RE-160 Lecture Notes - Lecture 19: Financial Adviser, Cash Flow, Astronomy Picture Of The Day
22 Dec 2020
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Create a business plan (informal is ok for smaller transactions) Consult an investment advisor re: costs and benefits and risk. Consult cpa re: taxes at purchase, hold & disposition. Compare properties to find properties that are in play". Step 1 - set up a team. Fannie/freddie (no condos, manufactured homes, or commercial properties) Small business administration sba (no residential) What to include in a buy" signal for real estate. Current return on investment (roi) compared to other investments. Opportunity cost of capital (leveraged & non- leveraged) Potential for cash flow maintenance or growth - largely determined by trends in: Area space market (vacancies, new construction, etc. ) Buy for cash all in generates cash flow immediately. Referrals find a property that you can receive a. Flipper buy the property, mark it up and sell it without any improvements. Fix and flip buy a property, fix it up, mark it up, and put it back on the market.
