Small real estate investors should be very proud of themselves. They are the purest form of real estate investor. They’re not waylaid generating acquisition, asset management, property management, or brokerage fees. Their single exclusive focus is appreciation. That’s why most small real estate investors (who know what they’re doing) outperform the big institutional real estate […]

Because amortizing mortgages begin with minimal principal pay downs and increase over the term of the mortgage, there is little advantage to the mortgagor in the early years of an amortizing mortgage. Given a 6% interest rate and 30-year amortization, the principal pay down for a three-to-five year would be in the 4% to 7% […]

Timing is not the requisite for deciding whether or not to refinance. The property’s financial ability to support the new debt is the determinant. If the refinancing creates negative cash flow or onerous restrictions or maturities that conflict with planned rental increases or sales goals, it’s probably not a good idea to refinance. Because funds […]

All investments have their breaking point. It happens when the risks become greater than the rewards. Some investors believe that will never happen for income property. Those people usually think that way because they (1) are not investing their own money, and/or (2) don’t understand that income property is cyclical. This type of thinking usually […]