Successful real estate investors keep their eye on the real estate cycle to identify investment opportunities. Like the broader economy, there are four phases to the real estate cycle - recovery, expansion, hyper supply, and recession. The cycle repeats in waves so that the recession of the last cycle leads to the recovery period of the next cycle. As an investor, you can use the real estate cycle to match...
Continue reading this postA main benefit of becoming a real estate investor is the substantial tax advantage that will put money back in your pocket. Here are some of the basic tax benefits, but keep in mind that tax laws are constantly changing– possibly to your advantage. The best thing to do is speak to a knowledgeable accountant to find out the specifics. 1. Long Term Capital Gains The IRS taxes your property...
Continue reading this postIn a strong economy with low-interest rates, real estate becomes a very attractive investment opportunity. It makes sense to think about your options for financing before you look into properties for your portfolio. There are many options for financing, from conventional bank mortgages to private or hard money loans that use the property to secure the loan. Some investors use a mortgage broker to find the best loan for their...
Continue reading this postIt turns out that there are best practice guidelines that successful real estate investors follow, and you can follow them, too. People who meet their investment goals adhere to principles that guide them through the highly competitive real estate market. It is important to develop a strong knowledge of financial concepts and the markets that are likely to affect your investment. Start off by specializing in a particular type of...
Continue reading this postAsk seasoned real estate investors about the keys to success, and chances are you will hear about planning, thoughtfulness, and real estate investment goals. It may be tempting to follow your impulse and grab the first attractive deal that comes along, but it makes more sense to determine if that property fits your long-term plan. Successful investors are honest about how much risk they are willing to take, develop a...
Continue reading this postIf you want to be a successful commercial real estate investing, in-depth knowledge of the time value of money (TVM) is crucial. To understand the concept, let’s consider which is better, $10,000 now or $15,000 ten years from now. If someone offered to give you $10,000 today or $15,000 in ten years, what would you do? You would take the money now, of course! When you make that decision, your...
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