A popular question in the personal finance world is whether one should
make extra mortgage payments or invest the extra money. The easy answer
is to pay off your mortgage as it obviously is a good thing to pay off
any outstanding debt.
Making additional mortgage payments can result in significant savings
for a homeowner. Just by paying one extra payment at the end of each
year, you will reduce your 30 year 200,000 mortgage by 5 years. On this
same mortgage, given a 5.5% interest rate, you would save $39,500 in
mortgage interest. That is pretty significant savings.
Extra Mortgage Payment Or Investment?
Posted in:
Financial Security,
Real Estate
Ratios Real Estate Investors Should Understand
Posted in:
Financial Security,
Real Estate
Real estate investing requires operating decisions be made on a timely
basis. Some for day-to-day operations and others for long-run
investment strategies based upon the real estate investor's portfolio
considerations.
For that reason, real estate investors typically make use of a pro forma operating statement for management plan decisions. The proforma incorporates anticipated and forecast levels of cash flow and often includes a number of useful ratios, multipliers, and other analytical formulas developed to make better use of that cash flow information.
In this article, we will discuss several of those ratios and formulas.
For that reason, real estate investors typically make use of a pro forma operating statement for management plan decisions. The proforma incorporates anticipated and forecast levels of cash flow and often includes a number of useful ratios, multipliers, and other analytical formulas developed to make better use of that cash flow information.
In this article, we will discuss several of those ratios and formulas.
How Successful Investors Prepare Their Real Estate Analysis
Posted in:
Financial Security,
Real Estate
Individual investors who succeed at real estate investing never rely
simply on the numbers they're handed regarding a rental property. Once
a prospective real estate investment has been located, smart investors
always conduct their own close examination of the property's income,
expenses, cash flow, rates of return, and profitability.
Regardless what sellers or agents claim, smart real estate investing always validates a property's numbers.
To achieve this, smart investors rely on a variety of reports and rates of return to measure an income property's financial performance. And we'll consider several of these reports and financial measures in this article.
Regardless what sellers or agents claim, smart real estate investing always validates a property's numbers.
To achieve this, smart investors rely on a variety of reports and rates of return to measure an income property's financial performance. And we'll consider several of these reports and financial measures in this article.
The Benefit of Income Property Tax Shelter
Posted in:
Financial Security,
Real Estate
Tax shelter is one of the returns associated with real estate
investment that benefits income property ownership. Thanks to the tax
shelter benefits provided by the tax code, a real estate investment can
shelter some of its own income from taxation and occasionally shelter
income received from other investment sources as well.
It is one of the true benefits of income property ownership: the ability to tax shelter income.
In this article, we will introduce you to and discuss two allowable deductions for real estate investment properties that provide tax shelter.
It is one of the true benefits of income property ownership: the ability to tax shelter income.
In this article, we will introduce you to and discuss two allowable deductions for real estate investment properties that provide tax shelter.
What Internal Rate of Return Means to a Real Estate Analysis
Posted in:
Financial Security,
Real Estate
There's sound logic for using internal rate of return (IRR) in a real
estate analysis: It considers the aspect of time value of money and
therein supports the notion that the timing of receipts from a rental
property can be as important as the amount received.
Unlike some other popular returns used by investors to analyze the performance and profitability of rental income properties that don't account for the time value of money such as capitalization rate and cash on cash, IRR does.
As a result, because it calculates for time value of money and provides a linkage between present value (PV) and future (FV) of any benefit stream, internal rate of return is generally more popular amongst real estate investors than other rates of return.
Unlike some other popular returns used by investors to analyze the performance and profitability of rental income properties that don't account for the time value of money such as capitalization rate and cash on cash, IRR does.
As a result, because it calculates for time value of money and provides a linkage between present value (PV) and future (FV) of any benefit stream, internal rate of return is generally more popular amongst real estate investors than other rates of return.
Stop Foreclosure with a Loan Modification
Posted in:
Real Estate
Stop Foreclosure helps the borrowers who cannot make loan payments and hence helps them save their home from foreclosure. If any homeowner has a fear of loosing his/her home, he/she has a wide choice to help him save his home from foreclosure. Whatever may be the situation of the borrower the financial institutions offer great help to them and hence stops foreclosure on their home.
Real Esates: Finding Great Deal in Today's Real Estate Market
Posted in:
Real Estate
Real esates can refer to a wide range of properties including
residential, commercial and raw land. Real estate can also encompass
people or organizations that purchase properties for profit or
non-profit purposes, such as Habitat for Humanity.
3 Strategies for Using Your IRA to Invest in Real Estate
With real estate prices depressed and a lot of wealth sitting in
qualified plans, you may wonder how you can use that wealth to invest
in real estate. In this article I offer considerations and strategies
for using your IRA to position yourself in real estate for your future
benefit.
Real Estate Investing - The Benefits from an Expert Investor
Posted in:
Real Estate
The Benefits of Investing in Real Estate: I-Tax Shelter II-Leverage III-Inflation Hedged Income IV-Tax Deferred Income* V-Perpetual Income Benefit I-Tax Shelter Through owning income producing real estate, Investors are able to use depreciation to offset a portion of the income a property generates. Through effective use of cost segregation.
Roth IRA Rules--A Powerful Wealth Builder
Posted in:
Real Estate
I am about to show you a very powerful way to build your wealth by
investing in real estate. One opportunity that I want to bring to your
attention is what is known as a Roth IRA. Here, I am going to discuss
the definition of a Roth IRA , Roth IRA rules and how to use the Roth
to your advantage to build your real estate investments.
What Type Of Account Can My Rollover IRA Be Put Into?
Posted in:
Real Estate,
Tax Advantaged Investments
There was a time when I needed to know; what type of account can my
rollover IRA be put into. I was changing jobs and had a substantial
amount in an employer-sponsored 401k. Like many of you, I was unaware
of all of my options. There was a lot to learn. Here's a brief
overview.
The Roth Account The idea of a Roth account appealed to me, because qualified distributions are never taxed. But, since my 401K contributions were automatically deducted from my paycheck and not subject to yearly income taxes, I had to be careful.
The Roth Account The idea of a Roth account appealed to me, because qualified distributions are never taxed. But, since my 401K contributions were automatically deducted from my paycheck and not subject to yearly income taxes, I had to be careful.
Why Use A Self-Directed Roth IRA for Real Estate Investing
Have you ever thought of purchasing property solely for investment
purposes? Not sure of what or how to do it? Or maybe you did or do not
have the money or credit to do so. Did you know that you could use your
IRA for this very purpose?
Although, you do need to have a 'self-directed IRA' and not a 'traditional IRA' to be able to invest in real estate. But what's even better, is the self-directed Roth IRA. A self-directed Roth IRA gives you the largest diversified portfolio possible with 100% control over investment decisions. The self-directed Roth IRA is like the Donald Trump of IRAs, it's an IRA on steroids. It totally rocks!
Although, you do need to have a 'self-directed IRA' and not a 'traditional IRA' to be able to invest in real estate. But what's even better, is the self-directed Roth IRA. A self-directed Roth IRA gives you the largest diversified portfolio possible with 100% control over investment decisions. The self-directed Roth IRA is like the Donald Trump of IRAs, it's an IRA on steroids. It totally rocks!
