Inmypreviousposting“benchmarkingcashflow(2)”withthelinkbelow,wediscussedhowtocalculateCapRateorCR%andEquityReturnorER%.
http://blog.wenxuecity.com/myblog/61110/201212/25655.html
Iknowthatthismightbeaboringtopicwithalotoftediouswork.Itcanalsobepainfulespeciallywhenyoureviewsomeofyournon-performingassets.Howeverthisisreallyagoodtooltounderstandhowwellyouaredoingwithyourrealestateassetsandi...[
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Followingtheintroductionofbenchmarkingcashflow(1)withthelinkbelow,wewilldiveintomoredetailsofcalculations.
http://bbs.wenxuecity.com/tzlc/515367.html
Let'sstartwithsomebasictermsfirst:
CB: InitialCost
Basis=(PurchasePrice)+((ClosingCost)–(Loanrelatedcost))
ACB:InitialAdjustCostBasis=CB+(CostforInitial
Improvement)
OE: AnnualOperation
Expenses
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Benchmarkingcashflowofportfolioofrentalpropertieswillhelpyoutracktheoverallperformanceandsummarizingaccountinginformationwithyear-to-yearapple-to-applecomparison.
CapRateorCR%iswidelyusedtomeasureannualperformanceforeachpropertywithoutaconsiderationoffinancingcosts.NotethatCapRateisdifferentfromGIM(GrossIncomeMultiplier)methodsuchas“1%rule”withoutconsideringunderlyingcosts.CapRateisnormalize...[
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Whenyousetupatrustforyourfamily,youneedtoconsiderwhowillbetherightpersontoexecuteyourtrust,manageyourassetanddistributetobeneficiariesaccordingtothetrust.Option1.Yourchildren.Theproblemsarea)Aretheytooyoungtodoso?b)Aretheyreallyresponsibleasyouare?c)Aretheyinterested?Option2.Yourrelatives.Aretheyinyouragegroup?Iftheyaremuchyoungerthanyouandolderthanyourchildren.Thismaynotbeabadoption.Option3.Yourf...[
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SomereferencepostingsregardstoinvestmentinLasVegas.
asof11/28/2012:
LasVegasiswaytogo
http://bbs.wenxuecity.com/tzlc/504345.html
asof12/2/12
LasVegasRealPropertyBouncingBack
http://bbs.wenxuecity.com/tzlc/506200.html
asof12/17/2012:
赌城商用仓库方兴未艾(上)
http://bbs.wenxuecity.com/tzlc/512317.html[
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Thepropertytaxrateimpactsmarginsofyourrentalincome.TherentalincomeisbasedoncaprateorCRpercentagewhichdependsonNOI.NOIisgreatlyaffectedbyoverallpropertytaxrate.Aspropertyinvestors,weworksohardtoincreaseCRratebyeven1%.Buthighpropertytaxratecaneasilyeatsup2%.Thetaxesonpropertyincludebothstatetaxesandlocaltaxes.Thepercentageratementionedearlierismandatorystatewiderate.Ontopofthat,youmayneedtoconsiders...[
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ThereisanotherprogrambesidesHARPsocalled"homeretentionrefinancing".Yourinvestmentpropertymightbeeligibleforthisprogramtoo.Checkwithyourmortgagelendercompany.TheadvantageofRetentionoverHARPisasfollows:1)Applicationprocessisevensimpler.2)NoclosingcostTakethisadvantagetoreducecostoninterestandloweryourmonthlypayment.[
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HARPstandsforHomeAffordableRefinancingProgram.It'sanObama'sprogramhelpinghomeownerswithpropertiesunderwaterstartingMarch2009.AboutTheHomeAffordableRefinanceProgram(HARP2.0):
InOctober2011,the FederalHousingFinanceAgency (FHFA), FannieMae andFreddieMacannouncedenhancementstotheHomeAffordableRefinanceProgramthatmakeiteasierforlenderstorefinanc...[
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Iwouldliketosharesome tipstoaddresscommonlyconcernedissussuchashowtoadvertiserentalpropertiesandselectingonrentingpropertiesbasedonmyyearsofexperience.Ihopethesetipsarehelpfultonewlandlords.
1)CL/Craigslistisok.It'sfreeandeffectiveonlyhighlyeducatedareasuchassurroundingofuniversities,hightechconcentratedsuchasSFBayarea.
2)Localnewspapermaybeeffectiveforsomeremoteareaorsmall...[
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Aspropertyowners,weconstantlyrunintoalldifferentkindsofmaintenanceandrepairrequestsfromthetenant.Ifyoufulfilltheserequests,yougraduallygetyourprofitmargineatenupnomatterhowmuchprofityoumake.Ifyoudon'tcontroltherepaircost,1%rulepropertieswon'tdomuchgoodeither.
Iwanttothrowsomeideaforadiscussiononhowtodividetherepair/maintenanceresponsibilitybetweenLandlordandTenants.Themosttenantsareunderi...[
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