Common wisdom says debt is bad and you should pay it off as quickly as possible. But the numbers don’t work. When you start to understand real estate investments and rates of return, you realize you can make more money by investing your money than paying off debts. Only, is that the right move?
The answer […]
Jack Canfield, the author of Success Principles and Chicken Soup for the Soul, likes to tell a story about a retired woman that’s dreaming of going back to college. She hesitates because it will take at least four years to finish, and by that time, she will be 69 years old. Jack finally persuaded her […]
Negative cash flow only makes sense in one case: you’ll make money at the sale. Not all landlords are in the long term holding business; you can profit from income-producing real estate investments in other ways too. Many investors are happy to have any income from their real estate investment, even if it’s negative. It […]
The magic number for every landlord in the universe is… $1423.42. Don’t believe me? Then I’ll give you the more truthful and less sarcastic answer: it’s completely relative. I can’t give you a concrete answer and neither can anyone else. Some real estate investment gurus will give you a formula and tell you to run […]
For some reason, everyone in the real estate investment industry seems to think that you need to be old to be successful. When a twentysomething walks into a bank and applies for a $500,000 loan, the loan officer will look at them funny. How can they trust someone so young with so much money? Sometimes, older […]
Ask several experienced landlords about advertising and they’ll tell you it’s a waste of money. But it’s not true. In certain circumstances, where other free methods are inadequate, a landlord can use advertising to give their real estate investment that extra little push toward positive cash flow. The key is understanding how to focus your advertising […]
Vacancy — no word is more motivational to a landlord. You’re required to pay your mortgage payment, regardless of whether you have the house rented. So, finding a tenant literally makes the difference between losing money or making money from your real estate investment.
The conventional wisdom is to buy an ad in your local […]
This is a common problem for landlords. Sometimes, tenants don’t understand that a 12 month lease means they’re legally obligated to pay their rent for 12 months. So, they decide to move out. Your cash flow disappears and you have to spend months fixing up the property and finding a new tenant. Is there anything […]
As a landlord, you need to choose your investments carefully. Pick the right property and you’ll bring in profit, month after month, year after year. The opposite is also true. Buy a dud rental property and you can enter a world of frustration and loss that lasts months or years.
For a landlord, each real estate […]
Yes! Sometimes, snatching up a house before it goes into foreclosure will give you a better real estate investment than waiting until after the bank finishes foreclosure proceedings. The reason is control. After the bank forecloses on a property, they control it. The loss mitigation officer decides when to sell and for how much.
On […]