What is House Hacking?
House hacking is a phenomenal real estate investment strategy that can eventually lead to living in a home without having to pay a single dollar. Additionally, house hacking may even help you make some money every month that you can keep for yourself. Continue reading “How House Hacking Can Pay for Your Mortgage”
What is the BRRRR method?
BRRRR is a strategy used in real estate that allows someone to buy more properties while using less money. So how do you do this? Continue reading “How to use the BRRRR Method”
What is opportunity cost?
Opportunity cost is an important idea in economics that many businesses think about when investing. It is a crucial concept to think about when choosing to invest in something. So what does opportunity cost mean? Continue reading “The Concept of Opportunity Cost”
To be a successful property manager you need quite a few skills. You need to be able to keep yourself organized, communicate clearly, be patient, know the market, and think about the future. Here are a quick few tips to help you become a successful property manager and boost your property management career: Continue reading “How to be a Successful Property Manager”
What are credit reports?
Credit reports contain personal information. Information like one’s address, payment history, where one borrowed money from, and what one borrowed money for are a few examples. This information is collected over time by credit reporting agencies or also called credit bureaus. Like in school, depending on how well one performs in different classes, one’s grade is either good, bad, or in the middle. This is almost like credit reports because depending on how well one can manage one’s accounts, payments, and loans one receives a good or bad credit score. Continue reading “What Affects Your Credit Report?”
What is Debt Service Coverage Ratio?
Debt service coverage ratio or also called DSCR, is a ratio that is used by almost all commercial lenders. So why is the DSCR one of the most crucial factors lenders use to judge the risk level of your business or investment property loan? Continue reading “Debt Service Coverage Ratio”
What is Capitalization Rate?
Capitalization rate or sometimes called cap rate, is a rate that is found by taking a property’s annual net operating income and dividing it by the property’s current value. So why is capitalization rate so important, and why is it used by almost every real estate investor? Continue reading “Capitalization Rate”
In economics and business decision-making, a sunk cost (also known as retrospective cost) is a cost that has already been incurred and cannot be recovered regardless of any actions taken in the future.
A fairly decent example of this is one of my tenants that had not paid her rent in over a year.
From everything I know about property management, this past due rent has to be considered a sunk cost. Even if we eventually get a civil judgment against for this amount, in reality, we’ll be able to collect a smal portion of it and not without jumping through many hoops.
Continue reading “The concept of sunk cost”
Time is our most precious resource. It’s a non-renewable resource that is continuously ticking away. Our time to have an impact, make a difference or accomplish a goal is limited. We all benefit from downtime and relaxation, but I hope you will agree with me that during our “work” hours we want to make be as productive as possible. Your measure of success may be different than other folks but most likely it involves a number and often the bigger the number the better. Some examples may be:
Continue reading “Eliminate, Automate, Delegate in that Order”