It happens all the time when you engage in acquiring a new property through contract, there is not much information about the property known at that stage. All you may know is the details of the financial statement and rent payroll or you've visually inspected the place by driving around the block. This is more than enough details to make a solid educated offer on the place but it does
Commercial real estate can lead to just about any lifestyle you can dream up, but if you're not careful how you play your cards, you can find yourself living through some expensive lessons. Fortunately, even in today's housing crunch, crossing the line from multiple homeowner to one who invests in commercial real estate isn't all that difficult, as long as you plan out a realistic strategy and
If you are a real estate professional then you know about the gross income multiplier, GIM or the formula that determines the value of rental real estate. It has been used for decades. 
There are many schools of thought on how to determine the value of rental property but I always use my readings as a rule of thumb. Any real estate textbook will tell you not to invest in a property with a
One important aspect of due diligence is to know your documents but specifically understanding the details of the lease, insurance policy, and title policy. The lease, out of all of these is of utmost importance because it remains the roadmap for future events concerning the property. Part of the issue with the lease is language. There is a lot of strange stuff, interesting jargon
For many the differences between Commercial real estate properties and residential properties can be daunting to define. It is all about assessing value. The value of a commercial property can be determined by setting an inverse proportion to the degree of risk inherent to the continuance and stability of the income stream from the property. Each type of commercial property has varying degrees
Posted by: Elliot Barron in Analyze on
Jun 14, 2008
You can use one of a variety of approaches to analyze a real estate investment, or you can use a combination of approaches. It's just as important to choose the right way to analyze a property as it is to carefully pick the right property, since the wrong approach can mean lost profits. Below is an overview of different approaches used to assess the value and returns on a property, with notes
Posted by: Elliot Barron in 1031 Exchange on
Jun 13, 2008
If you're considering selling an investment property and buying one or more new ones, consider a 1031 Tax Deferred Exchange. Using this section of the IRS tax code can save you a lot of money in the form of deferred capital gains taxes. Of course, checking with your tax advisor before doing one of these property exchanges is a good idea. However, once you've determined that a 1031 exchange is
There are a wide range of deductions available for most real estate investments. Investors will often seek to purchase properties because of tax benefits available to the owner. Eligible income tax deductions for all properties include things like mortgage interest paid and property taxes. Even more deductions such as maintenance expenses and hazard insurance premiums are available on
There have been huge shifts in the real estate industry in the last few years. While the market have seen a dramatic downturn, and interest rates have tumbled, sellers and buyers are asking themselves what it all means, especially when it comes to property values. The topic of "appreciation" is one of particular interest, and I'm not talking about a broker buying you a hand-held vacuum as a
A smart way to purchase property without regrets after the sale consummates, is to put safe guards in your sales contract that give you a safety net. One of these nets is to always make any offer subject to a SATISFACORY property inspection. Now, whether you can perform this yourself or hire a professional, you still have a legal way of voiding the contract to purchase if something should be