This podcast gives you the basic advice on real estate investing information in terms of how to go about the rates for property that you would like to make an investment on and on how to make the most out of your investments and avoiding costly mistakes. This has been carefully and well gathered by Kevin Bupp.
Real Estate Investing Information-CAP Rates and Advice on Cash Flow
In episode 19, Kevin Bupp talks about cap rates and how to add value to the property. The cap rates basic rule is around 10% on the existing performance, and there are some variables that determine the price of the property, for example, the location, size, market, residence makeup condition and the financing available for that particular asset.
When you’re searching for property in terms of CAP rate only, you’re bargaining a lot, as you should consider other factors. Issues that should be checked in properties include the environment and some of the challenges, for example, the water systems. It’s important to check if they are in good conditions or if they have some problems such as the area is swampy and will cost a lot in renovations.
Significance of Geography to Making Good Real Estate Investments
In episode 28, Kevin talks about selecting an ideal geographical area for your investment. You need to collect the relevant data, for example, that of the residents within that property or area. You should also be able to travel to the area easily. It can be closer to a major road or an airport. Pick areas that are fundamentally stable, that is, there are activities going on quite well, for example, an apartment that already has residents. This helps in saving time us it narrows down your options and you can thus focus your energy in that particular area.
Kevin emphasizes the need to document the data that you collect as it helps you all through your searching process. The area should have a diversity of activities going on for instance businesses. Classy apartment buildings are more attractive and those that have a good number of residents.
Real Estate Investing Information on Avoiding Mistakes in Underwriting Deals
In this episode, Bruce Kirsch joins the conversation, he gives tips on how to avoid mistakes in financial evaluation, and he finds this important because a single mistake can cost you a lot. The first tip is to always do a sanity test, take a little walk around after spending some time doing spreadsheets and balance sheets because you may have forgotten to do something, for example, forgetting to pay off the loan at the end of a transaction. Look at things with a critical eye, edit the mistakes, and come up with a reasonable document.
Discovering Why and How to Grow your Real Estate Business
In episode 20, Kevin shares about the importance of knowing why you want to be a real estate investor. He gives five steps:
1. Giving a description of what you’d like to do
2. Describing clearly how you would wish to do it
3. Explain why you want to do it
4. Ponder on why you would want to achieve it for yourself
5. Look at some of the other necessary reasons why you would like to become a real estate investor
In conclusion, this podcast can be very helpful to those who want to venture out into real estate. Tune in today!