- Cross-Border Real Estate Investment Guide
In an increasingly globalized world, real estate opportunities don’t stop at national borders. More Americans are looking beyond the U.S. for properties that offer not only financial returns but also lifestyle benefits, from beachfront condos in Mexico to city apartments in Europe. Investing in cross-border real estate can unlock new sources of income, hedge against… read more…
- Is It a Real Estate Buyer’s or Seller’s Market? Key Indicators
Whether it’s a buyer’s or seller’s market can affect pricing and negotiation. A seller’s market means demand is high and inventory is low, often leading to higher prices and multiple offers. A buyer’s market means more homes are available than buyers, leading to longer sale times and lower prices. Market signals include inventory levels, days… read more…
- Should I Sell My House or Rent It Out in 2025?
Mortgage rates are still high and home prices remain steady in many areas. At the same time, rental demand is strong, especially in places with limited housing. Whether to sell or rent depends on more than the market—it’s a personal financial choice based on your cash needs, long-term goals and comfort with managing property. A… read more…
- Is Rental Income Considered Active or Passive?
The IRS typically considers rental income passive income because investment properties don’t require day-to-day management. There are, however, exceptions, and the level of participation can alter this classification. This makes it important to determine whether your rental income falls under active or passive income for tax planning and compliance. If you’re planning to expand your… read more…
- What Is Real Estate Syndication?
Real estate syndication allows investors to combine their money to buy properties that may be out of reach individually. In a typical real estate syndication, a sponsor or syndicator identifies the investment opportunity, handles the acquisition process and manages the property, while passive investors contribute capital in exchange for ownership shares. These arrangements use various… read more…
- Short-Term Rental Investment: What to Consider, Pros and Cons
Individuals looking to diversify their income streams are increasingly looking at short-term rental investments. Airbnb and Vrbo simplify listing properties, giving investors more potential to earn high returns. However, anyone considering this investment path must weigh the pros and cons carefully. Consulting a financial advisor may be useful for investors who want a clear picture… read more…
- Lien Sale: What It Is, Types, Examples
Liens are legal claims on property that are often placed by creditors or government agencies to secure property taxes, contractor fees and other unpaid debts. Common types include tax, judgment, mechanic’s and residential liens. A lien sale settles the debt and can offer a chance to buy real estate and other assets at a lower… read more…
- What Are Mortgage-Backed Securities (MBS)?
Mortgage-backed securities (MBS) are investments made up of bundled residential or commercial mortgages sold to investors. As homeowners make their monthly payments, investors receive returns. These securities help lenders continue issuing new loans, keeping the housing market active. Some MBS are backed by government agencies, while others carry more risk depending on borrower repayment. A… read more…
- What Is a Fee Simple Absolute Ownership in Real Estate?
Fee simple absolute is a type of property ownership that grants the owner full rights to use, sell, lease, or transfer the property without restrictions. It remains in effect indefinitely unless transferred or acquired through legal means such as eminent domain. A financial advisor can help assess how this ownership structure fits into your overall… read more…
- How Does a Fee Simple Defeasible Estate Work in Real Estate?
A fee simple defeasible estate is a type of property ownership in which the owner holds title to the property with specific conditions or limitations. Fee simple defeasible estates are common in real estate transactions where property use is intended for a specific purpose, such as maintaining land for conservation, religious institutions or educational facilities.… read more…
- How Does Fiduciary Responsibility Apply to Real Estate?
Fiduciary duty requires real estate agents to act in the best interest of their client. This includes giving honest advice, protecting confidential information and making decisions that benefit the client financially. If an agent fails to do this, they could face legal or financial penalties. A financial advisor can provide additional insight and safeguards to… read more…
- How to Calculate Effective Gross Income (EGI) for Real Estate
Effective gross income (EGI) is a key metric for real estate investors looking to evaluate the income potential of a property. It represents the total revenue that a property generates after accounting for vacancy losses and other forms of additional income, such as parking fees or laundry services. By calculating EGI, investors can assess a… read more…
- How Does a Real Estate Investment Group (REIG) Work?
Investing in real estate can be lucrative, but not every investor wants to deal with the complexities of property management. A real estate investment group (REIG) offers a more hands-off approach, allowing investors to pool resources and collectively invest in real estate. These groups provide a structured way to gain exposure to real estate while… read more…
- How Easement in Gross Works in Real Estate
An easement in gross is a legal right that allows an individual or entity to use another person’s property for a specific purpose without owning it. Unlike easement appurtenant, which is tied to the land itself, an easement in gross benefits a person or organization rather than a parcel of property. Common examples include utility… read more…
- How Right of First Offer (ROFO) Works
Right of first offer (ROFO) is a contractual right that gives a potential buyer the opportunity to make the first offer on a property or asset before the owner entertains bids from other parties. Typically used in real estate or business transactions, ROFO can benefit both parties. It can help the seller gauge interest. The… read more…
- What Is a Gross Multiplier for Rental Properties?
The gross multiplier is a key metric in real estate that helps investors compare rental properties based on income potential. By analyzing a property’s gross income or rent, this measure assesses its value relative to earnings. Calculating the gross multiplier can help determine if a property aligns with an investor’s return goals. A financial advisor… read more…
- How a Gross Lease Works in Commercial Real Estate Investing
A gross lease in real estate is a commercial lease where the tenant pays fixed rent while the landlord covers most property operating expenses, including taxes, insurance, utilities, and maintenance. This setup offers predictability for tenants and simplifies expense management for landlords. Knowing how a gross lease works helps investors and business owners assess potential… read more…
- How to Value a Real Estate Investment Trust (REIT)
Valuing a real estate investment trust (REIT) requires a clear understanding of advanced financial metrics. Unlike other investment types with metrics like earnings per share (EPS) and price-to-earnings (P/E) ratios, REIT valuation techniques often include using tools like net asset value (NAV), funds from operations (FFO) and adjusted funds from operations (AFFO). These metrics help… read more…
- Commercial Real Estate Due Diligence Checklist
A commercial real estate due diligence checklist can help potential investors uncover hidden risks, validate the property’s value and avoid costly surprises. No matter what type of commercial real estate you’re buying, such as an office building or industrial space, using a commercial real estate due diligence checklist is an important step in the buying… read more…
- How to Sell Your REIT Shares
If you’re wondering how to sell your real estate investment trust (REIT) shares, don’t worry. The process is fairly simple. You typically start by contacting your brokerage or financial advisor, who will facilitate the transaction. The price you receive will depend on the current market value, which fluctuates based on the REIT’s performance and broader… read more…
- Pros and Cons of Investing in a Real Estate Investment Trust (REIT)
Investing in a real estate investment trust (REIT) allows you to diversify your portfolio with real estate assets without having to buy property. Along with accessibility, this investment type offers a range of advantages, including liquidity and the potential for regular income. But there are disadvantages, too, like market volatility and interest rate sensitivity. Before… read more…
- Is Now a Good Time to Invest in Real Estate?
Timing can play a key role in the success of a real estate investment. Current market conditions and trends could make all the difference, whether you’re looking to invest in rental properties, commercial spaces or residential homes. In 2024, the real estate market presents both opportunities and challenges for investors, with changes in interest rates,… read more…
- How Much Does an Eviction Cost for a Landlord?
While it’s never ideal to remove a tenant from a property, certain situations, such as nonpayment of rent, lease violations or property damage, may leave you with no choice. Figuring out who pays legal fees for eviction can be complex and expensive for landlords because the cost of eviction includes not only legal fees but… read more…
- How to Wholesale Real Estate Without Using Your Money
Many investors want to know how to start wholesaling real estate without using their own money. This strategy allows individuals to act as the middle person between sellers and cash buyers, which could help them earn a profit without buying property or taking out loans. To do this successfully, you will need to find motivated… read more…
- How Much Security Deposit Can Landlords Charge in California?
California’s house rental security deposit law (Civ. Code, § 1950.5.) protects tenants from excessive fees by limiting the amount landlords can charge for a security deposit, as well as what they use it for and how long they have to refund it to tenants. It’s important to note that these limits apply to residential properties… read more…