appreciation

Appreciation or Cash Flow — Which is Better?

by Peter Giardini | January 19, 2012

Yes I know, I am treading into a debate which in all likelihood would cause a real brawl if discussed over a few beers, but that is not my intention. My intention is really simple. Is today’s market a better market to be investing for appreciation or for cashflow? In some markets the answer might be BOTH, [...]

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Real Estate Investing

Investment Property Location: Don’t Dismiss the #1 Rule in Real Estate

by Joey Wang | October 26, 2011

“Location, location, location!” You understand the importance. It’s the number one rule in Real Estate. Yet when it comes time to choose between a high cash flow property in a less desirable neighborhood versus one with a lower cash return but in a great location, you naturally start questioning the age old adage. Why does [...]

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Landlord Tenant

How to Find the Best Rental Markets

by Steve Dexter | November 18, 2010

We love cash flow and growth, don’t we? Rental income, appreciation and escalating house prices make us rich. Then how come we don’t talk enough about the concept of value, which is what makes successful buy and hold investors wealthy? Since I choose to invest in California, I always consider the long-term as opposed to [...]

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Commentary

Appreciation: The Investor’s Great Unknown

by Douglas Lazovick | November 2, 2010

Most experienced investors will tell you that comprehensive analysis and underwriting is the key to success in real estate investing and that appreciation is just an added bonus in the equation. While that is sound advice, lets be honest; appreciation is the 800 pound gorilla in the room when it comes to real estate investing. [...]

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Real Estate Investing

Future Housing Appreciation: Myth or Reality

by Peter Giardini | April 15, 2010

It always scares the daylights out of me when I start to read about “appreciation” in the housing market. It’s not that there is a discussion regarding appreciation occurring… that is always a good thing. What worries me most is that there are far too many investors, usually new investors, who get caught up in [...]

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Real Estate

Monkeying With The Numbers in Ape Country: Tarzana, CA

by Florence Foote | February 23, 2010

Ziprealty recently issued its report of real estate statistics covering the fourth quarter of 2009. This report never fails to attract a great deal of media attention, and makes headlines all over the blogosphere. But you might want to take those (and similar) statistics with a grain of salt. Among the hottest markets in the [...]

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Housing

Real Estate Economist Sees Opportunity Until 2014

by Ryan Hinricher | February 15, 2010

This week I was listening to a conference call with real estate economist Mark Boud of Real Estate Economics. He was offering insight to where the market is today and what we can expect in 2010 and beyond. I’ve put together some highlights of his findings and data. New home construction will be lower in [...]

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Real Estate Investing

Appreciation Rate Isn’t What’s Most Important

by Jeff Brown | February 2, 2010

Lost in the weekend conversation about the current state of your portfolios, beside the fact your steak just cruised past medium rare, is what’s really important. Assuming your main goal is an ever increasing net worth, obsessing on appreciation can sometimes take your eye off the ball. That ball is capital growth. But isn’t appreciation [...]

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Foreclosures

Proceed with Caution: Low Prices Doesn’t Necessarily Equal Quality Investment

by Kyle Koller | August 17, 2009

RAMONA, CA - OCTOBER 30: A real estate for sa... The great real estate boom reached its apex in 2006—and then the bubble burst. More specifically, the single family home bubble burst. Now, for the first time in years, condos and townhomes are suddenly affordable for a lot of people in places like California, Arizona and Florida. Combine this with Obama’s tax incentives and you’re looking at a buyer’s market. While this is great for able and willing prospective homeowners, it could prove to be a trap for real estate investors.

“I’m buying homes for 50 cents on the dollar!”

The question on most investors’ minds is “has the market reached the bottom?” The definitive answer is that nobody knows. On the BiggerPockets.com bulletin, Joshua Dorkin posted a link that addresses this very issue. In the article, the author argues that there will not be a quick recovery to home prices. That may or may not be a true statement (although I’d bet he’s right), but home prices are definitely selling at prices half of what they were three years ago.

And therein lies the trap

Some real estate investors like to think that they are purchasing single family residences at steep discounts—“50 cents on the dollar!” But this begs the question: to what dollar are they referring?

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Real Estate Deals

Real Estate Investment Economics

by Mike Farmer | March 22, 2008

Real Estate Investment Economics When considering the economic viability of an investment, present income and future income should be evaluated carefully along with changes and predictions of demographics. A fully rented strip mall may look attractive to start with but an evaluation is in order to determine economic viability. Is the area growing at a [...]

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Housing

US Metros With Highest & Lowest Rates of Price Appreciation

by Joshua Dorkin | September 6, 2006

Last night we showed other parts of the Office of Federal Housing Enterprise Oversight (OFHEO) Report. The only thing I didn’t cover that I wanted to was the report’s ranking of MSAs (Metropolitan Statistical Areas — see Census) for home price appreciation rates. As you can see, 9 of the top 20 metropolitan statistical areas [...]

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