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I Advice - Real Estate Investing By the Numbers:Part 2
A CV Coach is not so different from any other type of coach. The aim of coaching in general is to find ways of turning potential into reality and often involves working with the belief systems and confidence of the individual.Consider the tennis coach: by watching what the player does and how the player moves, the coach can suggest new moves and actions. By observing the player’s moods and self-talk, the coach can identify whether the player is self-defeating or self-supporting and institute any changes over a period of time.A CV Coach will work with you to identify your most saleable and relevant skills and attributes and then use carefully chosen language to represent you on paper
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain d
Exactly why people will bid sometimes thousands of dollars on something they haven’t seen and don’t understand is way beyond me, but the fact is large sums of money have been spent (and earned) on thousands of past mystery auctions on eBay.Perhaps it’s because:* People genuinely like surprises and can’t wait to pick up and open the box they’ve just bought to examine the contents.* Curiosity is a major factor in determining number and extent of bids on your mystery packages. Because only the winning bidder is likely to see the actual contents of a particular mystery package you’ll find people bidding fast and furious to own something they may not want or like, which nonethe
In addition to the normal New Year's resolutions that you make, I highly encourage you to add one more to your list that you will actually keep….. LEARN TO BECOME A GOOD INVESTOR. During the time that our web site has been in existence, I have met many clients and investors who are all very bright and I know that they do some complicated things in their day job like surgery, education, law, etc., etc. What surprises me however is that many people feel that investing is rocket science. Having been a scientist and actually worked on a rocket, trust me when I tell you that investing is far, far from rocket science on the complexity scale. Most of real estate investing is just good old common sense that once you see it, you feel kind of silly for thinking that it was so complicated.
One of the common themes among many professional people I meet is that they are just too busy to learn what is needed. They go on to tell us that all they want to do is find somebody they trust and then take their advice….. Kind of like I don't want to learn medicine if I have a threatening ailment. While I agree with that for many things in life, for important issues like your health, your family's financial future, your children's education, etc., I believe a much healthier approach is to find a provider that you trust but learn enough to get comfortable with what they tell you. That way you have a much stronger conviction when you make a decision other than "gee, this doctor recommends this approach" or "wow, I will buy this property because Dr. Anderson sounded really excited". … I hate to be the bearer of bad news but for both those decisions, you will wake up one morning a few months down the road going "did I make the right choice?" If you understand why you made that choice, then that thought will rapidly disappear and not be a hurdle. On the other hand, if you don't understand why you made that choice, you are in for some mental roller coasters.
As part of our push in 2007 to create a small, but extremely well educated investor community, let me now get off my soapbox and describe the next piece of investing by the numbers.
What You Need To Know
In our last article, we described the four key parameters that any real estate investor needs to know to evaluate a project. Just as a reminder, they are
1. Purchase Equity.
2. Annual Appreciation (%)
3. Annual Cashflow
4. Special Tax Situations
In our live workshop in NYC, we recently covered how you can sit at your desktop and get this information. For our projects, we provide this information to you but I believe it is really good to see one time how to actually do that and that it makes sense. Then, when you are looking at a property where information has been provided to you, then you can always go back and double check any piece that may not make sense. In late January early February, we will be conducting multi-city tours where you can come out and meet us live and we will teach this content. Please go to this page to tell us the large city that you live next to and give us a contact email if you would like to attend.
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain d
You may be thinking what does this have to do with jobseeking or finding my dream job. Well, i will tell you. I have always been of the opinion that into today's world or indeed if you are going to be successful in your career you you need to think like a business person. Gone are the days when every aspect of our lives were centralised, in the olden days our forefathers thought like business people. They went out to the farm and had to be independent, catering for themselves and their family.It was later on that we saw the advent of the social state where people became more dependent, and this in some ways has led to people not being able to look after themselves or their families, always
One of the common themes among many professional people I meet is that they are just too busy to learn what is needed. They go on to tell us that all they want to do is find somebody they trust and then take their advice….. Kind of like I don't want to learn medicine if I have a threatening ailment. While I agree with that for many things in life, for important issues like your health, your family's financial future, your children's education, etc., I believe a much healthier approach is to find a provider that you trust but learn enough to get comfortable with what they tell you. That way you have a much stronger conviction when you make a decision other than "gee, this doctor recommends this approach" or "wow, I will buy this property because Dr. Anderson sounded really excited". … I hate to be the bearer of bad news but for both those decisions, you will wake up one morning a few months down the road going "did I make the right choice?" If you understand why you made that choice, then that thought will rapidly disappear and not be a hurdle. On the other hand, if you don't understand why you made that choice, you are in for some mental roller coasters.
As part of our push in 2007 to create a small, but extremely well educated investor community, let me now get off my soapbox and describe the next piece of investing by the numbers.
What You Need To Know
In our last article, we described the four key parameters that any real estate investor needs to know to evaluate a project. Just as a reminder, they are
1. Purchase Equity.
2. Annual Appreciation (%)
3. Annual Cashflow
4. Special Tax Situations
In our live workshop in NYC, we recently covered how you can sit at your desktop and get this information. For our projects, we provide this information to you but I believe it is really good to see one time how to actually do that and that it makes sense. Then, when you are looking at a property where information has been provided to you, then you can always go back and double check any piece that may not make sense. In late January early February, we will be conducting multi-city tours where you can come out and meet us live and we will teach this content. Please go to this page to tell us the large city that you live next to and give us a contact email if you would like to attend.
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain d
Car wash businesses are unique to other businesses. In fact they are about as unique as the many different type of vehicles one is asked to wash. Many vehicles are best cleaned using slightly different techniques. If you own a carwash or a mobile car wash you will need an operations manual to assist your managers in staying efficient.Below is a sample outline we used in creating our washing procedure manuals in our company; www.carwashguys.com. You are welcome to have this outline to help you create a set of World Class Washing Procedures for your company. Here is what I recommend; First, print this article and then go through each item and determine if it is relevant to your company. If
As part of our push in 2007 to create a small, but extremely well educated investor community, let me now get off my soapbox and describe the next piece of investing by the numbers.
What You Need To Know
In our last article, we described the four key parameters that any real estate investor needs to know to evaluate a project. Just as a reminder, they are
1. Purchase Equity.
2. Annual Appreciation (%)
3. Annual Cashflow
4. Special Tax Situations
In our live workshop in NYC, we recently covered how you can sit at your desktop and get this information. For our projects, we provide this information to you but I believe it is really good to see one time how to actually do that and that it makes sense. Then, when you are looking at a property where information has been provided to you, then you can always go back and double check any piece that may not make sense. In late January early February, we will be conducting multi-city tours where you can come out and meet us live and we will teach this content. Please go to this page to tell us the large city that you live next to and give us a contact email if you would like to attend.
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain d
MySpace happens to be one of the best social networking websites present on the internet today. The website is basically a social networking website which happens to be one of the most frequently visited website in the world. This website has seen tremendous growth in the number of visitors which visit this website. The number of people who are members of this website are also huge. As a result it ids very much possible for other websites to take advantage of this traffic and get some traffic diverted towards their website as well.The most important and commonly used way to generate traffic with MySpace is to use the forums and blogs which are present on the website. This website has a num
As part of our push in 2007 to create a small, but extremely well educated investor community, let me now get off my soapbox and describe the next piece of investing by the numbers.
What You Need To Know
In our last article, we described the four key parameters that any real estate investor needs to know to evaluate a project. Just as a reminder, they are
1. Purchase Equity.
2. Annual Appreciation (%)
3. Annual Cashflow
4. Special Tax Situations
In our live workshop in NYC, we recently covered how you can sit at your desktop and get this information. For our projects, we provide this information to you but I believe it is really good to see one time how to actually do that and that it makes sense. Then, when you are looking at a property where information has been provided to you, then you can always go back and double check any piece that may not make sense. In late January early February, we will be conducting multi-city tours where you can come out and meet us live and we will teach this content. Please go to this page to tell us the large city that you live next to and give us a contact email if you would like to attend.
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain d
Mobile marketing is an excellent way for you to connect to your intended audience in an effective manner every time. There are several benefits to using this time of marketing and you may not realize the potential it creates for your business. Finding that all important target moment when it will strike the individual just right is the difference between effective advertising and a waste of your advertising dollar. Here are some things to consider about mobile marketing.One of the many benefits that mobile marketing works well for is the simple fact that it is personal in nature. Consider the fact that instead of advertising on a huge billboard and hoping that those that drive by will
Calculating Cash On Cash Returns And Yearly Returns
One of the standard measures of many investments is what is called cash-on-cash returns. This is just a fancy word that says what % gain do I get for holding an investment. For example, let's say that you plunk down $20,000 in down payment and closing costs on a real estate investment and let's say in 2 years, you get back $65,000 after reselling with all expenses included; i.e., you have a $45,000 net profit.
The cash on cash return for this is simply:
COC(%) = 100%* 45000/20000 = 225%
One problem of this measure is that it does not take into account the time-value of money; that is, if I made that in 2 years versus 20 years, it makes a huge difference. So suppose in this example we plunked down $20K, got a simple interest return the first year, and then reinvested that gain with the same interest. Now what interest rate would accomplish this? A little more complicated to calculate but the annual rate of return to produce this is just a little of 80%. To see this, you can do the following:
Year 0: $20,000
Year 1: $20000*(1+80.2%) = $36,055
Year 2: $36055*(1+80.2%) = $65,000
If you are still in the mindset of 2004/2005 that you can plunk down $5,000 on something and make $75,000 in 6 months by flipping, then I wish you the best of luck. This is just not realistic except for a few needles in the haystack. On the other hand, if you are comfortable with making 30-40% per year on your money over a 2-5 year time frame, then that is very realistic and can be done with low risk.
So when we evaluate potential opportunities, one of the first parameters that we are looking at is this yearly return and we like to see 30%+. As we will discuss next week, this is not the only factor to consider but it is certainly one of the top 3.
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