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How to Evaluate an Industrial Investment Property
There’s no secret formula when it comes to evaluating potential commercial real estate investment properties.
When is Pro Forma Performed by a Real Estate Investor?
Pro Forma is a term that pops up in real estate investing and other business discussions. Regarding real estate, a Pro Forma is typically thought of as a forward-looking estimate of financial opportunity. As a result, many real estate investors review the Pro Forma documentation to analyze the value of a potential acquisition.
What is the Interest Rate on a Reverse Mortgage?
Reverse mortgages are a financial tool that has enjoyed an increase in popularity in recent years. There are at least three good reasons for this surge. First, people are living longer. Even with the impact of the Covid-19 pandemic, Americans are living longer than ever, and that trend is likely to continue. Second, for many people, their residence is their most significant asset. Finally, as the prevalence of defined benefit pensions has declined, more retirees need income to supplement their Social Security benefits and other sources.
Can You Refinance a Fixed Rate Mortgage?
The mortgage industry is volatile at almost any time, whether rates are increasing or falling. When rates are lower, homeowners are more likely to consider refinancing their mortgage loan to take advantage of lower payments. Consumers may be more attracted to adjustable-rate products when the rates rise. CNBC reported that refinancing applications in February 2023 were 76 percent lower than in the same week in 2022.1
What are the Different Kinds of Rental Property Loans?
Your path as a real estate investor may take various routes, depending on your resources and goals. Many people begin when they decide to change their primary residence. Instead of selling their current home when they acquire another, they may repurpose the initial residence into a rental property. Similarly, when your equity in a home increases, you may use that appreciation as a down payment on an investment property. Whether starting from scratch or with a saved down payment, you will probably need financing at some point.
How Are Mortgage Rates Determined?
Your mortgage interest rate can substantially impact your monthly payment and even your ability to qualify for a home or investment loan. You have probably noticed that rates are volatile, increasing from below three percent last year to recent rates of over seven percent for a 30-year fixed loan before settling into the 6.5 percent range. By comparison, back in the early 1980s, mortgage rates hit 18 percent.
What Does it Mean When a Property Is Under Contract?
When a property is listed for sale, potential buyers make an offer with their best price and any contingencies. If the seller accepts the offer, the property is considered “under contract.” The buyer and seller are now in a legally binding agreement.
What is an Operating Expense Ratio (OER)?
Operating Expense Ratio (OER) is a financial metric used to evaluate the operational efficiency of a business. It measures the proportion of operating expenses incurred by a company in relation to its revenue.
What is Effective Interest Rate?
The effective interest rate (EIR) is what you might call the practical rate or the rate that you'll pay on borrowed money. A bank or auto loan lender might quote different types of interest rates. But only the effective interest rate really matters to your wallet and helps you make an informed decision about purchases (when purchasing with a loan). It also provides an easy method for comparing different loan rates.
How to Get a Wholesale Property Under Contract?
Novice and even experienced real estate investors know that completing real estate transactions is often a complicated process – and that’s not even taking into account the capital that’s required to acquire or secure financing for commercial and residential investment properties.
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