Comments on: The $7million Real-Estate Rule

By: Adrian

Adrian — Sat, 11 Apr 2009 01:49:52 +0000

@ Brandon – Yes, if you buy a property with a higher cap. rate (expressed as a %) then that means that you are getting a better return on your (unleveraged) money, e.g. an 8% ‘return’ v a 6% ‘return’. It works in reverse if you express the cap. rate as the # times NOI is returned … but, I admit this a less common usage of the term so I have amended the offending statement slightly. Thanks for pointing this out

By: Brandon

Brandon — Fri, 10 Apr 2009 21:36:59 +0000

Just FYI, the cap rate figures are wrong in this post. Cap rate=NOI/Purchase price. It’s simply your return if there was no leverage involved. Buy a property for $1m that generates $80k NOI, then it’s an 8% CAP. Higher caps are better for buyers and worse for sellers, you said it backwards.

By: AJC

AJC — Tue, 24 Jun 2008 03:29:54 +0000

@ Jeremy – it seems you already know the most important piece of investing advice – real-estate or otherwise – that I can give you:

“I also spent the weekend figuring out how to convince my wife to buy into this plan” … good luck with THAT

By: Jeremy W

Jeremy W — Mon, 23 Jun 2008 20:04:46 +0000

Ok AJC, I’ve talked with my mortgage broker and he said he could get me in with a 10% down on an investment property. I have looked at almost every listing in my are and have found a few potential properties, I have even gone out and walked by my top pick properties. I will probably have enough saved for a down payment within 2 months. I also spent the weekend figuring out how to convince my wife to buy into this plan. I live in a college town which will make finding renters a little eaiser. You’ve got me excited about this next step in my investment portfolio…is it time for another Real Estate post yet?

By: A Few Articles of Interest | Fiscal Musings

A Few Articles of Interest | Fiscal Musings — Fri, 13 Jun 2008 02:42:07 +0000

[...] interest in real estate, I found these two articles informative. I’ll call them number 1 and number 2. They’re both from the same blog and someone who has made a lot of money in real [...]

By: AJC

AJC — Fri, 13 Jun 2008 02:29:45 +0000

@ Andrew – it was a key plank of my $7million7year journey … although, I will talk about commercial real-estate as a Making Money 301 (wealth preservation strategy) in a future post. The key difference will be how much equity you hold …

By: Andrew

Andrew — Fri, 13 Jun 2008 01:54:15 +0000

With how long it takes to make money in commercial real estate starting from scratch isn’t this really more of a wealth 301 strategy rather than a 201 one?

By: AJC

AJC — Thu, 12 Jun 2008 22:32:40 +0000

@ Jeremy – when you do, let me know what you think

@ Adam – you gotta get out more But, thanks!

@ Jon – You won’t get any argument from me re ‘buy and hold’. Thanks.

By: Jon Christopher

Jon Christopher — Thu, 12 Jun 2008 21:18:17 +0000

The buy and hold strategy is ideal right now if you can afford a loan. Many loan programs for investors or for second residences have dried up or become too unreasonable. Overall it is still the best strategy for building long term wealth.

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By: Adam Crain

Adam Crain — Thu, 12 Jun 2008 17:43:10 +0000

Fantastic intro to commercial real estate.