The Realized Team’s Picks
What Is After Repair Value (ARV), and How Is It Calculated?
%20and%20how%20is%20it%20calculated%3F-1282631484.jpg?width=750&height=392&name=What%20is%20after%20repair%20value%20(ARV)%20and%20how%20is%20it%20calculated%3F-1282631484.jpg)
The After Repair Value (ARV) is the estimated value of a property after repairs, remodeling, or improvements are completed. Determining the ARV of a property is one component in deciding whether it’s a good investment. If the potential acquisition has a significantly greater ARV (customarily at least 25 percent) than the cost of buying, holding, repairing, and selling it, then it makes sense.
What Is Longevity Risk and How Can You Mitigate It?
Every so often, the media will announce that Americans are living longer than ever before. It’s true that recent headlines report shorter life spans because of COVID-19. But over the very long term (i.e., a 50-100 year big picture), people are living longer, thanks to improvements in medicines, medical technologies, and lifestyle choices.
What Does a Property Manager Do?
Investing in real estate is an effective method of building wealth and expanding your estate. Despite the many benefits derived from real estate investments, maintaining the property requires ample amounts of time and attention. If you invest in a rental property, you may be tasked with searching for the right tenants, collecting rent payments, and making sure that the building is properly maintained. If you don't have the time to manage your own property, you could hire a property manager to take care of these tasks for you.
How Are Bonds Affected by Inflation Risk?
If you’ve been paying attention to recent business and financial headlines recently, you know that we’re living in inflationary times. The Bureau of Labor Statistics releases a monthly Consumer Price Index (CPI), an indicator of inflation. The April 2022 numbers showed that the index increased by 8.5% from the year before. In other words, people are paying 8.5% more these days for baskets of consumer goods and services.
What Is Foreign Investment Risk?
When Russia invaded Ukraine on February 24, 2022, the United States, European Union, and other countries announced sanctions on Russia. These sanctions ranged from banning investments in and exports to Russia, sanctioning the Russian central bank and freezing assets of high-ranking political officials. This, in turn, drove Russia to impose its own economic sanctions and measures on foreign investors with assets and capital in the country. All of this, in conjunction with Russia’s shuttered stock market and the ruble’s collapse, has harmed foreign investors with exposure to Russian assets.
What is Concentration Risk and How Can You Mitigate It?
Putting all your eggs in one basket speaks to the essence of concentration risk.
What Is Regulatory Risk and How Can I Mitigate It?
Changes in federal, state, or local regulations by governing bodies can negatively impact many sectors of business, financial securities, or the stock market. These changes could lead to higher costs of doing business, unfavorable tax environments, or even unhinge an industry’s entire business model.
What Is the 5% Rule in Real Estate Investing?
There are many ways to slice and dice the rent vs. homeowner debate. You can spend lots of time on various calculations and weighing pros/cons only to be left with no decision. But for those who aren’t as familiar with real estate, where do you even begin this debate?
What Is a Registered Representative?
As an investor, you may be confident in your financial acumen and comfortable executing your investing strategy. On the other hand, you may prefer to incorporate the input of a professional investment advisor to a greater or lesser degree, depending on the situation. Circumstances and strategies may change over time, and the investor’s need for professional support may also differ at various stages. Therefore, it's helpful to understand the options available and the differences between the professional advisors you can choose from.
What Are Real Estate Appraisals and How Do They Work?
If you have ever bought a commercial property or even a home to live in, you have probably experienced the anxiety of waiting for the appraisal value report. An appraisal estimates a property's fair market value and is made by someone qualified to do so because of their knowledge and expertise. You might need an appraisal for tax purposes, gain mortgage approval, qualify for insurance, or determine a sales price.
