A Serious Buyer Should Be Pre Approved

By on April 6, 2018

If you are new to the world of investing in income property, here are a few things you must know before you begin your search:

  1. Loan Pre Apprvoal
    You do not want to waste your time looking in a price range you do not qualify for. Or, you might qualify for more than you thought. A pre approval  lets you know what your purchase power is.
  2. Submitting An Offer
    Having your pre approval when submitting an offer lets the seller know that you are a serious buyer and ready to go. If a seller receives multiple offers, they tend to dismiss the offers with no pre approval. Cash is usually king in real estate but a pre approval and a good down payment is the next best thing.
  3. Research the Area
    Drive around different to areas or cities to narrow down which areas you would like to own in.
  4. CAP Rates
    Many newer investors think that the CAP Rate is the only thing that matters. This usually only matters when you are buying cash. You will usually get a higher CAP Rate in areas that are less desirable. For instance, coastal cities usually have a lower CAP Rate because the properties are worth more near the beach.

How Real Estate Adds to Retirement Income

By on May 4, 2016

For some investors, real estate is a viable option for generating money and diversifying your investments. When it comes to retirement, multiple streams of income may be the magic phrase. Perhaps you will have Social Security payments, retirement fund distributions,

Buying a Multi-Family Investment Property

By on June 4, 2015

Recently I wrote about the differences between buying a single-family home and a mutli-family property, focusing on using that property as a primary residence. But what if you’re considering buying a multi-family home as an investment property? Investment properties are

Pros & Cons of Forming an LLC for Real Estate Investments

By on May 20, 2015

Over the last decade, limited liability companies (LLCs) have become one of the most preferred forms of business entities through which to hold title to investment real estate properties. LLCs did not come into existence in the United States until 1977

The Benefits of Buying a Multi-Family Property

By on April 3, 2015

If you’re thinking about purchasing a home, you may be planning to buy a traditional, single-family property. And while any home purchase is a sound investment, you might want to consider the particular benefits of buying a multi-family property instead.

Gross Rent Multiplier (GRM) – How To Calculate It

By on January 13, 2015

Getting the GRM for recent sold properties:Market Value / Annual Gross Income = Gross Rent Multiplier (GRM)Property sold for $750,000 / $110,000 Annual Income = GRM of 6.82   Estimating value of property based on GRM:Let’s say that you did

Duplex, Triplex, Fourplex & Gross Scheduled Income – Good Steal of Bad Deal?

By on January 8, 2015

When purchasing a multi-family property (duplex, triplex, fourplex, apartments) it is important to pay attention to the rents that are being collected or GSI (gross scheduled income) vs what the market rents are in that particular area. Many long term

Five Things About Real Estate Investing That Make It Interesting Once Again

By on November 14, 2014

Many investors have given up on their dreams in the real estate market. However, it’s the time to give it another serious look and consider latest trends in the industry. Statistics show that repossessions and foreclosure are decreasing, while construction

Common 1031 Exchange Questions

By on September 3, 2014

How long do I have to own my property before I can exchange it? The longer the better. Unfortunately, there is no safe holding period for property to automatically qualify for an exchange. Keep in mind, the property only need