A Financial Poise column highlighting the tips, tricks and tools you need to know to successfully invest in real estate.
Familiarize yourself with the important financial terminology used in connection with real estate investment, property operations and lending.
Should you leverage real estate investments? The answer depends on six factors, and our expert breaks down each one for you.
The smart real estate investor’s checklist for Deal Sponsor diligence. When considering investing in a passive real estate deal, the qualities of the sponsor are arguably more important than the underlying real estate:
That said, it is critical to understand that your due diligence requirements depend on the type of asset you are investing in. Here is a short list of investment property categories to consider; each comes with a unique set of inquiries necessary to fully understand its risks and opportunities.
Investing in a real estate syndication enables you to acquire a diversified portfolio of properties with the same amount of capital, and without having to undertake managerial or financial burdens.
There are a lot of misconceptions around the “like-kind exchange” rules found in § 1031 of the Internal Revenue Code. Our real estate investment expert, Tracy Treger, sets the record straight on 1031 exchanges.
The internal rate of return, or “IRR,” is the percentage that reflects what any individual investment is expected to yield from inception to sale. It takes into account anticipated cash flow and appreciation, as well as the time value of the capital invested.
When you select a residential property for investment, your criteria will be different than when you decide where you want to live personally. This is because investors care about cash flow and tax benefits, such as depreciation deductions that do not apply to a home.
A common concern many individuals have about buying real estate for investment is the potential time and cost of maintaining the property. Not everyone has the tools, expertise or inclination to fix leaky faucets, clean soiled carpets or plow a snow-filled parking lot in the wintertime.
When purchasing real estate for personal use, such as your home, you select the neighborhood you want to live in, determine your budget, and begin looking at houses in your price range, perhaps with the assistance of a realtor. Major factors impacting prices in a given neighborhood include the square footage of the home, its age, the quality of the construction and finishes, and amenities.