ilmscore | 3 Ways To Make Money As A Real Estate Investor

3 Ways To Make Money As A Real Estate Investor

Published: 2023-10-23
Status: Available | Analyzed

Predictions from this Video

Total: 10
Correct: 0
Incorrect: 0
Pending: 10
Unrated: 0
Prediction
Topic
Status
The speaker aims for a 7% cash-on-cash return for real estate investments.
"generally I'm looking for a 7% cash on cash return on my money"
Real Estate Investment Strategy
Pending
Property value appreciation can be driven by increasing revenue or decreasing expenses.
"you can increase the revenue or you can decrease your expenses or I guess you could do both"
Real Estate Appreciation Driver
Pending
Rental income can be increased by raising rents.
"you can increase the revenue by increasing the rents"
Real Estate Rental Income Increase
Pending
Improving the interior of a property can enable higher rental rates.
"if you can improve the property on the inside you can make the units better that will allow you to raise your rents"
Real Estate Renovation Impact on Rent
Pending
A net income of $160,000 divided by a 5% cap rate values a building at $3.2 million, up from its initial $2.5 million valuation.
"if you take this $160,000 and you divide it by 5% that means that now this building is no longer valued at 2 and 1.2 million now this building is being valued at 3 .2 million"
Real Estate Value Calculation
Pending
A net income of $160,000 divided by a 4% cap rate results in a property valuation of $4 million.
"if you take this $160,000 and you divide it by 4% now that means your property is worth $4 million"
Real Estate Cap Rate Reduction Impact
Pending
A cash-out refinance can allow investors to pull out up to $3 million in debt from a property.
"you can do a Cash out refinance which means now you can pull out let's just say $3 million in debt out of the property"
Real Estate Equity Access
Pending
Cash-out refinances are tax-free as they are considered debt, not income.
"because when you do a Cash out refinance it is tax-free because it's not actually income it's just debt"
Real Estate Tax-Free Equity Withdrawal
Pending
Using the full proceeds from selling a property to purchase a new, larger, and higher-cash-flow property can allow for zero taxes to be paid on the gains.
"if you take all of this money you take all $4 million and you go out and buy a new property a bigger property a property that pays you with more cash flow you can pay 0 in taxes today"
Real Estate Capital Gains Tax Avoidance
Pending
The 1031 exchange can be utilized multiple times for ongoing tax-deferred real estate reinvestment.
"and the nice thing is you can do this again and again and again"
1031 Exchange Repeatability
Pending