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14 Nov The Dos and Don’ts of Property Investment

Every type of investment property – whether a fix and flip, a rental property, or another type of investment – has its own set of tips and tricks to increase the likelihood of a successful (meaning, profitable) investment. This article describes the dos and don’ts for each of these investment types:   The Universal Do Do Get the Right Team in Place Regardless of what type of investment you are looking to make, one of the most important steps is to ensure that you hire the right team to help you achieve your investment objectives. The team that will support your investment endeavors...

20 Oct The Best Way to Get a Loan to Fix and Flip a Property

For many real estate investors, outside funding is an essential part of purchasing investment property. While buying in cash is the simplest, an outright cash purchase may not be possible or even preferable, particularly for those who have liquid assets tied up in other investments or who wish to leverage their cash across many properties. Even investors who generally prefer buying in cash may find loans to be necessary from time to time, if, for example, a prior fix and flip is not completed or does not sell as quickly as anticipated, or the investor is maintaining cash levels as...

04 Oct 2022 Top California Cities to Buy and Hold Investment Properties in California

As one of the largest states in the United States, California covers a wide range of climates, cultural preferences, and, of course, real estate markets. From beaches stretching from the Mexican border to forested areas near the Oregon border, to the rolling hills of Napa Valley, to desert climates further inland, there are plenty of places to buy and hold rental properties in the Golden State. However, in 2022, some markets are better than others. These are some top cities for buy and hold investment properties in California – and why.   Factors to Consider A lot of elements go into assessing an...

01 Sep Expenses of Running a Rental Property

Running a rental property is often proposed as a quick, efficient way to make additional income, a simple avenue to expand one's portfolio and drive extra cash. However, established investors know that running an effective rental business can be easier said than done. Operating a rental property can take a significant amount of capital, both when getting started and to keep tenants happy. Here is what you need to know to properly budget for the expenses associated with a rental property.    Ownership-Related Expenses  The cost of purchasing a property can be significant, especially in the case of multifamily units or investment properties...

03 Aug Interest Only Loans – When They Make Sense and Why

Most homeowners and investors are familiar with a standard loan – one in which an amount of money is borrowed, and payments are made on both the interest and principal. However, this is not the only option. Interest-only loans, while less common, can be valuable tools in the right hands, particularly from an investment standpoint.   Interest-only loans are a niche product, and, in many cases, will not be the right choice for everyone. But under the right circumstances, it is possible to benefit from leveraging an interest-only option. So, what is an interest-only loan, how does it differ from a regular...

05 Jul Property Insurance Coverages, Part II, An Overview

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "Property Insurance Coverages, Part II, An Overview"   This overview of property insurance has relevance to property owners, real estate agents & brokers, mortgage agents & lenders, insurance agents & brokers, escrow officers, and title insurers. The article is broken down into part I and part II. Part I pertains to insurance in general. Part II pertains to insurance in relation to real estate transactions.   This is the beginning of Part II. The following subjects will be...

27 Jun The Capitalization Approach to Income Property Valuation as Interest Rates Rise

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "The Capitalization Approach to Income Property Valuation as Interest Rates Rise."   Definition of capitalization of earnings: The capitalization approach estimates the fair value of an asset such as income-producing real estate by calculating the net present value (NPV) of expected future net profits or net cash flow, referred to as Net Operating Income. The capitalization of earnings is determined by taking the property’s projected annual net income and dividing it by the market capitalization rate (Cap...

08 Jun How ADUs Can Expand Your Real Estate Investment Portfolio

Rental properties can be lucrative for property investors but purchasing properties in today's competitive market is still difficult. With property prices up nearly 20% over last spring in some areas, bidding wars are still common, and months of effort involved in just a single property purchase, it is no surprise some investors are waiting for the temperatures to cool.    But investing in a new rental property is not the only way to add to your real estate investment portfolio. It is possible to add on to existing properties in a way that will drive prices higher and add additional income streams. Accessory dwelling...

06 Jun Property Insurance Coverages, Part I, An Overview

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "Property Insurance Coverages, Part I, An Overview"   This overview of property insurance has relevance to property owners, real estate agents & brokers, mortgage agents & lenders, insurance agents & brokers, escrow officers, and title insurers. This article is broken down into part I and part II. Part I pertains to insurance concepts in general. Part II pertains to insurance in relation toreal estate transactions.   What is property insurance? Insurance is a form of protection whereby insurance companies...

17 May Market Value vs. Appraised Value They Are Not the Same!

Dan Harkey, at DanHarkey.com writes great articles about real estate on his website. You can read more articles by visiting his website. In this article, he discusses "Market Value vs. Appraised Value They Are Not the Same!"   There are multiple methods for determining a property’s value. There are also numerous definitions of value conclusions depending on the purpose of the appraisal assignment and the intended use. But original purpose and actual use may be different, as noted in appraisal examples # 1 and # 2 below.   Realtor- Market Value: The realtor’s job is to develop a market value estimate to sell the property on the open market. The...