Our guide to real estate, investing, strategies, and everything in-between.
What is the 1% Rule? The one percent rule (or 1% rule) is a rule of thumb that determines whether an investment property provides value. It calculates if the monthly rent generated from a piece of real estate is higher than its monthly mortgage payment. If the rent is more than the mortgage payment, it means the property …
What is an institutional investor? Here’s the quick definition for an institutional investor: It’s an organization that buys and sells stocks, bonds, other securities, and assets like real estate for organizations and other people. Institutional investors are different from retail investors who buy and sell securities and assets for themselves and make the majority of trades on …
What is tokenization? Tokenization is a process where assets are converted into a digitized format. This includes converting ownerships and rights to a digital form. This technology has been around for several decades to help encrypt sensitive information such as medical records or credit card information. Now, new capabilities provided by blockchain technology are expanding …
What is a safe haven investment? In the wake of the recent economic downturn and market volatility, you may be searching for investments that limit your risk or traditionally perform well despite a fluctuating market. If that sounds like you, safe haven investments may be just what you’re looking for. Safe haven investments are types …
What is an adjustable-rate mortgage? An adjustable-rate mortgage (ARM) is a type of mortgage in which the interest rate on the loan varies with prevailing market rates. This means that, over time, the monthly payment amount may go up or down, depending on the current interest rates set by the Fed. ARMs are often used …
What is a 1031 exchange? A 1031 exchange in real estate allows you to change your investment type without “cashing out” the capital gains. This allows your investments the chance to keep growing without taxes. The 1031 exchange applies across different kinds of real estate, including residential, commercial, industrial, special use, etc., and can be …
What is a turn key property? In the simplest terms, it’s a home that doesn’t need any major repairs or restorations. A tenant can just turn the key in the lock and move straight in. Investors can rent the property immediately after purchasing it. Therefore, a turn key property can sometimes be an extremely lucrative …
What is volatility? In finance, volatility is a measure of the amount of variation in prices over time, and it is used to quantify the risk of an investment. Higher volatility means more risk is associated with the investment, as prices can change rapidly and unpredictably. The different types of volatility There are three types …
What is a catch-up contribution? If you got a late start on saving for retirement, you may be able to “catch up” with something known as a catch-up contribution. Catch-up contributions are types of retirement savings contributions that enable people who are 50 years old or older to make additional contributions to their 401(k) and …
What is a hedge fund? A hedge fund is a type of investment vehicle that allows investors to pool their money together and invest in various assets. These funds are usually used by high-net-worth individuals and institutional investors and can be quite complex. The way hedge funds work is that the fund manager will use …
