Real Estate Investments

//Real Estate Investments
Real Estate Investments2018-10-22T16:21:49+00:00

The IDEAL Investment

Rental real estate is considered to be the IDEAL investment

Hello I’m Jennifer Spencer and this is Christine Blackwell, and we’d like to share a little bit about the investment practice that we have at Spencer properties. We are passionate about real estate investment. I’ve been invested in real estate since 1997 and over the years I’ve received an average about a twenty-seven percent annual rate of return on my rental properties so I get very excited when I talk about this. What Christine does, as our investor broker, is identify properties that might be a good fit. I’m going to run a series of analytics to determine properties that will give you the best cash flow and will have long-term appreciation. She runs those analytics on a regular basis combing through all the available properties in the Raleigh area looking for the ones that have the best short-term and long-term return for you. So we would love to share that list with you. If you’re interested in receiving our list on a regular basis, please contact us we’d love to talk with you more about investing in real estate and the strategy for identifying properties and share with you the great work that Christine does. Call us at 919-602-7411. We would love to get together; We’d be very excited about discussing it with you!

I Income – the property generates income during the holding period.

DDepreciation – this a non-cash deduction that reduces income and therefore saves taxes.

EEquity Build-up – most mortgages are amortized with some of each payment reducing the principal balance.

AAppreciation – it is reasonable to expect real estate to go up in value over time.

LLeverage – 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. The prudent investor will examine and confirm this theory for their individual market.


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