Archive for investments Chicago
How To Find The Safe High Return Investments Chicago Has To Offer
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Safe High Return Investments Chicago
Want To Earn Higher Returns On Your Investments? Welcome to Safe High Return Investments Chicago.
If you’re like most investors today, you’re probably pretty frustrated about the returns you’re getting on your investments lately. That’s why I created this site. Like you, I was tired of the low returns I was getting om traditional investments like certificates of deposit (CDs), money markets or even short term commercial paper.
There Are Lots Of Ways To Earn More On Your Money Than Banks Are Currently Paying
So, I set out to find out about other investments that could offer me the potential to earn a higher rate of return than those typical bank investments were paying. What I found is that there are lots of other investments out there that pay high returns, including real estate, private lending, the stock market, mutual funds and even commodities, options and more.
High Returns Are Great, But What About Risk and Safety?
While I wanted to earn a high rate of return on my money, I also wanted to be sure that I wasn’t getting into something risky. After all, we work hard to save money and the last thing we want is to invest it in something and lose it. Well, after quite a bit of investigating, I finally found a way to earn an above average rate of return on my money, while at the same time having more than just a piece of paper (like a stock or bond) to back it up.
Let’s face it, we all learned our lessons with the Enron debacle. You can have all the stock experts saying something is safe and a good investment, but the bottom line is that your fate is completely dependent on something you don’t understand at all or have any control over. I mean, how many Enron investors understood energy grids and offshore swaps and all the other complicated stuff those guys were doing?
Private Lending, Joint Ventures & Real Estate Investing Can Offer Both Safety And High Returns
What I found is that real estate investing, either as a financial partner with an experienced real estate investor, or private money loans where you loan money to someone who is investing in real estate, and then you secure your loan with the property the real estate investor is buying, can actually offer a high return on your investment, plus the security of a lien on the property that is being purchased.
That way, if the loan can’t be paid back, or if things don’t work out with the real estate investor’s deal, you at least have that property that you can sell and get your money back. You can get additional protection on this type of investment by insisting on title insurance (to ensure that you are covered in the event of any ownership disputes involving the property) and casualty insurance (to ensure that you are covered in the event that something happens to the property like a fire).
Get Your Free Report On The Safe High Return Investments Chicago Has To Offer
This site is designed to share with you my experiences in using real estate investing, joint ventures and private lending to earn more with safe high return investments in Chicago, and to help you maximize your return on investing. I’ve also gathered information here for you on other high return investments, some safe and some more risky, just so you can see as many of the different options as I can find to share.
I’ll include case studies and other information as I find and experience them. I invite you to join me in sharing investing ideas and information about investing, and I hope you’ll let me send you my FREE Special Report on how to double or triple the returns that banks are paying. It’s a great read and filled with a lot of valuable information you can start using right away to improve your returns and investing options.
Contact Me
David Hampton. Call me at (630) 717-5993 or click here to e-mail me now
www.SafeHighReturnInvestmentsChicago.com.com
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Does Cap Rate or Gross Rent Multiplier Best Evaluate Property Value?
Posted by: | CommentsBy jamesrk
Cap rate and gross rent multiplier are each a method of measurement commonly used by real estate investors and agents to evaluate the price of investment real estate in order to determine whether it is, or is not, priced correctly and therefore offers a good investment opportunity.
For example. Whereas some agents and investors, having researched what other similar properties have sold for, use the cap rate method to determine and set a price for rental properties, others rely on the gross rent multiplier (or GRM) method.
So which is better? At the end of the day, which method used to estimate a property’s value is the better measurement of a property’s financial performance and more likely to lead to a smart investment decision?
Let’s consider both, and then decide.
Capitalization Rate
This rate provides a relationship measurement between a rental property’s net operating income (or NOI) and sale price. Expressed as a percentage, cap rate reveals what percent of the price is attributable to net operating income, and as a rule of thumb, whether a property generates enough income to pay its own way.
Here’s the idea. Because net operating income represents all income less operating expenses, NOI indicates the amount of money produced by the property available to pay the mortgage. This is the reason why lenders look closely at the property’s net operating income when making a loan.
The formula is straightforward: To arrive at its value, you simply multiply a property’s NOI by whatever cap rate you feel best reflects the rate in your market area. For example, if similar properties are selling at a 6.0% cap rate, then multiply the subject property’s net operating income by 6.0 to determine its market value.
The disadvantage of this method (if you can call it a disadvantage) is that it’s sometimes difficult to confirm a sold property’s actual operating expenses and therefore to determine the actual (not merely the published) capitalization rate it sold for. A good work-around is to get the market rate from a local appraiser.
As a rule of thumb, because it depends on individual market areas, there is no such thing as a universal capitalization rate. What might make a rental income property a steal in one city or state at 6%, might not get a second look in another.
Gross Rent Multiplier
The GRM method (expressed as a number) measures the ratio between a rental property’s gross scheduled income (GSI) and its price.
The advantage of this method is that you can compute GRM in your head. You just divide the property’s selling price by its gross scheduled income.
For example, if a property with $200,000 gross scheduled income sells for $1,000,000, it would have sold at a gross rent multiplier of 5.0 ($1,000,000 / 200,000).
Conversely, to arrive at a property’s value using this method, you simply multiply its GSI by whatever GRM you determine is appropriate for your market area (say it is 5.0): $200,000 x 5.0 = $1,000,000.
Nonetheless, though it is easy to compute, the disadvantage of using this method is that gross scheduled income does not account for occupancy levels and operating expenses (both of which are important indicators of a rental property’s overall performance).
There is no universally correct number because it, too, is market driven. However, as a rule of thumb, you might want to become suspicious if you see a GRM lower than 4 or higher than 12.
Okay, so which method is the best way to arrive at investment real estate value?
Gross rent multiplier is certainly the easier method to calculate, and does serve as a useful precursor to a serious property analysis, but analysts would agree that the more reliable way to determine rental property value is with the cap rate method. Fair enough.
But never rely on capitalization rate alone to provide a true picture of a property’s profitability or to make a real estate investment decision. Always correctly compute all the numbers, rates of return, and cash flow scenarios for yourself.
Remember that numbers can be manipulated. When you are being told how great a buy an income property is based upon its cap rate, always reconstruct your own raw data to insure that all is revealed and nothing is concealed before you actively pursue the real estate investment further.
James Kobzeff is the developer of ProAPOD – leading real estate agent software solutions since 2000. Create rental property cash flow analysis and marketing presentations in minutes! Go to => www.proapod.com
Are You Having Trouble Selling Your Home?
Posted by: | CommentsBy Richard Hewitt
When you sell your home, the process is almost like going to a job interview. Selling a home involves presentation, which is one of the key factors that determine the outcome. Although this may sound a bit weird, presentation is a way of life in the world of real estate. Buyers in today’s market look for good presentation – many basing their final decisions on it.
If the property you are selling comes with a garage, you’ll need to go through your garage before you sell your home. Chances are that you store things in your garage, which can easily pile up over time before you realize it. If your garage is in a messy condition, you’ll obviously want to clean it up. Buyers look for homes that are in perfect condition, and anything less than perfect will look bad in the eyes of the buyer.
Most homes have some truly outstanding features inside of them. You should always do your best to highlight the best features of your home, instead of just hoping that the buyer understands what they are. The ideal way to bring out the best features of your home is to use the proper lighting. If your home is clean, you can use lighting to bring out the best features in your home, and ensure that they stand out to the buyer.
When a potential buyer first pulls up to your home; the first thing he will see is your lawn. If your lawn is trimmed and well taken care of, he will get a good impression right off the bat. If your lawn is a wreck, he may immediately pull away. To give the best impression to the buyer, you should put some thought into how things look. You can always plant flowers around the walkway and throughout the yard, which will look great to a potential buyer.
You should also make sure that the entrance into your home is a positive as well. The front door should be in great shape, as well as the entry area into the home. You can add some plants, paintings, and rugs to ensure that your buyer gets a good impression. When the buyer walks through the entry way into your home, you should make sure that the view he or she takes in is a good on. Your biggest goal when showing your home is to ensure that the buyer is pleased.
Keep in mind that it may take some time to sell your home. These days, homes can sit on the market for months at a time before they actually sell. If you are having trouble selling your home, you can always reduce the price or simply go back to the basics. Eventually you will sell your home – although it may take more time than you think.
For tips on grand opening ideas, grilling filet mignon and other information, visit the Knowledge Galaxy website.
Software For Investing In Real Estate
Posted by: | CommentsBy Brian Nelso
If you are investing in real estate, real estate investment software is an helpful instrument in their acquisition, lease and sell analysis. Real estate software gives the investor a plain awareness of their deal, financing and return options, and is valuable in predicting a moderately correct return on investment. When the investor chooses the correct software, the investor can use the real estate software to establish cash flows, net present value, income, and most other investment ratios. If the software contains a sensitivity analysis, may also assess multiple scenarios to find the optimal purchase and financing structure to maximize the investment and profit
Many of the real estate software programs contain inclusive financial outputs including: tax calculations, income statements, cash flow statements and even investment ratios. Software is fantastic for adding in company disbursements and even helps clarify capital gains. Generally, these resources help the real estate investor determine the best method to make the most of their return on investment for a certain property.
If you are familiar at all with investing in real estate, you will see that many software programs submit comparable data Depending on your level of experience, the data returned from numerous software packages can be much more inclusive than needed. It is good nevertheless to possess access to the further extensive calculations; especially if you are working with a bank or partners who want supplementary economic information.
For more extensive investors, you may want to use a calculator that does both residential and commercial analysis. It is critical to understand that the two types of investment are very dissimilar animals, but with the right tools, the calculations can be effortless.
If your target investments are residential or commercial, a good real estate investment software program can aid you to maximize your return on investment and minimize your costs.
If you would like to download your own free copy of our award winning IP Ware real estate investment software, stop by our real estate software site and get your on the house copy. Each copy gives the resources needed to invest in residential or commercials investment property
commercial real estate statistics
Sources For Finding REO Properties To Buy
Posted by: | CommentsHere are several great resources for finding REO properties to buy.. Happy hunting!
PremiereREO.com – Wells Fargo REO listings
HomeSteps.com Freddie Mac REO listings
Fannie Mae REO listings
Bank of America REO listings
Chase REO listings
US Bank REO listings
Countrywide REO listings
IndyMac Bank REO listings
M&T Bank REO listings