The Realized Team’s Picks
What Is a Real Estate Mutual Fund?
Mention the term “real estate investment,” and what might come to mind is a direct investment. This means you directly own that physical property. You’re also the landlord, with hands-on duties when it comes to the successful functioning of that physical property (not to mention the satisfaction of your tenants).
How to Relinquish Rights to a Property
There are a few different ways to relinquish or transfer rights of ownership to real property.
What Is Equity Risk Premium and How Do You Calculate It?
Investing is always linked to the risk of losing your investment capital – the cryptocurrency crash of May 2022 and ensuing collapse of the Luna coin from $119 in early April to a mere eighth of a penny just over a month later is a painfully clear example of how billions of dollars of investment capital can be vaporized.¹
Does Income From a Rental Property Count Against Social Security?
Officially known as the federal Old-Age, Survivors and Disability Insurance program, Social Security is in place to help U.S. citizens replace income lost due to retirement, death of a spouse (or qualifying ex-spouse), or disability. According to the U.S. Social Security Administration (SSA), nine out of 10 people age 65 and older received Social Security benefits in 2020. Additionally, such benefits represent 30% of the income of the elderly.
What Is the 70% Rule in Real Estate Investing?
Investors often use the 70 percent rule when calculating the maximum purchase price they are willing to pay for a property that needs repair and improvements. Seventy percent is the amount of the ARV (after repair value) that an investor may be willing to spend to acquire a property. But the formula also subtracts the cost of needed repairs from the 70 percent of the calculated ARV. It sounds complex, but it is relatively straightforward:
What Is Negative Leverage in Real Estate?
Real estate investors often use debt to finance their endeavors. This allows the investor to put up less money in acquiring a property. The use of debt by the investor is called leverage. Basically, the investor is granted buying power through a loan. It’s money the investor would not otherwise have.
What Is Net Operating Income on a Rental Property?
If you google the term “metrics used for rental properties,” the 54 million results offer a plethora of acronyms and phrases, presented as thought leadership articles and blogs in the format of “Top-10” listicles or “important metrics” information..
What Is Capital Risk and How Do You Calculate It?
When deciding to invest funds into a risky (and hopefully high return) endeavor, one of the first decisions is how much money should be invested. It’s another way of asking how much money I want to lose if the venture goes south.
What Is the Difference Between a Triple Net (NNN) and a Full Service Lease?
As an investor in commercial real estate, you know that ownership is never risk-free or without effort required. There is typically significant effort necessary to manage your properties, even if you engage professional assistance. Still, some assets are more labor-intense than others, and the type of lease you use can make a big difference. Let's look at the difference between a triple net (NNN) lease and a full-service lease and how the choice can affect you.
Is Foundation Repair Tax Deductible on a Rental Property?
We’ve mentioned in previous blogs that investment in real estate—specifically, real estate that you buy as an investment and rent to others—comes with a plethora of deductions that can be used to offset income reported on your annual tax return.
