As the residential real estate industry changes and you look at the future of your real estate career...for a number of reasons, consider learning more about working with investors, and investing yourself in residential income property.
Cindy Chandler refers to the following as "Resimercial."
Multi-Family and Commercial Real Estate
I. Objectives:
A. Cash Flow - Unless structured with enough down
payment, most properties will not show a positive cash
flow. But as time passes, in the proper market, it will turn
into a positive cash flow.
B. Leverage - Through the use of borrowed money
(OPM), combined with a small amount of money of
your own, you can control large amounts of
property.
C. Appreciation - a function of increasing property
income...V=I x R
D. Tax Benefits - Investors are allowed to write-off all
operating expenses, interest on loans secured by
the property, depreciate the property, and exchange
with little or no immediate tax consequence.
E. Equity Build-up - This results from the periodic
pay down of the principal amount of the loan.
More to come...
