We respect your email privacy


How Much Is Your Property Actually Worth?

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

Michael Ponte, President & Founder

Prosperity Real Estate Investments

Phone: 604-882-6901


Adapting to The Market

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. žWork 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. ž  Treat your real estate as a business and adapt to ensure your business is profitable.

Market Aug 13

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

Michael Ponte, President & Founder

Prosperity Real Estate Investments

Phone: 604-882-6901


Increase Cash Flow in your Real Estate Business

July 27th, 2012

I’m often asked, “Mike how do I increase my cash flow on my property (or properties)?”

Here are two methods I can offer you to help improve your cash flow!


1. Have a Competent Management Team

The #1 Reason a property struggles is because of poor management.

Is it time to Hire a property manager, or perhaps Fire a property manager? If things aren’t being run properly you SHOULD know and make decisions accordingly.

Run your Property as a Business. Review the income statement and look for issues.

Is property generating proper rent? The better you run you’re business, the stronger the investments will be.

2. Reducing Expenses / Costs

Look at your current mortgage rate and term for savings.

Challenging your property taxes to reassess if you believe the value is to high.

Renegotiate terms with your property manager to have his fee reduced for a term commitment.

Have tenants pay utilities instead of incurring this expense every month.

Have a contractor as part of your team instead of property manager contractor. Instead of having your property manager hire someone to fix things (and obviously up-charge you) have a contractor on your speed dial to take care of those things directly!

These are money saving tips that could add up to big dollar amounts at the end of every year.

For more information on how to run a successful real estate investing business please don’t hesitate to contact me either by email, or give me a call at 604-882-6901.

Sincerely,

Michael Ponte

Michael Ponte, President & Founder

Prosperity Real Estate Investments

Phone: 604-882-6901