Wed, 27 June 2018
176: How To Avoid Overpaying For Income Property, How To Value Property, Using Your IRA and 401(k) For Real Estate
#176: Stock investors are not getting ahead, but they think that they are. 10% return, minus 5% inflation, minus 2% fees, minus taxes, minus volatility, minus more.
Most methods of valuing an income property are lousy. I tell you the good and the bad methods: price per square foot, price per unit, RV ratio, Gross Rent Multiplier, Cap Rate, Cash-On-Cash Return.
I tell you how to avoid overpaying for property by making your offer contingent on seeing the seller’s “Schedule E”.
The bustling Charlotte, North Carolina real estate market is discussed. It is growing at an enormously fast rate.
Learn about using IRAs and 401(k)s for buying real estate, and leverage vs. paying all-cash for property.
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Listen to this week’s show and learn:
01:06 Why stock investors aren’t getting ahead.
04:17 Real estate performs.
06:27 Mortgage interest rates are up, Fed Chair change.
07:26 How to avoid overpaying for property.
09:50 Income, expense, and financing gears.
10:03 Price per square foot, price per unit, RV ratio, Gross Rent Multiplier.
11:49 Cap Rate vs. Cash-On-Cash Return.
17:35 Avoid overpaying with Schedule E.
22:45 Charlotte, North Carolina’s rapid growth.
25:12 More appreciation, less cash flow.
29:11 Typical property is an SFHs, $100K-$120K rents $1,000+.
31:02 Using IRAs and 401(k)s to buy real estate.
35:08 Leverage vs. paying all-cash.