The Capitalization rate (cap rate) is an important term used in real estate investing. It is calculated by dividing the property’s net operating income by the sale price. Investors use this number to determine whether or not property is worth acquiring. Cap Rates in Real Estate Cap rates vary in different areas based on several factors. For instance, you may find a lower cap rate in a more desirable area than you would in one that is less desirable. When looking at rates in this instance, you could almost compare it to that of a seesaw. When a neighborhood is Read more…

The due diligence period during a real estate deal is the time for the buyer to fully investigate the property to decide whether or not it is a viable deal. Knowing how to invest in means knowing where to go to find the information that will help you complete the due diligence process. Home Inspector A local home or building inspector is the first place you want to start in this process. Your main goal is to make sure that the property is up to code and to identify any problems that you may want the seller to address before Read more…

In order to learn how to buy property below market value, there are a few things that you have to understand about real estate. One is to know the difference between physical and financial distress of a property. Financial Distress When a property is in financial distress, it means that the homeowner cannot meet the financial obligations, or is having a difficult time doing so. For investors, this is a great time to come and give some assistance to the homeowner, all while adding a new property to your portfolio. The key to knowing how to buy property below market Read more…

Due diligence is an essential step in planning a successful real estate investing strategy. While it may not be the most entertaining part of the business, due diligence is absolutely necessary to get a full understanding of the type of investment that you’re about to make. Here are the top three reasons to take the necessary time to perform due diligence in real estate. 1. Decrease Investment Losses. Completing thorough due diligence as part of your investing strategy will actually help you mitigate risk. Taking time to run all the numbers, do thorough property evaluations, and check the title.  Due Read more…