Real Estate

One of the largest industries in the form of financial activity, real estate represents nearly 20% of the US economy. It is broadly defined to include not only commercial and residential activity but farmland too. This section of the website is devoted to the economic and business standards used in this vast industry. 

For now, enjoy the information and if you have questions, ask me by sending me an e-mail to dave (use the standard symbol) businessecon.org, I’m trying to prevent spam. Act on Knowledge.

Value Investing Episode 1 – Introduction and Membership Program

• Apartment Complex Profit and Loss Statement – (Revenue Section) Best Presentation Format

  
  In the apartment complex industry I have had the privilege of reviewing four different presentation formats prepared by different Certified Public Accounting Firms. Interestingly enough, they were all distinctly different. But one stood out! It made much more sense than the others. One of the other three had an interesting subsection and so I combined the best ...

• Don’t Flip Them, Finance The Flip!

  
  The rage in real estate for the last 17 years has been flipping houses. Simple tenet 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 work if you simply finance the deal?  You would ...

• Financial Leverage in Real Estate

  
  Financial leverage refers to using a third party’s money to increase profit for the borrower. With 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 property).

• 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 single article that goes into the details of the business dynamics of flipping ...

• Occupancy Rate – How to Evaluate

  
  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 nights the facility is occupied against total available nights. 

• Real Estate Agent – Drawbacks and Delusions

  
  The highest prized benefit of owning your own business is independence. You rely on your skills and have to report to no one but yourself. This is the allure of becoming a real estate agent. Imagine, making a lot of money and working when you want to work. Very appealing to just about anyone, wouldn’t ...