For Real Estate Investors
“Do something today that your future self will thank you for.” Sean Patrick Flanery
Congratulations on making the decision to buy an income property. As your accountant will attest, investing in real estate can help you build wealth in a number of ways. On a personal note, I’ve learned a lot about buying and owning multiple residential and commercial properties in my years as a Real Estate Broker and landlord.
In fact, it’s because of my own first-hand knowledge and experience in this area that I am particularly well suited to assist investor clients along the same path (it’s actually one of the aspects I enjoy most about my role). The best part: with the right team in place, it’s not difficult – we can do it together. I recommend consulting with an accountant and lawyer before purchasing; their professional advice will set you up properly to mitigate personal and financial risks.
Not sure how to compare which investment property will provide the highest return? Take a look at the table below. It provides a high-level overview of some of the most common calculations investors use to determine which will perform best.
* The IRR is a tool to determine the expected yield on an investment property to ensure the return meets the minimum rate of return the investor wants to achieve (known as the “Hurdle Rate”); theoretically, the higher the IRR, the more profitable the investment.
BONUS: The Rule of 72
This is a quick and simple way to determine how many years it will take your investment to double in value given a particular annual rate of return. To calculate:
Take the number 72 and divide it by the yearly interest rate you (hope to) earn. The resulting quotient gives you an approximate number of years it will take for that investment to double in value.
For example: 72 / 8% yearly return = 9 years for the investment to double in value
Interested to know more? Once you’re ready to move forward with your search or if you have any questions in the meantime, reach out anytime.