Real Estate
Conducting a property investment analysis will help ensure you choose the right asset. Do a rigorous analysis of expected returns and cash flows and consider financing options and debt strategies.
Real Estate
The ratio of real estate to net worth depends on many factors such as age, location, existing assets and your risk appetite. A rule-of-thumb is to maintain 20% to 40% of your net worth in real estate.
Real Estate
Leverage in real estate is the act of borrowing money to buy property. Real estate leverage is a good strategy for building long term wealth but comes with higher risks in market downturns and lower cash flows due to mortgage expenses.
Real Estate
Evaluate your readiness for real estate investing. Analyze the market and analyze ROI, cap rates and breakeven rent, and model negative market scenarios as part of your analysis.
Real Estate
When considering buying rental properties, calculate the net operating income, Return on Investment (ROI) and Internal Rate of Return (IRR). You should also compare the investment to the opportunity costs, such as stock returns.
financial literacy
The nominal interest rate is the interest rate that is stated on a loan or mortgage and has not been adjusted for inflation. In investing, the nominal rate is the return on an investment before adjusting for inflation, fees or taxes.
Home Buying
House hacking is the act of generating income from your real estate property while living in it by renting out a part of the home you live in, or renting out units of a multi-family unit while living in one of them.