If you saw my last post, in it we talked about monitoring your credit. We talked about where you could find this information, and what to look for. Now, I’d like to talk to you about working on getting these scores to the area that is considered good credit. Experian.com states that a score of 700 and above is considered good,...
C R E D I T.......those 3 digit numbers that can make or break you when it comes to finances. You want to get a loan? You want to get a credit card? You want to rent an apartment? You want a certain job? You want to buy a car or a house? On any path to property ownership- whether...
Lenders classify properties in different ways depending on how the property will be used. Financing a primary residence is different than financing an investment property. Here are the differences between the two main types of properties. We’ll also explain why the rules are different for each one. Financing a Primary Residence What Constitutes a Primary Residence? A primary residence is, of course,...
The Federal Reserve raised its overnight rate again a little over a month ago, and as a result, there are a lot of people who were expecting that mortgage rates would go up as well.  However, this assumption has gone wrong as mortgage rates have since declined in the period after. Current mortgage rates have slid to around 4.04%...
Understanding the concept of Return on Investment (ROI) is essential for every investor. It is a term that is used to indicate how much money you will get back from an investment after accounting for all of the expenses. It is expressed as a percentage of the original investment cost, and is one of the simpler metrics used when...
There isn’t a perfect formula on how to save enough money for your first investment – especially not an immediate solution. Saving money is still more than feasible, and is a great decision to work towards. No matter what time or place you’re in right now, it’s wise to start saving and aiming for an investment that will in...
Worried about your finances? When it comes to money, does it seem like one day you have it, and the next day it’s gone? To overcome this issue, you need to manage your finances better, and here is a one week plan to help do that. Spending around 30 minutes every day for one week will help you to...
Net Operating Income (NOI) is the calculation of (Gross Income - Operating Expenses). Operating expenses include such items as repairs, property taxes, management fees, maintenance, etc.  Operating expenses do not include debt service (principle and interest) or depreciation. As such, NOI does not reflect the actual net income the property will provide, nor the taxable income. https://www.reinvestorforum.com

Cap Rate

The Cap Rate, or Capitalization Rate, is a common measurement tool used by real estate professionals to measure the attractiveness of a property. Cap Rate measures the Net Operating Income (NOI) as a percent of the Sales Price.  It excludes the expense for debt service (mortgage interest), and provides a straighforward view on the return on investment (ROI) that can...

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