Archive for the 'Getting Started' Category
The one percent rule is an analysis tool used by real estate investors to quickly screen potential rental properties. In this article I’ll go into more depth about what it is, when to use it (and when not to!), and why it can be helpful. I’ll also address the one percent rule in high-priced markets. There are times when it makes sense to break the rule, but there are also risks to doing that.
More than anything, the one percent rule is about using income discipline when buying investment properties. The mindset of disciplining yourself to only buy real estate investments that meet certain income criteria will help you make more money and avoid common investing pitfalls.
Let’s get started.
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Conventional lending is the most popular source for mortgage lending in today’s 1 to 4 unit properties. Conventional lending can be either conforming or non-conforming. If it’s conforming, it will be for an amount under a specified maximum. In most areas, this is $417,000 for a single family home, but the amount is higher in certain areas, like Hawaii or metropolitan cities. When you are purchasing a multi-family property will graduate up to $625,500. Nonconforming mortgages are for higher amounts usually called a jumbo loan.
The biggest difference between a conventional mortgage and other mortgage programs is the required down payment. Government-backed mortgages have low down payment requirements to help home buyers move into a primary residence.
What Are The Risks In Turnkey Real Estate Investment
Even with turnkey real estate investment, there might be some risks along the road, but this article will give the you an idea of how to deal with these bumps without losing too much. No investment is risk free and so is true for turnkey real estate investments. There is so much more that goes into turnkey real estate investment than simply buying a cash flow property and enjoying a passive income, and all new investors need to know about these risks in turnkey real estate investment. Even more seasoned real estate investors are now being more cautious than ever before when it comes to choosing a turnkey real estate company.
Whether you are a seasoned or new investor, you can use this article on risks in turnkey real estate investment and refresh your memory and possibly even add new techniques to your knowledge base.
Headlines such as this break my heart: “With $15 Left in the Bank, a Baby Boomer Makes Peace With Less.” But I predict that we’re going to see more and more like this in the coming months and years. That’s because the problems with retirement age people are bigger than anyone imagines.
This story is merely a collection of symptoms of the bigger problem. It’s the story of Kathleen Wolf, a woman trying to do the best she can. She has spent many decades living and working in Monterey, California. She built a very happy and prosperous life there. But with the subprime meltdown, her considerable wealth in real estate disappeared almost overnight. It didn’t take long for her bank balance to reflect that she had just $15.
This article was inspired by a series of posts by fellow early retirement bloggers about how to live off your wealth during retirement. They called this a retirement draw-down or withdrawal strategy, which, by the way, could be very different than your strategy to build wealth. I touched on my withdrawal strategy in How to Retire Early & Confidently Using Real Estate, but I will go into more depth in this article.
For me, a good retirement withdrawal strategy has two primary goals:
- Pay for all your current living expenses
- Not run out of money in the future
It turns out that rental income and other real estate investing strategies work great to achieve these goals. And real estate can make a big difference whether it’s a small or large portion of your overall portfolio.
So, in the rest of the article I’ll share ideas on how to use rentals for a retirement withdrawal strategy.
Real estate has long been viewed as a sound investment. Benefits of Investing in real estate are directly related to substantial increase in wealth of an individual. Wholesaling and buying a turnkey rental property are just a couple of the ways investors can benefit from real estate. The important benefits of investing in real estate are increase in property value due to appreciation as well as good cash flow in the form of rental income. Education and networking are very important to become successful in real estate investing.
The other day a friend of mine approached me excitedly, saying, “I found the house of my dreams. It’s in foreclosure and the bank will sell it to me for a great price.”
“How good is the price?” I asked.
“Just before the real estate market crashed, the seller was asking $780,000 for the property. Today, I can buy it from the bank for $215,000. What do you think?” she asked.
“How would I know?” I replied. “All you’ve given me is the price.”
“Yes!” she squealed. “Now my husband and I can afford it.”
“Only cheap people buy on price,” I replied. “Just because something is cheap doesn’t mean it’s worth the cost.”
Real estate values estimation has several uses ranging from sale listings of real estate and analysis of investments to property taxes and insurances. However, it’s particularly necessary when it comes to real estate sales and passive investing. After all, the value of a property is not just based on the initial payment made or the expenses for property upkeep and modifications. Instead, a property’s worth is also based on comparing recently sold neighboring properties’ prices. With this in mind, below are ways to find out property values, including home value estimator tools and methods.
7 Ways to Determine Real Estate Values
Each year, Think Realty honors the leaders and change-makers of real estate who represent the best the industry has to offer. These individuals are nominated by their peers, and the finalists are determined by an independent panel of judges who are former Think Realty Honors recipients themselves.
Their stories range from new investors just beginning (and exponentially growing) to true industry veterans with decades of experience, from single-family investors focused on just a few neighborhoods to multifamily moguls buying millions of dollars’ worth of real estate at a time, and from major industry players employing hundreds of real estate experts to one-man (or -woman) operations making a difference with just the energy of the CEO alone.
This year, Norada Real Estate’s very own founder and CEO, Marco Santarelli, was awarded Think Realty’s highest honor of Master Investor of the Year.
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Single-family home renters earn more money, have more kids, and are more likely to be married than multifamily renters.
Comparing the 16 million single-family renter households to the 28 million multifamily rental households:
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If you made $108 million dollars, would all your money problems be solved?
If you answered yes to this question, there’s a chance you don’t understand that having more money doesn’t solve your money problems. It just brings new ones.
Take for instance the story of Antoine Walker. In 1996, he was drafted by the Boston Celtics and had a storied career.
What are the best ways for beginner investors to get started in real estate? There is more than one way to invest in real estate. What you choose may depend on your immediate needs, long term goals, your aptitudes, and resources.
The following info-graphic by Offer Climb Houston and Offer Climb Phoenix breaks down these options in an easy to analyze way, followed by more in-depth examples, and sources for empowering new property investors to get started.
According to the VIX index — which is known as the “Fear Gauge” — investors are feeling calmer about the stock market than they have in 25 years.
This “Fear Gauge” is at it’s lowest since 1993.
And professional traders are scared out of their mind.
Why would that be?
When it comes to getting rich, so-called experts are full of advice on how to save your way there. There’s no shortage of articles about couples who saved their way to $1 million or “expert” tips on how to save more money.
And these articles are true. You can save more money following their advice. But you have to consider the cost. Because the saver mindset is a very different and dangerous mindset about money than how the rich think about money.
Before you can become rich, you must decide whether you want to be secure, comfortable, or rich. These are called core values, or the reasons you want to invest.
The first reason most people invest is because they want to feel more secure. That’s why Social Security or a retirement plan is very popular with people whose core value is the need for security. Security is a very important aspect of investing. You don’t want to be a destitute out on the streets with nobody taking care of you.