Real Estate Basics 101

Real Estate Basics 101

𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐲

⟡ Buy & Hold (you rent it out)

⟡ Buy, renovate and sell (flipping)

𝐓𝐲𝐩𝐞:

⟡ 𝑹𝒆𝒔𝒊𝒅𝒆𝒏𝒕𝒊𝒂𝒍 (multi-family homes, condos, single-family homes, apartments, etc.)

⟡𝑪𝒐𝒎𝒎𝒆𝒓𝒄𝒊𝒂𝒍 (Retail, office, hospitality, industrial)

𝐊𝐞𝐲 𝐟𝐢𝐠𝐮𝐫𝐞𝐬:

⟡𝐑𝐎𝐥 - Return on Invest (relation of how much you put in the deal and how much you get out - example: yearly rental income divided by purchase price)

⟡𝐍𝐎𝐥 - Net operating income (Total rental income minus expenses)

⟡𝐂𝐚𝐬𝐡𝐟𝐥𝐨𝐰 - NOl minus mortgage payments

𝐏𝐫𝐨𝐟𝐢𝐭 𝐝𝐞𝐭𝐞𝐫𝐦𝐢𝐧𝐢𝐧𝐠 𝐟𝐚𝐜𝐭𝐨𝐫𝐬:

⟡ LOCATION of the property is key

⟡ AGE of the property and CONDITION

⟡ Purchase PRICE

𝐑𝐢𝐬𝐤𝐬:

⟡ Vacancies (no tenants, rental units are empty)

⟡ Tenants not paying rent

⟡ Depreciation of the property, when maintenance isn't carried out

𝐀𝐝𝐯𝐚𝐧𝐭𝐚𝐠𝐞𝐬:

⟡ You get paid monthly (Cash flow)

⟡ Property value rises (appreciation)

⟡ Inflation hedge

⟡ You can control with the limited amount of money a bigger asset (leverage)

To 𝐥𝐞𝐚𝐫𝐧 more about real estate, Contact me to get a 𝐬𝐭𝐞𝐩-𝐛𝐲-𝐬𝐭𝐞𝐩 on how to 𝐦𝐚𝐤𝐞 𝐦𝐨𝐧𝐞𝐲 with real estate. 🔑💎