fulton: What is my Property Worth?
- 08/27/09 02:02 PM
What is my property worth? That’s the most common question that I get in real estate. And it is a question that’s loaded with all kinds of other questions. Value is the amount an investor would pay based on that buyer’s objectives. In other words, the buyer determines the value…no one else. The seller doesn’t, the realtor doesn’t, and certainly the appraiser doesn’t. So, value is an objective factor. Value reflects the investors own opinions, financial situation, his objectives and his assumptions about the property and the future economy. The best thing we can do is take a stab at the … (0 comments)
fulton: Alpharetta Broker Says Use Your Banker's Money for Huge Returns
- 08/27/09 02:01 PM
Leverage is the use of borrowed funds for the purchase of an asset, such as real estate. If you make cash flow because of this, then it’s called positive leverage. Using leverage increases your power by using other people’s money, namely your banker’s money. One advantage of using this leverage is obviously you can purchase more expensive property. Without financing, most of us wouldn’t be real estate investors. Let’s face it, most people can’t whip out $200,000 to buy a rental house, but some of us can find $20,000. It also allows you to keep your cash to purchase even more … (0 comments)
fulton: What's a Dollar Worth Today vs. Tomorrow?
- 08/27/09 01:53 PM
Another term that’s important to get a conceptual grasp of is “net present value.” It’s important to understand this concept because most of your real estate income will come in the future. Therefore, you must know what that income is worth today. In my real estate courses, I’ve taught that a dollar today is worth more than a dollar tomorrow. This is due to two reasons: 1. Number one is the affect of inflation on the value of a dollar. Inflation decreases the value of your dollar every day. If it takes one dollar today to buy a loaf of bread … (1 comments)
What is my property worth? That’s the most common question that I get in real estate. And it is a question that’s loaded with all kinds of other questions.;)
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