Real Estate Information |
|
Achieving Positive Cash Flow from Your Real Estate Investments
Even if you're counting on rising property values to eventually make a profit on an investment property, it's far more desirable to have a positive cash flow each month. If you're losing money on a property every month, it may not take long until your future profits will have been lost. Owning investment property is much more enjoyable if you're making money along the way. Here are a couple of ideas for keeping your investment property cash flow in the black: If you don't already own your own home, your first goal should be to live in your first "investment" property. Interest rates and down payments are considerably lower for a primary residence, and you won't have to deal with finding and managing tenants or absorbing the cost of an occasional vacancy. Once you begin looking for your first "official" investment property, you'll want to concentrate your search for less expensive homes, because they're generally easier to rent for a profit than higher cost houses. You can also purchase two or three smaller homes for about the same cost as one larger one, thus giving you an even greater cash flow. One of the easiest ways to achieve a positive cash flow is by obtaining a loan with a very low interest rate for the first several years. One example is known as a "payment option" loan, although these types of loans may not be available in all states. These loans allow you to set up an optional minimum payment, which can result in low monthly payments, often for the first five years. During that period, your minimum payment will increase by a small amount every year, although it's usually no more than a factor of 1.075. During the minimum payment period, your interest will still continue to accrue at whatever rate you've agreed on (such as 4.5%), but the interest that your payments don't cover will be deferred. At the end of the first five years, that deferred interest is then added on to the loan, and the loan becomes a standard variable rate loan. Normally, that's not a problem, however, because the property's value probably will have increased enough to cover the deferred interest. Another way to minimize monthly interest payments is through an interest-only loan. The period of most such loans is usually 5-10 years, during which time, you'll be paying only the interest on the loan. To make this type of loan work most effectively, it's best to sell or refinance the property by the end of loan period. There are many other ways to realize a positive cash flow on your investment properties, depending upon the financing options available in your area of the country. But regardless of where you live, it's always desirable to have your investment properties pay for themselves, and can move you a long way toward your goal of financial success as a real estate investor. (c) Copyright 2004, Jeanette J. Fisher and Robert S. Kramarz. All rights reserved. Jeanette Fisher, Design Psychology Professor, is the author of "Doghouse to Dollhouse for Dollars: Using Design Psychology to Increase Real Estate Profits," the only book to reveal interior design secrets on how to make top dollar investing in real estate. For real estate and interior design psychology books, articles, tips, and newsletters: http://www.doghousetodollhousefordollars.com. Robert S. Kramarz is a loan officer for a major loan brokerage. He has over 20 years experience in finance and business management and comes from a family a long background in real estate investing and banking. He specializes in providing financing for purchase of investment real estate. He can be reached by email at MrFunding@22cv.com. Further information is available at the website http://www.sweetloan.info.
MORE RESOURCES: Florida real estate sellers slashing home prices as inventory surges to uncomfortable levels New York Post How real estate commission changes could affect buyers and sellers The Washington Post Here’s the latest on commercial real estate sales in Baton Rouge Greater Baton Rouge Business Report The Folly of China's Real-Estate Boom Was Easy to See, but No One Wanted to Stop It The Wall Street Journal Real estate experts share a message for home buyers as they predict rising home prices through 2025 Fox Business Chris Hemsworth's Homes: Inside the Marvel Star's Real Estate Portfolio Architectural Digest Berkshire Hathaway's Real Estate Firm to Pay $250 Million to Settle Real Estate Commission Lawsuits U.S. News & World Report Blackstone makes more real estate moves InvestmentNews Navigating Real Estate Law with The Mullin Blankfeld Group KLAS - 8 News Now Former HGTV star gets jail time for real estate fraud WGN TV Chicago An ongoing issue for the Rockford-area's top-ranked real estate market: Not enough homes on the market Rock River Current Routt County real estate sales at $26.2M from April 19-24 Steamboat Pilot & Today Blackstone's Beleaguered Real-Estate Fund Stems Exodus The Wall Street Journal Warren Buffett's real estate firm pays $250M to settle antitrust suit over commissions New York Post EG Real Estate: A Block of Historic Downtown Hits the Market – East Greenwich News East Greenwich News Judge Approves $418 Million Settlement That Will Change Real Estate Commissions - The New York Times Can Robert Kiyosaki's Real Estate Investing Make You Rich in 2024? Norada Real Estate Investments Reversing the Real-Estate Doom Loop Is Possible. Just Look at Detroit. The Wall Street Journal Real estate, business leaders help honor Milwaukee-area real estate projects: Slideshow - Milwaukee Business Journal The Business Journals The Pipeline: Commercial real estate roundup for 4.26.24 RichmondBizSense Max Azria's Manse Hits the Market, an Edward Fickett House Lists, and More Real Estate News Architectural Digest This is America's Hottest Luxury Housing Market of 2024 Norada Real Estate Investments East Austin real estate booming after Tesla The Business Journals Mike Wyatt's legacy: Longtime Dallas real estate broker remembered - Dallas Business Journal The Business Journals 10 Cheapest Florida Beach Vacations for 2024: Affordable Beaches Norada Real Estate Investments This ornate Queens home with $1M of mahogany additions asks $5.77M -- one of the priciest in the borough New York Post A+ Real Estate: See How Much It Costs To Buy a Home in the Nation's Top 10 School Districts Realtor.com News Berkshire Hathaway's real estate firm to pay $250 million to settle real estate commission lawsuits The Atlanta Journal Constitution New Jersey DOI mulls $250m commitment to Bain real estate fund IPE Real Assets Solano Real Estate Scene: Back road to downtown Suisun City Fairfield Daily Republic Rockford Is Now America's Top Housing Market After an Improbable Turnaround The Wall Street Journal Some Exciting North TX Real Estate Projects in 2024 The Dallas Express From First-Class to Super Prime: A Luxury Real Estate Success Story News Channel Nebraska Solano Real Estate Transactions: April 26, 2024 | Solano Business | dailyrepublic.com Fairfield Daily Republic $2.2 million Key Biscayne townhome highlights this week's Real estate deals for Key Biscayne and Brickell Islander News.com reAlpha Tech Corp. Launches Claire, Real Estate's First AI-powered, Zero-Commission Smart Buyer's Agent Business Wire Real estate transfers: 3 Stark County homes sell for $500000 or more Canton Repository real estate market and insurance Sacramento Appraisal Blog San Francisco Buyers Bring Its Luxury Housing Market Back to Life The Wall Street Journal $5 billion real estate firm St. John Properties opens office in Plano The Dallas Morning News Real Estate Investment in Belize - Luxury Beach Front Opportunities | Covington-Maple Valley Reporter Covington-Maple Valley Reporter Berkshire Hathaway's real estate firm to pay $250 million to settle real estate commission lawsuits Bowling Green Daily News Coima selected for €500m Intesa Sanpaolo real estate mandate IPE Real Assets Homebuyers and sellers might spend less following major real-estate settlement - Evanston RoundTable Homebuyers and sellers might spend less following major real-estate settlement Evanston RoundTable Recent commercial real estate transactions - 4/24/24 BizTimes Milwaukee Cincinnati zoning changes: Homeowners rip into city - Cincinnati Business Courier The Business Journals Real-estate agent's ritzy Hamptons home used in fake Airbnb scam Business Insider Is The Housing Market Going To Crash? Bankrate.com Berkshire Hathaway's real estate firm to pay $250 million to settle real estate commission lawsuits MSN 9 Ways Rich Real Estate Owners Save Big on Estate Taxes Business Insider Agencies' headquarters in DC remained 'nearly empty' in 2023, real-estate board finds Federal News Network Real Estate Quarterly: Auctions On the Rise Los Angeles Business Journal Homes for Sale in New York and Connecticut The New York Times Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate The Wall Street Journal |
RELATED ARTICLES
Horses In My Back Yard Horses In My Back Yard by Jody Hudson, with Extensive Collaboration From Chris Hudson HORSE LOVERS: During my thirty years of selling rural land, I have frequently found that folks want some acreage so that they can own and ride horses. They LOVE horses in their own mind but have little if any of the real knowledge or experience necessary to raise one or more horses. Houses For Sale By Owner - Negotiating Tips Houses for sale by owner, also known as "FSBOs," are a unique case in real estate investment. Buying from an uninformed seller who thought he knew enough to handle everything by himself can be frustrating. Real Estate Investors Kick Away $1,000 Those new to real estate investing often fail to take actionbecause they don't have much cash. The truth is that thevery best investors got their start when they had little orno money. Property Investing Wrapping a property is a simple concept that can create passive income for you and will give the purchaser a chance to buy a property which would have otherwise been out of reach at that time. However, there are a few things you must know before you jump in and trip up on some of the technicalities. Selling Houses Fast: Basics of Design & Color Psychology Fixing up houses to ready them for sale includes a design plan for needed changes. Save money on transformation costs by choosing design details right the first time. Why Property Investors can Crash and Burn Many experts say you can't lose if you put your money into Property. Not true. Buying a Home in Westminster The city of Westminster is centrally located in the Denver metropolitan area. Its easy access to amenities in both Denver and Boulder really coax investors into buying a home in Westminster. 5 Factors of Selling a Home There are five major factors to consider when selling a home. These factors will greatly influence not only the final price you will get for the property, but also how quickly it will sell and how much grief you will suffer through the sale. The Real Estate Bubble Fallacy There has been a lot of talk lately about the "Real Estate Bubble", and a lot of folks are asking the question: "When it is going to burst"?They are saying that the market just can't sustain this level of growth and appreciation much longer, and I heat them say that it is inevitable that it must come crashing down soon. People are worried. Real Estate Website Marketing - 5 Steps to Crushing Your Competition and Doubling Your Business Getting your real estate website more traffic is easy if you know how Internet marketing works, not to mention search engine optimization. Your goal is to get as much traffic as possible to your website, but not just any traffic, targeted traffic. Mortgage Broker Training: How to Secure Loyalty From Realtors So you've just returned to your office after delivering an Oscar worthy presentation to a real estate agent. They're impressed and ready to do business with you. What Is a CMA "CMA" is an abbreviation real estate agents use for a Comparative Market Analysis. A CMA gives an estimated sale price for a property given current market conditions. Why You Need a Lender to Sell Your Home Home sellers who are prepared to help buyers find financing will sell their homes faster, and for a larger selling price. Think about your potential buyers: some of them will have already arranged for financing, but many don't know how to buy a house. 5 Hot Tips for Successful Real Estate Investment The last downturn of the global stock market saw millions of 'every day' investors having their fingers badly burned. Overnight life savings were eaten away, retirement funds went into decline and the economic forecast for all of us who had any money invested in stocks and shares was gloomy to say the very least. What You Can Do To Sell Your Home Fast Yes, you want to sell your home and you want to sell it fast. It may be a seller's market and every other home in your neighbourhood is selling and you think it's going to be a cakewalk selling your home. How To Get Top Dollar For Your Home - Fast 1. Time is money when selling your homeAfter you've made the decision to sell your home, the longer it remains unsold on the market, the more it costs you. Avoid The Traps Of Finance Most consumers are told where to get their mortgage because few people personally know and trust a mortgage or loan officer or correspondent (the same thing). It used to be agents would take their buyers out to find the house they wanted, then to their favorite mortgage company. FSBO - Selling Your Home FSBO (for sale by owner) - Is It Worth It? FSBO, what is it? FSBO means For Sale by Owner, and it's a term that's generally referred to when you're selling your home without soliciting help from a Realtor.FSBO, what's the benefit to you? You'll save thousands of dollars in commissions if you sell your home this way. Top 7 Reasons Why FSBOs Fail To Sell Their Home On Their Own! In the United States, less than 10% of all For Sale by Owners (FSBOs), are successful in selling their home by themselves. That*s because most people just give up because they don*t realize from the beginning the difficulty and complexity of the job ahead. Is a Vacation Home Right for You? Many of us dream about owning the vacation home in the Mountains, or on the Lake or Ocean. A place where one can retreat periodically from the hustle-bustle of everyday life. |
home | site map |
© 2006 TIGER MEDIA |