August 27th, 2012
Have you ever really wondered exactly what your property is worth? Do you just guesstimate the value? Well, here are some snippets from a great post I’d like to share with you today that really helps in this area of determining exactly what your property is worth! I hope you enjoy it as much as I did!
There are essentially three main methods of determining value. They are:
The CMA method
The CMA (Comparable Market Analysis) method is based on what similar or comparable properties have sold for in the past, typically within the last three months.
The Income Approach
The Income Approach method of valuation puts a value on the income generated from the property. This is the valuation method investors use most when evaluating an income property.
The Replacement Cost
The Replacement Cost method of valuation is simply what it would cost to buy the land today and build a new building with the same square footage with similar features.
You can read the entire post here.
If you’d like help with this, please don’t hesitate to get in touch with me any time at 604-882-6901.
Sincerely,
Michael Ponte, President & Founder
Prosperity Real Estate Investments
Phone: 604-882-6901
Tags: determining value, investment value
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August 13th, 2012
Part of being a Prosperous Investor means monitoring your market to understand what stage of the cycle you are in.
This is YOUR investment; YOUR business, so there are certain steps you need to take to ensure success (and not failure!) One thing you must do is track rental rates on a monthly basis and always ensure that you are getting your full increases. Work with your financial institutions to help you look at ways to improve your cash flow position.
Most banks won’t drop the monthly payment of your mortgage if the interest rate goes down. What happens is more money is paying down the principle with less going to interest. This way reducing your term of your mortgage faster, for example, 30 years would become 28 years.
If cash flow is important see the bank and have them drop the payment to reflect the current rate. If you’ve been paying a mortgage for 5 – 10 years you may want to extend the amortization to a full term reducing your mortgage.
Again, if cash flow is an issue it may make more sense for you to pay a penalty to increase your cash flow. I’ve had clients in this situation and losing $200.00 per month on their property. By switching the mortgage and paying the penalty they were put back into a positive position of over $175 per month.
It’s all about Cash Flow. Treat your real estate as a business and adapt to ensure your business is profitable.
If you have questions on this, or anything related to your real estate investing business, please don’t hesitate to get in touch with me.
Sincerely,
Michael Ponte, President & Founder
Prosperity Real Estate Investments
Phone: 604-882-6901
Tags: adapting to the market, real estate investing
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July 13th, 2012
Here is some great studying ideas that we recommend towards furthering your career in real estate investing.
Why not study real estate investing at home this summer, without having to travel, in the comfort of your own surroundings, and with the added convenience of hitting the replay button whenever you want?
REIN™’s top-rated two-day live seminars are also available as Home Study Courses, with professionally recorded audio and all the high-quality printed materials from the live events. Plus, you get bonus materials too! Click here to find out how you can go to school while staying home!
Or how about this idea, do you ever wonder which Canadian cities possess the best potential returns for real estate investors? Are you concerned about finding the cash to continue putting down payments on the investment properties you plan on purchasing?
Click here for just a sample of the in-depth research reports that REIN™ produces to
educate and support investors as they build long-term, sustainable wealth through real estate.
We hope you get great enjoyment and information from these resources this summer!
Sincerely,
Michael Ponte, President & Founder
Prosperity Real Estate Investments
Phone: 604-882-6901
Tags: real estate investing, REIN
Posted in real estate investing | No Comments »
