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Real Estate

What Are the Costs of Owning Rental Property?

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Housing market conditions in some areas of the country allow for substantial rental income based on high real estate values. Without a doubt, you can purchase rental properties and achieve a good return on your investment.

However, some people see these conditions and assume they can effortlessly collect rent each month from their tenants. [Read more…] about What Are the Costs of Owning Rental Property?

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IRR vs. ARR: What’s the Difference?

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Key Takeaways

  • ARR is  formula that calculates the annual percentage rate of return expected from an investment, compared to its initial cost.
  • ARR is a simple calculation that can be done on the back of a napkin.
  • IRR is more complex equation that is best calculated with a spreadsheet or calculator.
  • IRR stands for for Internal Rate of Return. It lets you estimate the future profitability of potential investments.
  • IRR lets you factor in the time value of money, which ARR does not.
  • IRR is preferable if you won’t earn cash flow from an investment evenly over time.

[Read more…] about IRR vs. ARR: What’s the Difference?

Self-Storage Investing: How to Profit from Self-Storage Real Estate

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Why should you get started with self-storage investing? The self-storage market has created solid real estate investment opportunities with an average annual ROI of 16.9% since 2009, according to Forbes. And it’s maintaining strong industry growth despite the pandemic’s economic shake-up.

How do you get started in self-storage investing? There are only three ways to invest in self-storage facilities: buy stock in public self-storage companies, invest with a private equity firm that specializes in self-storage investing, or buy a physical self-storage facility and operate it yourself. [Read more…] about Self-Storage Investing: How to Profit from Self-Storage Real Estate

Types of Real Estate Loans—And How to Apply for Them

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Real estate is booming right now. In May 2021 alone, home sales were up 44.6 percent from the previous year. Given this rise, many people are looking to get into the real estate game.

Whether you are looking to buy a primary residence or make your first real estate investment, you are likely wondering how to apply for real estate loans. Are you trying to learn what types and options are available?

Read on to learn how to apply for a real estate loan and make your investment dreams a reality. [Read more…] about Types of Real Estate Loans—And How to Apply for Them

What Is a HELOC? Your Ultimate Guide to Home Equity Loans

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Home equity can be a major benefit of buying a home. You can find many amazing places to rent, but if you’re the tenant and not the owner, then you won’t benefit when the property value goes up.

The difference between your current home value and the amount of your mortgage loan is called equity. The equity in your home can be cash in your pocket with a home equity line of credit (HELOC).

What is a HELOC? Check out this guide to understanding when and how to use a home equity line of credit. [Read more…] about What Is a HELOC? Your Ultimate Guide to Home Equity Loans