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Investment in real estate has grown in popularity
in the past decade. It can be a powerful investment tool for
building long-term wealth. However, investing
in real estate does not automatically mean easy
riches and profits, and caution has to be exercised before
plunging into the market.
Make sure that you never purchase a property
just because it has tons of equity. Try to analyze a real
estate deal based on more than just equity. Investors should
always use Net Operating Income, because it is the only true
way of determining whether you can afford to pay for a house.
Steps for calculating Net Operating
Income for a property:
First, determine what the market rent is.
Subtract out an allowance for vacancies in
order to get the Net Rent.
Add all the expenses including insurance,
taxes, a reasonable maintenance estimate and HOA utilities,
except your mortgage payment.
Subtract the added expenses from the Net
Rent, and the remainder you get after subtracting the expenses
except the mortgage payment or debt, is what is called Net
Operating Income.
This will tell you just how much debt the
property can really afford. If you get to know the rate of
interest you get a loan on and the duration, then you can
plug in the Net Operating Income as the payment, and a good
financial calculator can tell you how much you can afford
to pay for the property.
Real
Estate Investing
has never been easier, than with the folks at RealNet
USA with over 25 years of experience in the Real Estate
Investments industry. Our unique 4-step program helps
you Find, Fund, Fix, and Sell
your Real Estate Investments.
Our pledge is to help
you enjoy the most advantageous returns on all your
Real
Estate Investing properties. Our
first-rate reputation and extensive experience translates
into a wealth of Real Estate Investing resources at
your fingertips – all day, everyday.
Our Advantage Is Your
Advantage!
RealNet USA’s
widespread listings, of Hot deals across 6 states,
display the acquisition price and the estimated resale
value (“after Rehab value”) once renovations
are complete. All properties are estimated by our
expert licensed.
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Then make an offer from your side to the seller
and show him/her the real expenses for the property, and what
your rent expectations are. Do not make offers at 70% of value
of the property without being able to justify the price. However,
when you make an offer based on Net Operating Income then
you can show any seller why it is that you can pay only your
price.
The truth about equity in real
estate investment:
There are chances of losing your hard earned
money in real estate no matter how experienced you are. Your
true wealth cannot be determined based on how much real estate
you own. Equity is just paper wealth.
You can be rich on paper but you may not
be rich in cash. However, you can always convert the equity
into cash by selling the property, placing a new loan on the
property, or by keeping the equity as a collateral.
Despite all this, you may not get back the
amount you expect. If you create notes on your property and
get more equity then it will entail more problems, as it will
increase the monthly liabilities. Real estate equity might
mean dead equity.
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Get
your Real Estate Investment today with
little or no money down when you use RealNet
USA’s
real estate services and take advantage
of our expertise. We have a large selection of Real
Estate Investing Opportunities in 15 major
cities. Our licensed Realtors will ensure that you get
the most out of your Real Estate Investing
opportunities.
RealNet USA listings are properties
across America that owners needed to get rid of quickly,
due to relocation, inheritance, foreclosure, debt problems,
health problems, or retirement. In most cases owners
could not make the necessary renovations and repairs
required to sell their house in other markets due to
health or financial reasons.
Regardless
of how or why the properties came to RealNet
USA, our reputation for fairness and ethical
dealings have won us the confidence and trust of homeowner’s
across America. They are always grateful to save the
time, trouble, and money that come with traditional
ways of selling their home. |
It is advisable to be
aware of the problems in real estate investment that can lead
to heavy losses. Improving and reselling the property for
gain, or renting it out in a cash flow method, accumulates
profit in this form of investment. Thus, it takes a lot of
hard work to make money out of your investment. Being aware
of the pros and cons of this form of investment is the first
step in the right direction.
Real
Estate Investing Is Easy With RealNet USA
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