Real Estate Investment Series | Knowing Your Numbers
In the video above, Garry and Jennifer discuss the second installment of the Real Estate Investment Series | Knowing Your Numbers.
In this video series we will discuss the things you MUST know before investing in Real Estate.
In the first installment of the Real Estate Investment Series | Why Invest, we discussed why you should invest in real estate and what benefits it holds.
The reason to invest in real estate was simple, to earn money that can create a passive income to live a good life and enjoy financial freedom. For a replay of this video, click here!
One of the most important things before investing in Real Estate is knowing your numbers.
In this video we will discuss exactly what you need to know in order to make a sound investment that will continue to be beneficial down the road.
#1 | You need to make your money on the buy. We can't control the market, so when you go to sell years down the road there is no guarantee that is where you'll make your money. However, you can get a good deal now based on todays market and make that money on the buy!
#2 | You must have a detailed spreadsheet that will allow you to take every investment property, put it through the spreadsheet, and see the rate of return in order to determine if it is a good buy.
There are some important factors you should add to your spreadsheet. Those include; cashflow, revenue, reserves you have for repairs, vacancy rates, and deposits. It is very important to have a spreadsheet created that will allow you to qualify each property before you buy!
Check out the Cashflow and Cash-on-Cash spreadsheet example we give all of our clients in the video above!
#3 | You must have the specific and current data of how the market is performing, sales rates, lease rates, and vacancy rates.
To Recap: In order to make sure a sound investment that will continue to be beneficial in the long run, you should know every single number about the investment market, properties, and submarket, before you buy!
If you are interested in investing in Real Estate or need some help discerning if this is the right step for you, contact us today for a free private consultation! Call us at 512-817-4589 or send us an email at [email protected]!
Want a copy of the Cashflow and Cash-on-Cash calculator we give all of our clients? Contact us today at [email protected]!