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Showing posts from February, 2022

In Property - You Make Money When You Buy, Not When You Sell.

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In Property - You Make Money When You Buy, Not When You Sell. Ever had somebody tell you that he just made so much money selling some real estate? Fact is, that person did not make the money selling the real estate holding, chances are buying in the first place generated the profits. A common saying in real estate investing is, “You make your money when you buy, not when you sell.” This means that your purchase price is the main factor that determines your profit later on. You can’t only rely on an appreciating market, wishful thinking to create your profit margin. Despite it being one of the most common sayings in real estate, investors still miss the significance of this first and most important step. Making your money when you buy simply means buying “right.” Lets look closer at a sale. One has to assume that the market as a whole is well informed and has professional assistance in form of real estate professionals. The best deals in the market tend to sell first and overpriced prop

What are Comparables in real estate?

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 What are Comparables in real estate? A Comparable is a recently sold property in your area that’s similar to your property in location, size, condition and features. How sellers use real estate Comparable Sellers, especially those selling by themselves use comps to determine the right price for their property. Even if you’re selling your property with the help of a real estate agent, you’ll want to be familiar with Comparable so you can make sure you’re comfortable with the price your agent recommends. How buyers use real estate Comparable Buyers reference comparables to decide how much to offer on a property. More specifically, they want to make sure they don’t overpay for the property they’re buying. How appraisers use real estate Comparable When an appraiser comes to your property, they will source their own Comparable to help accurately assess how much your property is worth. Appraisals can happen for a couple reasons but most times sellers get an appraisal to help them accurately

How liquid is each real estate investment strategy?

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Liquidity vs. illiquidity:  How liquid is each real estate investment strategy? If you're interested in real estate investing but also concerned about how quickly you can increase your cash flow, keep reading. Here are different real estate investment strategies by their liquidity risk. Buy-and-hold strategy. Liquidity level: Illiquid asset To start, a buy-and-hold investment strategy is what most people think about when they consider property investment. This strategy involves buying a property, finding a tenant to rent it, and collecting rental income. Typically, this strategy has one of the highest levels of real estate liquidity risk because after you might have waited for the property to appreciate before you sell it for profit, it's usually not easy to sell it off in the market because the real estate market isn't very liquid. Whether you are interested in investing in residential or commercial real estate, this type of investment strategy is best for investors who ha