Recent Articles

Real Estate

Real estate represents one fifth of our economy. From single family residential to farmland, it is the largest portion of the US economy.

Occupancy Rate – How to Evaluate


In the real estate sector lies the temporary housing industry.   Temporary housing includes hotels, motels, resorts, apartment complexes and rental homes.   The number one tool to measure performance is occupancy rate.   This is the number of [...]

Financial Leverage in Real Estate


Financial leverage refers to using a third party’s money to increase profit for the borrower.  In real estate the profit or equity in the property is the weight being lifted by the use of a lever (borrowing money) on the fulcrum (the [...]

Replacement Reserves- Understanding the Fundamentals


Long term and short term housing rental businesses use a financial operations tool to maintain, repair and upgrade the physical facilities.  This tool is known as replacement reserves in the real estate industry.  In almost all cases it is a [...]

Don’t Flip Them, Finance The Flip!


The rage in real estate for the last 15 years has been flipping houses.  Simple principle of buy low, fix it up and sell high – House Flipping Business Dynamics.  What if I told you there was more money to be made with less risk and very little [...]

Landlord – Business Dynamics and Economics


I love the game of Monopoly.  My sons enjoy playing it too.  But we all have the same complaint about the game; it takes forever to accumulate all the wealth and ultimately win the game.  Being a landlord means the same thing.  It will take a [...]

Flipping Houses – Proper Inventory Turnover Rate


In your typical business operation, turning the inventory over as often as possible has several benefits.  First, it generally reduces overall costs, secondly, it generates greater profits and third, by increasing the profitability, the company has [...]

House Flipping – Business Dynamics


There is a lot of misinformation about flipping real estate on the internet and on television.  I’m mostly shocked by the lack of detailed information related to the entire cost of the project and the adjusted sales price.  I have yet to read a [...]

Real Estate Syndication


Have you ever wondered how apartment or office complexes are financed?  A typical complex will have 80 to 100 units and the cost of construction will approximate $7,000,000.  So where does this money come from?  Your average person will think it [...]

Real Estate Investment Trusts – REITs


Real Estate Investment Trusts are corporations, trusts or associations that act as agencies in real estate and associated mortgages. This is a specialized tax segment and it requires recognition by the Internal Revenue Service to operate as a Real [...]
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