georgia: Alpharetta Real Estate Broker ask why Buy Real Estate vs. Stocks?
- 08/27/09 02:11 PM
With the stock market volatility making many sick to their stomach, investment real estate continues to hold steady. Real assets, as opposed to paper assets, are more stable in volatile markets for several reasons. Liquidity, scarcity, and tax benefits are three major factors that create a stable real estate market. First, liquidity of an asset is an important stabilizing factor. In the equity markets, stocks can be bought and sold in minutes. This ease of liquidity lends itself to investor mood swings. And, it lends itself to the volatility of the latest unemployment report or other government index report. Real estate, … (0 comments)
georgia: Loop Hole Closed Up by President
- 08/27/09 02:09 PM
The recent housing downturn has spawned some definitive action by the U.S. Congress in the form of a wide sweeping new housing law. It appears that the law effectively addresses some short term and long term problems of the housing market. One aspect of the new law, which was signed by President Bush in late July, removes some down payment assistance programs. One of these programs is the “Kiddie Condo Loan” which I wrote about in a recent article. This Federal Housing Administration (FHA) loan program was one of the best programs out there to help jump start a student’s credit … (0 comments)
georgia: 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)
georgia: 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)
georgia: 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)
georgia: Batter up! Time for investors to step to the plate.
- 06/16/09 12:49 PM
Now is the time for investors to begin to look at residential foreclosures as investment vehicles. As recently as a few months ago, the residential investment market was less than ideal for investors. However, due to incredibly low interest rates, increased tenant applications, and an increased supply of income properties for sale, it’s time for investors to hit the ground running.
Financing has been a hurdle for many. Because of the banking crisis, investment financing was difficult to come by. However, the new stimulus plan has eased up some financing requirements for investors. And, interest rates for investment properties … (0 comments)
georgia: Don't buy the wrong investment.
- 09/19/07 03:44 AM
The times are good for investors. That was the conclusion from my last column regarding the latest mortgage industry problems and their affects on landlords and tenants.The current credit crunch has stifled some potential home owners from purchasing their dream home, forcing many to stay in the rental market. This has been an encouragement to landlords who have suffered under stagnant rents and fewer prospective tenants over the last few years.At this time, there are many opportunities for investors in the real estate market. According to the Federal Reserve Bank, foreclosures are at an all time high in the national market. … (0 comments)
With the stock market volatility making many sick to their stomach, investment real estate continues to hold steady. Real assets, as opposed to paper assets, are more stable in volatile markets for several reasons. Liquidity, scarcity, and tax benefits are three major factors that create a stable real estate market.;)
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