Archive for July, 2006

25 Jul

Should I buy income property with 20% down given a negative cash flow but rising prices?

Your question prompts three other questions that result in three additional answers. The following questions and answers are based on complete due diligence and realistic and accurate evaluations.

Is the negative cash flow projected to increase? If the answer is yes, don’t buy.
Is the negative cash flow projected to remain the same? If the answer is […]

24 Jul

The Housing Bubble That Won’t Happen Nationally or in Santa Clara County

The phrase “housing bubble” is brainwashed onto the American psyche almost daily. A recent Google search for the term “housing bubble” resulted in 8,160,000 links to sites. The recipients of this alleged “bubble” are resident owners and non resident investors of single-family housing including condominiums and cooperatives. The sound bite term“housing bubble” used by the […]

13 Jul

What do you think of long distance income property ownership?

You’re not alone. Qualified Intermediaries all over the country are inviting real estate investors involved in or considering a 1031 exchange to put their funds into a TIC. They’re placing ads in the newspapers. They’re holding seminars. Why do the QIs have all this interest in TIC? Because they stand to make a lot of […]

13 Jul

What is a reasonable gross rent multiplier for income property?

The GRM for an income property is the number of times the income is divided into the price. If the income is $100,000 and the price is $1,000,000, then the GRM is ten times. Of course the first question is what income? Last year’s, the last six months times two, next year’s projection, etc. All […]

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