What is yield? If you want to invest in real estate, you need to know about yield. It’s the term for the annual income generated by one of your investment properties. Yield is a percentage of the total amount an investment costs or its current value. Why is yield important? Because it measures the future …
What is it: Closing costs are the costs and fees charged to complete a real estate transaction. As the name might imply, the fees are due at closing, which is the finish line of a real estate purchase where ownership changes hands. The buyer is usually responsible for paying closing costs, but depending on the …
As the world evolves and becomes increasingly digitized, investing is changing too. Real estate tokenization and fractional real estate investing are two fairly new investment strategies that leverage new technology. What is real estate tokenization? Tokenization in real estate refers to converting real estate assets into tokens on the blockchain and putting them up for sale. …
Real Estate Tokenization vs. Fractionalization: Which One is Best for Me? Read More »
What is DTCC? The Depository Trust and Clearing Corporation (DTCC) is a U.S.-based financial services company focused on providing clearing and settlement services. It accepts deposits from more than 65 countries. The DTCC was founded in 1999 as a way to merge the Depository Trust Company (DTC) and the National Securities Clearing Corporation (NSCC). As such, …
Sometimes, being a real estate investor is like being a detective. You need to investigate the facts, uncover the truth, and work out the best course of action. If you don’t, you could make a costly mistake. Due diligence means taking care and caution when investing in a new property. That includes carrying out a …
Internal rate of return (IRR) is a financial metric used to predict the profitability of a project or asset. In effect, IRR is a measure of the expected annual return on investment. IRR is calculated by assuming the net present value (NPV) of cash flows is equal to zero and conducting a future cash flow …
In real estate, the debt snowball method refers to utilizing 100 percent of your rental income cash flow to quickly and aggressively pay off your rental property’s mortgage in its entirety. What is the debt snowball method? Essentially, the debt snowball method is an aggressive strategy to pay off credit cards, loans, and consumer debt …
Escalation clauses are fairly straightforward. One of the most significant elements to understand about escalation clauses is that they only go into effect when there are competing offers. What is an escalation clause? Well, in real estate, an escalation clause or “escalator” refers to written language in a contract that states that a buyer is …
What is real estate wholesaling? Real estate wholesaling is a business strategy where an investor or wholesaler contracts a home with a buyer. After making the initial contract, the wholesaler then contracts the home with a new buyer at a higher price than with the seller. The wholesaler then keeps the difference as profit. Real …
Investors who follow the fix and flip strategy are often referred to as “house flippers,” and commonly have a background in carpentry or home improvement. Ultimately, the fix and flip strategy is ideal for investors who are experienced with renovations as this can help them expand their margins and reduce the risks associated with uncovering …
