Real estate can be a great investment opportunity. Real property and real estate tend to build value and real wealth over time, which produces a return ON and OF your initial investment in multiple ways. We will take a simple look at the power of 1) leverage, 2) appreciation via inflation, 3) consideration of realContinue reading “The 9 Benefits of Investing in Real Estate: 1. Leverage”
Category Archives: Cashflow
3 Ways to $96K a year.
While I am still in the process of writing my book, let me share some concepts from one of the chapters about 3 ways to make $96,000 a year of tax advantaged “passive” income (which would be the equivalent of making $192,000 at a W-2 job and giving 50% away to state, local and federalContinue reading “3 Ways to $96K a year.”
Don’t choose the wrong syndicator! Avoid these red flags!
Operator level: Deal level: (I am personally in a deal where the operator did a bridge loan of 2 years with 3 additional extensions. Because the rates moved so quickly, they have caught this 30+ year operator by surprise. Fortunately, this 30+ year operator did purchase a rate cap; however, the speed of rate increasesContinue reading “Don’t choose the wrong syndicator! Avoid these red flags!”
Should I convert my primary residence to a rental?
There is a lot to consider when determining whether you should rent out your primary residence. I have been getting this question more frequently of late, so let’s look at some things I discuss with my clients. First on the list is to determine the market rental rate for your property. Use Realtor.com, Zillow, contactContinue reading “Should I convert my primary residence to a rental?”
Breaking the 5 for 2 for life thinking
What is the rat race, the matrix, the trap, the deception? Simply exchanging 5 for 2 for life. Work for 5 days to get 2 days if you’re lucky. We are trained from school age to exchange 5 days for 2 days. T.G.I.F. But, how does this happen? Most people are enticed into school debtContinue reading “Breaking the 5 for 2 for life thinking”
Is real estate really passive investing?
In short, “No.” Similar to driving, you have to steer, accelerate, brake when necessary and so on, but do you really need to lay the asphalt or paint the lane markers? Both are involved and interacting with the road, but from very different roles. Ultimately you have to decide how much work you are goingContinue reading “Is real estate really passive investing?”
How inflation affects real interest rates and investment returns
Let’s discuss an interest rate of 3.4% and an inflation rate of 6.8% (according to BLS.gov/cpi for December of 2021) and look at the outcome. Inflation eats away at the future purchasing power of a dollar. In other words, it buys less because it has been devalued. The same $1M today, will not buy $1MContinue reading “How inflation affects real interest rates and investment returns”
What is Cash on Cash and how I calculate it?
Cash-on-cash (CoC) is a way to measure the cash flow percentage derived from an investment that you made. Generally, cash flow investors will look at cash on cash returns, as a starting point when considering an investment or comparing multiple investments. Cap rates, IRR and ROI do not always rule the day, they are justContinue reading “What is Cash on Cash and how I calculate it?”
Why invest in Real Estate
Investing in real estate is not a scary as you have been thinking, and with a little bit of understanding and planning it can become a path to wealth. Over 20+ years ago my father-in-law, a real estate broker, gave me the basic vision for investing in real estate (or as I like to callContinue reading “Why invest in Real Estate”
