Q. I invest in rental properties, small businesses, stocks and commodities in Michigan, Italy and Egypt.
Every advice is appreciated.
Every advice is appreciated.
A. Sounds like you are way ahead of most of us already.
The best way to learn is from a book and good reference material.
There are some good reference websites
http://www.howthemarketworks.com./
http://stockmarket.makemoneyideas.in/
http://simulator.investopedia.com/home.a�
http://www.top10traders.com
http://investopedia.com (for finance terms and definitions)
http://investing.sitesled.com/
www.stockcharts.com
www.freestockcharts.com
http://www.fool.com/school/basics/basics�
http://beginnersinvest.about.com/library�
http://www.mysharetrading.com
http://help.yahoo.com/help/us/fin/
And there are some timeless and excellent books
"Which Is Better, Buy-and-Hold or Market Timing?"
"Do You Have What It Takes to Be a Market Timer
Kahn, Michael N.Tech. Anal. Plain & Simple
Kamich, Bruce M.How Technical Analysis Works
Lefevre, Edwin - Reminiscences of a Stock Operator
about Jesse Livermore
O'Neil, William J.How to Make Money in Stocks
Oz, TonyHow to Make Money From Wall Street
Rotella, Robert P.Elements of Successful Trading, The
Schwager, JackStock Market Wizards
Schwager, Jack D.New Market Wizards
Sperandeo, VictorTrader Vic-Methods of a Wall Street Master
Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay
The Intelligent Investor, by Benjamin Graham
One Up on Wall Street, by Peter Lynch
Common Stocks, Uncommon Profits, by Philip A. Fisher
Stocks for the Long Run, by Jeremy Siegel
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
Trading for a Living, by Alexander Elder
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
The best way to learn is from a book and good reference material.
There are some good reference websites
http://www.howthemarketworks.com./
http://stockmarket.makemoneyideas.in/
http://simulator.investopedia.com/home.a�
http://www.top10traders.com
http://investopedia.com (for finance terms and definitions)
http://investing.sitesled.com/
www.stockcharts.com
www.freestockcharts.com
http://www.fool.com/school/basics/basics�
http://beginnersinvest.about.com/library�
http://www.mysharetrading.com
http://help.yahoo.com/help/us/fin/
And there are some timeless and excellent books
"Which Is Better, Buy-and-Hold or Market Timing?"
"Do You Have What It Takes to Be a Market Timer
Kahn, Michael N.Tech. Anal. Plain & Simple
Kamich, Bruce M.How Technical Analysis Works
Lefevre, Edwin - Reminiscences of a Stock Operator
about Jesse Livermore
O'Neil, William J.How to Make Money in Stocks
Oz, TonyHow to Make Money From Wall Street
Rotella, Robert P.Elements of Successful Trading, The
Schwager, JackStock Market Wizards
Schwager, Jack D.New Market Wizards
Sperandeo, VictorTrader Vic-Methods of a Wall Street Master
Extraordinary Popular Delusions and the Madness of Crowds" by Charles Mackay
The Intelligent Investor, by Benjamin Graham
One Up on Wall Street, by Peter Lynch
Common Stocks, Uncommon Profits, by Philip A. Fisher
Stocks for the Long Run, by Jeremy Siegel
Bulls Make Money, Bears Make Money, Pigs Get Slaughtered, by Gallea
Trading for a Living, by Alexander Elder
From Riches to Rags, by I.C. Freeley
Millionaire Traders, Lein & Schlosberg
Buying a single family home for $140K to rent. Considering low interest rates, should I finance or buy cash?
Q. I have the ability to pay all cash or take out a 15 year mortgage with 20% down at 3.75%.. My money is not earning much in the bank. The property will rent for about $1,000/month.
Are there any sites where calculations can be made to evaluate suitability of investing in rental property? Thank you.
Are there any sites where calculations can be made to evaluate suitability of investing in rental property? Thank you.
A. You will get the best interest rate if you can put 25% down on an investment property. So, I would at least consider that as a minimum number if you decide to finance.
It's tough to answer this question without knowing other factors such as how much other savings do you have. Do you own a home as your primary residence? Is that home paid off?
Assuming your primary residence is paid off, I would not pay 100% cash, but maybe putting 50% down, and taking out a 10 year mortgage instead of a 15 year. 10 year rates are as low as 3.375%. Have the renter payoff the rest of your home, and put the other money either as a down payment on another home or other investment options.
It's tough to answer this question without knowing other factors such as how much other savings do you have. Do you own a home as your primary residence? Is that home paid off?
Assuming your primary residence is paid off, I would not pay 100% cash, but maybe putting 50% down, and taking out a 10 year mortgage instead of a 15 year. 10 year rates are as low as 3.375%. Have the renter payoff the rest of your home, and put the other money either as a down payment on another home or other investment options.
What is a good formula for splitting profits on a rental property investment?
Q. I am involved in a 3-way investment on a rental property and we are being forced to sell because of a DOT project. Our profit on this property will be approximately $75,000 and we need to figure out how to split this up. Being close family members, we weren't too concerned about figuring this out we bought the property.
I would really appreciate any suggestions from real estate investors experienced with partnership investments like this.
Here are the figures for the capital and work/mangement invested by each party.
Investor #1:
Invested $150, 000 by taking out a regular home loan.
Lived at the property and payed "rent".
Did 85% of the maintenance, improvements and rental property management.
Investor #2:
Invested $75,000 from a home equity line of credit.
Did 0% of the maintenance, improvements and rental property management.
Investor #3:
Invested $25,000 from a home equity line of credit.
Did 15% of the maintenance, improvements and rental property management.
Thank you!
I would really appreciate any suggestions from real estate investors experienced with partnership investments like this.
Here are the figures for the capital and work/mangement invested by each party.
Investor #1:
Invested $150, 000 by taking out a regular home loan.
Lived at the property and payed "rent".
Did 85% of the maintenance, improvements and rental property management.
Investor #2:
Invested $75,000 from a home equity line of credit.
Did 0% of the maintenance, improvements and rental property management.
Investor #3:
Invested $25,000 from a home equity line of credit.
Did 15% of the maintenance, improvements and rental property management.
Thank you!
A. Since Investor #1 paid rent and primarily maintained the home, it would be split like this
$250,000 purchase price; profit is 75,000 (I assume you have already taken the maintenance out of this)
Investor #1 paid $150,000 / $250,000 = 60% of $75,000 profit = $45000
Investor #2 - paid $75,000 / $250,000 = 30% of $75,000 = $22500
Investor #3 - paid $25,000 / $250,000 = 10% of $75,000 = $7500
If you haven't taken out the maintenance, then you need to deduct the cost of maintenance out of the profit and pay each of the parties back for the maintenance they paid. Keep in mind that investor #1, as a renter, would normally have had to maintain the property but I'm assuming that he did more than just "maintain" the property.
$250,000 purchase price; profit is 75,000 (I assume you have already taken the maintenance out of this)
Investor #1 paid $150,000 / $250,000 = 60% of $75,000 profit = $45000
Investor #2 - paid $75,000 / $250,000 = 30% of $75,000 = $22500
Investor #3 - paid $25,000 / $250,000 = 10% of $75,000 = $7500
If you haven't taken out the maintenance, then you need to deduct the cost of maintenance out of the profit and pay each of the parties back for the maintenance they paid. Keep in mind that investor #1, as a renter, would normally have had to maintain the property but I'm assuming that he did more than just "maintain" the property.
How can I invest in cash only rental property not with cash but using a loan?
Q. I live in Los Angeles looking to buy rental property in Florida. I'm looking at small investments (under 40,000) to then rent out. How can I take out a loan so I don't use all of my own money? (Cash only sellers will not wait the period it takes to secure the loan . . . ).
A. You would need personal loans leveraged against your other assets.
YOu are very brave.
YOu are very brave.
Powered by Yahoo! Answers
No comments:
Post a Comment