Spread Premium
I just read a short article from a real estate guru. He was talking about the “Risk Spread Premium” on real estate Capitalization (CAP) Rates compared to the 10-year US Treasury bond.
His basic assertion is to compare the difference (spread) between the average CAP rate of income properties to the yield on the [...]
Posted in Real Estate Investing, Time Value of Money, Wealth Creation
Tagged bond, cap, capitalization, cash, debt, equity, expense, flow, income, interest, premium, real estate, risk, spread
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