by kramoltz@hotmail.com | May 14, 2019 | Real Estate Facts & Figures
Capitalization. When evaluating the worth of an income property based on the value of the income produced, a capitalization rate is applied to the net income. A “Cap” rate is determined by a study of various economic factors, including the returns on other...
by kramoltz@hotmail.com | Apr 8, 2019 | Real Estate Facts & Figures
Present Value. A fundamental concept in real estate investing is that a dollar today is worth more than a dollar in the future. Therefore a “discount rate” is used to determine the present value of an income stream. In computing the present value of a...
by kramoltz@hotmail.com | Mar 5, 2019 | Real Estate Facts & Figures
The return on investment in income property is tied to two basic economic components: the annual net income it produces, plus the proceeds of refinancing or sale. Therefore the total return on a real property asset is a combination of annual returns and the final...
by kramoltz@hotmail.com | Dec 18, 2018 | Home Ownership, Renters and Renting
The net worth of a homeowner is on average over 44 times greater than that of a renter. One way to look at it is that home ownership works as a form of forced savings. Every time home owners pay their mortgage, they are contributing to their net worth by increasing...
by kramoltz@hotmail.com | Jun 20, 2018 | Taxes
Want to pay less tax on your real estate investments? A new community redevelopment program for economically distressed communities called Qualified Opportunity Zones (QOZs) offers significant tax benefits. One of the incentives works like a 1031 exchange, allowing a...
