Investment Property
In deciding to purchase an investment property, there are many considerations. But perhaps none more important than the bottom line. Unlike the purchase of your primary residence, the idea behind an investment property is that it will generate income and be incorporated into your investment or retirement portfolio. So how do you know if the acquisition of an investment property is right for you?
Since each investor generally has unique financial goals, capital, and involvement tolerance, this is a complex conversation. However, this is an area of expertise where I excel. Not only have I worked with dozens of local investors with tremendous success, my wife and I are also investors ourselves. In many instances I am able to account a rather conservative formula constantly outperforming most alternative investment options.
If purchasing investment Real Estate has ever been a consideration, I would be delighted to sit down and discuss the ins and outs of this process. Perhaps most importantly, I can provide real examples unique to our local market. Coupled with the tax write offs, low interest rates, and incredible opportunities available, the timing could not be better to make an acquisition.
Please give me a call today if you wish to further this conversation.
Commonly Used Investment Terminology
Cap Rates: The percentage (acceptable to an average buyer) used to determine the value of income property through capitalization. This percentage is generally ascertained by comparing the property to those of similar nature that have recently sold within the same market.
Gross Rent Multiplier: A methodology to determine a likely value amongst similar investment properties. This is determined by taking a sales price and dividing it by the monthly gross rent. This number can then by multiplied against gross rents of similar available investments to determine value. Most commonly, this method is used on residential properties of four units or less.
Cash-On-Cash Return: The amount of cash received compared to the amount of cash invested. A true gauge of how hard one's money is working.
Ryan Therrell

