Why Real Estate Returns Are Higher than Stocks, Bonds and Mutual Funds

Why Real Estate Returns Are Higher than Stocks, Bonds and Mutual Funds Investing in rental property is like eating a hot fudge sundae. Buying stocks, bonds and mutual funds is like eating hot fudge with the occasional spoonful of ice cream.With real estate rentals, your returns include:1. Cash Flow from Monthly Rental Income – A Huge Scoop of Your Favorite Ice Cream 2. Buying Money – A Second Scoop 3. Tax Free Refinancing – A Third Scoop 4. Appreciation – Hot Fudge on Top 5. Write … [Read more...]

Friday Asia Digest – Pension & Retirement Funds Venture Overseas

Friday Asia Digest – Pension & Retirement Funds Venture Overseas Global cross-border investment trends intensified this week, as pension and retirement funds join the international property investing party. CalPERS, (California Public Employees’ Retirement System), the USA’s largest public pension fund, with assets of 237 billion USD,  is committing $530 million to invest in ARA, a new Chinese real estate funds which, in turn, invests in high-quality downtown office buildings … [Read more...]

Importance of Real Estate Maintenance Funds

Importance of Real Estate Maintenance FundsAn amazing run of good luck has come to an end. Despite owning a number of older rental properties, I haven’t had to deal with a major repair in almost two years. Recently I had to replace a water heater that failed and take care of several plumbing problems requiring extensive repairs. While I wasn’t happy about it, it wasn’t a problem because I had maintenance reserve funds set aside for such events. Of course, you have reserve funds for your … [Read more...]

Double Digit Returns to our Passive Investors?

Double Digit Returns to our Passive Investors?When we share our model with other real estate investors they are always intrigued by the idea of “Recycling our Capital”.  They get excited about the idea of passive or private investors investing in their business to super charge growth. However, something happens when we tell them that we pay our passive or private investors double-digit returns on repaired and rented units.  They say things like:“I would never pay that much!”“Why … [Read more...]

Pros and Cons of Working with A Turn-Key Company

Pros and Cons of Working with A Turn-Key CompanyWith such a diverse collection of real estate markets around the country, investors have many choices when it comes to where to invest in real estate. Some investors look for areas that were hit hard by the real estate crash in hopes of acquiring property that will experience a recovery in values over the next several years (ex. Phoenix, Las Vegas, Orlando). Other investors look for markets with very inexpensive properties that cash flow well, but … [Read more...]

Knowing When To Invest In Property Or Not To Invest in Property?

Knowing When To Invest In Property Or Not to Invest in PropertyMany Real Estate  investors in recent months have noticed a decline in REO and HUD inventory in their markets. While some may speculate that we are finally working through the majority of the foreclosure casualties from the real estate crash, many analysts believe the lack of foreclosures on the market has more to do with government intervention. Whatever the case, an investor who has been consistently buying distressed properties … [Read more...]

How To Train A Property Management Company

How to Train A Property Management CompanyThis past weekend I was digging through old DVD’s and “thinning” the big stack of movies we have and I came across a video I ordered online a few years back.  It was a DVD on “How To Train Your New Dog At Home”.  It was a slow Saturday and I suddenly found myself on the couch with the remote in hand re-watching this video and realizing how it wasn’t a video simply on training dogs, but really training anyone for anything.  As I was … [Read more...]