So you have money burning a hole in your pocket and the stock market is not behaving comfortably. Now that the real estate boom has come to an abrupt end in most of the country, it is back to basics for real estate investors. No more standing in line to get a new release condo under contract just to flip the contract on the way out the door.Real Estate Finance: It is all in the numbers.
Real Estate can behave like a bond once it is rented long term. Look at it this way. You invest in a property, which is like buying a bond, and the monthly rental check is similar to a bond coupon. Now the ratio of the price you paid for the property and the rent you receive annually is equal to your yield. If the property cost you $200,000 and you receive a total of $12,000 in rent you would be yielding a 6.00% return. Read More>>
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