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My Real Estate Tip

Real Estate Investing

You find an investment property. Now what information will you need to make an informed decision? One investor tool is to look at a detailed before-tax and after-tax assessment of the property's projected yield. To estimate projected yield, know the following: your current tax bracket (ask your accountant); your current savings rate; minimum years you intend to hold the property; the amount of cash you intend to put down; appreciation rates; and the approximate rental income. Now use the power of leverage for your investment by utilizing a loan on the property and reducing the amount of your own money for the downpayment. When you leverage, your rate of return is increased.

Let's say you purchase a property for $100,000 cash and it goes up 5%. You will have earned 5% on your money plus the amount of rent collected (less expenses). However if you purchased the property with 10% downpayment and a $90,000 loan, your rate of return will be 10 times greater or 50%.

Having numbers that support your real estate investment goals will make the difference on your deciding which property best suits your objectives.

Contact Nikki direct at 808-372-5543 or email: nikki@nikkiorourke.com

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In today's market, you need the professional who "gets" a client's unique situation, and who has the skill to advise, promote and execute a seamless experience amidst a sea of information. I am that fiercely loyal advocate who will be available to take care of business for you at the most critical moments. A knowledgeable real estate professional you can trust to negotiate and deliver results. My care and understanding is what sets my service apart.

For the important and complex transactions in life... I will take care of the details while we identify goals, set expectations and meet priorities. I have served many loyal clients, along with their friends and family. At Prudential Advantage Realty, we provide clear perspective on what "the market" is doing, so clients can feel great about making informed decisions today.

To Your Success!