Investments

investments

Fill out this form and an Investor Broker will contact you with either a list of high cash flow properties or schedule an investment consultation.

 

Verification

The IDEAL Investment

Rental real estate is considered to be the IDEAL investment

I – Income – the property generates income during the holding period.
D – Depreciation – this a non-cash deduction that reduces income and therefore saves taxes.
E – Equity Build-up – most mortgages are amortized with some of each payment reducing the principal balance.
A – Appreciation – it is reasonable to expect real estate to go up in value over time.
L – Leverage ¬– leverage is characteristic of borrowed funds that allow the investor to enjoy a profit on the overall increase in value rather than just the cash invested.

The Rules

  1. Real estate is an IDEAL investment.
  2. Invest in single family homes in predominantly owner-occupied neighborhoods at or below average price range.
  3. Profit starts with purchase; buy below market value.
  4. Reward is directly proportionate to the risk involved.
  5. Avoid functional obsolescence unless you have a cure before you buy.
  6. Good property + good tenant + good investment = great investment
  7. Problems left unresolved have a tendency to get worse.

The Value Investor recognizes that rental property, when performing normally, generates reliability in cash flows and capital appreciation.

In determining the right price range for rental purchases, the investor needs to research what rents best and what will ultimately sell best. The rent is critical to the income during the holding period, and holding or increasing its value is important for the proceeds at the end of the holding period.

Generally, lower price range properties will rent for a higher percentage of value than higher price properties as shown in the table below. The prudent investor will examine and confirm this theory for their individual market.

 

Value $100,000 $125,000 $150,000 $250,000
Monthly Rent $1,100 $1,200 $1,400 $2,000
Ration 1.10% 0.96% 0.93% 0.80%

MEET THE TEAM

Learn more about who we are and how we deliver Signature Service and Powerful Results.

Read more

HOME SEARCH

Residential, commercial and rental properties. Search to find them here.

Read more

HOME VALUES

Find out instantly what your home is worth. Check out the home values in a neighborhood you like.

Read more

SUCCESS STORIES

What do our clients have to say about Spencer Properties? Read their testimonials.

Read more

×
Monthly Payment Calculator

×