How to Value Any Piece of Real Estate; Where to Find the Best Return on Real Estate Investments; The key to Getting started in Real Estate Investing
Great tips from Dr. Steve Sjuggerud, Advisory Panelist, Investment U
(1) Don't pay too much for the earth - don't pay more than a 10% premium to the market value of the properties.
(2) Don't pay too much for the business. look at the P/E ratio.
(3) As a good real estate investment rule of thumb, net rents in real estate (by "net," I mean after expenses) have averaged about 1% above Treasury bonds, which is about 5%.
Great tips from Mike Palmer on where to find the best return on real estate investiments:
" ... you're likely to find better valuations and better returns if you look in the less-visible middle sections of the country, and avoid the high-profile coastal metropolises."
In other words, don't try buying Ginza or Azabu where the price is already high. Find areas that are in the next wave of boom.
Dr. Steve Sjuggerud's key points of starting in real estate investing:
(1) Investing is better than speculating
(2) "Property will always go up in value" is a myth
(3) Getting Started in Real Estate Investing with Residential Property
(4) Truthful Real Estate Investment Advice: Don't Believe Everything You Hear or Read from Sellers and real estate agents
(5) not just "Location, Location, Location " but "double-digit cap rate"
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