Archive for July, 2007

26 Jul

What are the two most important things a new real estate investor should avoid?

There are many don’ts to avoid when investing in real estate. Some of these don’ts may become the cause of a real estate investment failure. The two don’ts that have the highest probability for causing investment failure are: (1) Don’t buy real estate that has a negative cash flow. (2) Don’t leverage your real estate […]

26 Jul

Is now a good time to do a 1031 exchange?

From an investment viewpoint, the question has no standing. Timing plays no (zero) role for determining the use of a 1031 exchange. A 1031 exchange is a conduit (with certain requirements that must be followed) between the sale and purchase of like property. Section 1031 of the Internal Revenue Code, 26 U.S.C. § 1031 provides […]

17 Jul

Leverage and Its Walking Dead Associates

The current bullish real estate market has resulted in a considerable increase in the net worth of older real estate investors plus a whole new crop of real estate moguls. This proliferation of increased net worth has produced a stream of media stories describing these new real estate moguls, their histories, and methods. As one […]

12 Jul

Which line item expenses should be used to compute NOI?

There are actually two types of NOI:

There is the traditional NOI which determines the tax status of an income property. The definition is as follows: Income after deducting for operating expenses but before deducting for income taxes and interest. It includes all one-time, non-recurring expenses, depreciation, and any other bookkeeping entries. Because these entries don’t […]

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