Positive Cash Flow Real Estate Investments are the safest way to invest in Real Estate. Sure you can go for the Big Kahuna development site but if you don’t have deep pockets to weather financial storms, you could be destined for a bad real estate deal. Cash flow real estate is beautiful because you have tenants creating equity for you by paying down the principle of your mortgage. Investors use cap rates to measure the potential rate of return for their real estate investments. This is done by looking at the Net Operating Income of an asset divided by the value. The higher the cap rate typically the higher the risk. An investor may say I need an 8% cap on my investment. Different markets have different cap rates for similar investment vehicles. What is constant however is that residential tenancies offer less risk than commercial tenancies. Imagine a 10 unit apartment block, if there is 1 vacancy it doesn’t sting to bad. Imagine having a commercial building sit vacant for a year because there are no suitors for the space. This is why we believe it’s important to build equity with residential tenancies because it allows you to build the foundation for other investments. If you’re interested in Investment Real Estate, contact our office today.
The Concious Investor
Here is what you can expect:
• An Investment Property Watch sent monthly. Hand selected properties with Pro Forma analysis.
• Monthly market updates with an Investor's Corner designed to make you a better Real Estate Investor.
• A Real Estate Investment Network including JV partners, Investors, Lenders & other Real Estate professionals.