The Capitalization rate (cap rate) is an important term used in real estate investing. It is calculated by dividing the property’s net operating income by the sale price. Investors use this number to determine whether or not property is worth acquiring. Cap Rates in Real Estate Cap rates vary in different areas based on several factors. For instance, you may find a lower cap rate in a more desirable area than you would in one that is less desirable. When looking at rates in this instance, you could almost compare it to that of a seesaw. When a neighborhood is Read more…

Investing in real estate is the best way for most of us to reach our financial goals. It’s the most profitable investment path available to the average American. By gradually building your real estate portfolio, you are guaranteeing your family financial security for their lifetime. And one of the best times to be buying real estate for the long-term is right now. But before you jump the gun, take it from someone who knows a lot about this business, there are a few things you need to understand about investing in real estate. Know how to value a property. Perhaps Read more…

The due diligence period during a real estate deal is the time for the buyer to fully investigate the property to decide whether or not it is a viable deal. Knowing how to invest in means knowing where to go to find the information that will help you complete the due diligence process. Home Inspector A local home or building inspector is the first place you want to start in this process. Your main goal is to make sure that the property is up to code and to identify any problems that you may want the seller to address before Read more…

If you’re considering real estate investing as a way to build real and lasting wealth, I’ve got a piece of advice for you – consider investing in distressed properties. Now I know what you may be thinking… “I don’t want to buy someone else’s headache.” But consider this; distressed properties can be a great value. And that’s what we want to look for when we’re investing in real estate – the best values. So let me tell you a little bit about the kind of distressed properties you might come across, and how to know which ones are real values, Read more…

In order to learn how to buy property below market value, there are a few things that you have to understand about real estate. One is to know the difference between physical and financial distress of a property. Financial Distress When a property is in financial distress, it means that the homeowner cannot meet the financial obligations, or is having a difficult time doing so. For investors, this is a great time to come and give some assistance to the homeowner, all while adding a new property to your portfolio. The key to knowing how to buy property below market Read more…

As a real estate investor for more than a decade now, I’ve observed all kinds of buyers and sellers of properties. It’s always a relief to work with experienced and confident people when doing deals – it makes the process of buying or selling so much easier. But inevitably I do come across those real estate investors who are unsure of themselves and approach the deal with fear and doubt. When possible, I walk away from those deals. Here’s how you can learn to invest in real estate without this fear and doubt, and greatly improve your chances of winning Read more…

  Working in the real estate business can sometimes be stressful, especially for investors who deal with risk on a daily basis. Keeping your emotions in check when a deal goes bad, or when you find out startling news during due diligence, can sometimes be difficult. There are a few ways to make sure that you maintain your cool throughout the day so that you can continue to run a successful real estate business. 1. Do Your Homework. Knowing the details behind property deals, including foreclosures, will drastically reduce the amount of stress you have during closing, or at times Read more…

Anyone interested in building wealth by investing in real estate needs to determine just what kind of investor they are. Understanding things like your risk tolerance, availability of capital and timeline are essential before you even begin investing in real estate. But perhaps the biggest thing when you are thinking about building a real estate portfolio is to understand your investment criteria. Knowing your investment criteria means evaluating just what you want to do with real estate. Are you a buy and hold type of investor, or do you want to fix and flip? Both strategies are valid, but knowing Read more…

Due diligence is an essential step in planning a successful real estate investing strategy. While it may not be the most entertaining part of the business, due diligence is absolutely necessary to get a full understanding of the type of investment that you’re about to make. Here are the top three reasons to take the necessary time to perform due diligence in real estate. 1. Decrease Investment Losses. Completing thorough due diligence as part of your investing strategy will actually help you mitigate risk. Taking time to run all the numbers, do thorough property evaluations, and check the title.  Due Read more…

If you’re serious about creating real and lasting wealth by investing in real estate, then the one thing that you need to always remember is to treat your real estate investing as a business and not a hobby. People who think that they can approach real estate investing half-heartedly or without doing the work are fooling themselves. In fact, the people who lose out on the deals I win are almost always the real estate ‘hobbyists’. So, what does it take? Well let me tell you, it takes a lot of work doing the research, learning the right way to Read more…