Monthly Archives: October 2015

Oct 15 2015

Preparing Your Net Worth Statement to Buy Investment Real Estate

checklist-628x363[1]In a previous blog (Get Organized Before Buying Investment Real Estate), I outlined a list of documents that anyone should have prepared before they seek financing for their real estate investment acquisitions.

One of the most important documents is your “Net Worth Statement”. In the last year I’ve had the pleasure of reviewing dozens of these and, as a result, it’s clear to me that many newbie investors have a challenging time filling it out properly. As a result they have reported having a challenging time obtaining financing approval within the time constraints of their deadlines.

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Oct 9 2015

Pay Attention to the Small Things, Because They Add Up Quickly!

Light bulb vs. LEDShort term pain for long term gain. Many people will avoid spending $100-200 to replace their lights with a more efficient alternative.

Recently I replaced the last 16 bulbs in my house with LEDs, the investment of $128 will break-even in less than 18 months and save me approximately $2,000 over the next 20 years.

At this pace, assuming no increase in electricity cost for the next 20 years (which is unlikely), worst case scenario I will earn an annual ROI of 33.3%; which is far greater than the historical average ROI of the stock market historical average of 10.1% (8.7% adjusted for inflation). There are many cases when masterful saving can outperform systematic investing and it’s worth paying attention to.

Take a look:

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Oct 1 2015

Should I Use My Home Equity for Investing? Discussing the Risks and Rewards

Home equityEvery penny counts towards your retirement and it’s vital to sock away as much as you can afford, especially while you are young. How much can you afford to invest? Let’s assume you can invest $300 each month ($3,600 each year).

Every time you look at your investments it appears to be growing; albeit slowly. Is there a way to kick-start your investment account? There is, but it’s going to require an entirely different mindset about what risk truly is and an understanding of how risk can be managed. Let’s discuss…

Most homeowners have equity in their house and each and every month as the mortgage is paid down this equity continues to grow. Unfortunately this equity earns $0. Of course the value of your home appreciates slowly over time, but this would happen regardless of what you owe on it.

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