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Do I Need A Real Estate License To Invest?
You don’t need a real estate license to invest, but does it help? This is a common question from new investors, and although it’s not necessary, it depends on your personal investment goals. You need to look at the pros and cons of getting a real estate license as an investor.
Is Real Estate A Liquid Investment?
As a quick answer, no. Direct real estate is not a liquid investment and is among the least liquid investments you can make due to the amount of time it takes to convert this asset into cash without affecting the price.
Zero Cash-Flow Investments: More Than Nothing
At first glance, a zero cash flow investment might sound like a failure. After all, we invest with the hope of making money, right? Sure, but not every strategy follows the same path, and a zero cash flow investment may offer investors specific opportunities worth pursuing.
Will the U.S. Face Another Foreclosure Crisis in 2020?
Today, it's not uncommon to find articles about a coming wave of foreclosures in 2020, like what we saw in 2008-2009 (i.e., GFC or Great Financial Crisis). These foreclosures may be attributed to COVID-19 and the economic shutdown. Supporters of these dire forecasts often point to parallels between the high unemployment rate and declining economy from 2008-2009 and current events. While the housing market and economy may look similar to the GFC on the surface, it is too soon to conclude that events will transpire in the same way.
COVID-19 Spikes Create Disruptions In State Economic Recovery Patterns
Employment figures have been volatile since the start of the COVID-19 stay-home orders and business closures began unevenly in various jurisdictions in March. From the beginning of the pandemic to May, approximately 30 million Americans had lost their jobs due to the pandemic. At least a third of those jobs have been recovered, although in some cases the work is part-time rather than full-time. According to the Department of Labor, the good news is that the U.S. economy added 1.4 million jobs, and the overall unemployment rate now stands at 8.4%. This compares to 14.4% in April, and a pre-pandemic rate of 3.8% in February.
How Do You Calculate The Rate Of Return On Your Real Estate Investment Before It's Sold?
There are many ways to calculate the return on a real estate investment. Two main categories make up the calculations: holding period return (i.e., buy to sell) and performance metrics (i.e., ongoing basis - property not yet sold). For this article, we’ll go over how to calculate the holding period return using an all-cash transaction and then another with debt financing.
Active vs. Passive Investing - The Key Differences To Know
There are two different ways to generate income — active and passive. One is a time for dollars trade-off while the other is able to generate income without your direct involvement. There are many differences between these two types of income, and choosing one over the other doesn’t mean one is better than the other. Sometimes the choice is a personal preference, and sometimes it's out of necessity. In this article, we’ll go through the differences between these two types of income.
Will The 2020 Pandemic Impact Construction?
In the U.S., 2020 has brought a broad-based decline in commercial real estate due to COVID-19. Any business deemed non-essential has taken the brunt of the slide. Office leasing, retail, and other non-essential companies have seen their revenues dry up — and the astronomical drop in travel has led to the decline in hotels and other hospitality properties. But one area that hasn't completely stopped all activity is construction starts.
Rent Control Regulation: How It Impacts Real Estate Investors
Rent control regulation has become a hot topic of discussion. As it needs to be - housing costs are an election issue in the United States for the first time in years. Rent regulation refers to the establishment of a set percentage by which landlords can increase the rent during the duration of a tenancy. The percentage can be determined by inflation or the cost of living in that area or determined by local regulators. While calls for a federal response have taken precedence, rent control regulations have state and city-specific policies with varying laws. Most states don’t have any laws regarding rent regulation, and some even prohibit rent caps. There are two sides to this coin, but how do these regulations impact real estate investors?
I Want to Optimize My Portfolio for Targeted Risk-Adjusted Returns
As your financial goals change over time, likely so does your investment strategy. We see this as an accepted tenet in stock portfolios' management, exemplified by the retirement target fund. When you are a young investor, you may have more aggressive asset accumulation goals accompanied by higher risk tolerance. The reasoning that supports this approach is that you have time to make up for any losses that you may incur, and you can afford to take greater chances in the pursuit of maximizing potential returns. Accordingly, an age-targeted approach would incline toward growth stocks. As you move closer to the time when you emphasize seeking income from your assets, your choices may shift in the direction of equities that aim to provide dividends. Eventually, as stability upstages growth as a goal, you may swing toward holding bond quality assets.
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