DON’T open any new bank accounts. Keep all your banking the same.DON’T open any new credit cards. Pay everything off every month. Don't buy more than you can afford (that's also good
Knowing A Good Cap Rate When You See One
In today's real estate market buying a sound income property can be a bit tricky especially if you do not understand the local real estate market. What are the rents, is there a demand for the property to lease, how much rent, and how long does an average tenant stay. It is important to understand your tenant base before you purchase a property.
This article comes from https://www.entrepreneur.com/ by Grant Cardone and he makes some excellent points on what a good income property is.
"As a real estate investor that many people look to for advice, the number one question I get asked is, “What CAP rate do you buy?” but this is the wrong question. One piece of data doesn’t substantiate a deal. CAP rate is important but don’t get locked into focusing just on one term. All the pieces of data matter."
"Usually different CAP rates represent different levels of risk. Low CAP rates imply lower risk, higher CAP rates imply higher risk. The question is, what is the right CAP given the riskiness of the deal?"
"Is the property in Manhattan or rural West Virginia? A larger, wealthier,and better-educated population will drive a local economy more, this is why CAP rates are lower in a place like LA than in Memphis. This is why even within large metropolitan areas CAP rates can be significantly different from each other, with properties near downtown usually having lower CAP rates (and risk) than properties in the suburbs. But again, there are no strict rules to follow, every location has its perceived risk."
With over 17 years in the real estate industry, Brett’s primary focus has been on the improvement of housing in neighborhoods . He cooperates well with other brokers and agents that have clients in ....
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