Myths? Real estate is always a good investment. Real estate values always go up. The price of a property should be 100 times the rent.
Have you heard these?
Indeed, we think there are plenty of opportunities in investing. However, we also have an acute awareness that not all real estate is “good investment”. We work with clients to help them understand real estate returns and total return on investment. Not just the rudimentary cash flow or cash on cash return calculations, but also total returns that let you evaluate the potential (and limitations) of properties that you are considering.
Income – This talks about income that is coming in and rent that is being paid.
Depreciation – A tax tool that can be beneficial.
Equity – Growth that comes from a tenant paying down the mortgage.
Appreciation – The value of the property that tends to go up eventually.
Leverage – You can borrow money to buy real estate so that your returns are multiplied.
The video below will help you understand each element better by breaking them down with examples. The model we use to calculate real estate return is also explained on the video. Watch the video below to further understand and calculate what the return is.
Talk with us about your investing goals. Let’s help you develop and execute a plan for your real estate portfolio. Whether it is ultimately one unit, or hundreds of units, we’re here to help!
We have a strong belief in real estate investing as a vehicle for growing wealth. We work hard to provide the needed data and guidance to help you make profitable choices.
Book an appointment with us. Reach out now for more info! Call or text Stephanie at (617) 468-7889
The Beacon Group is a client-driven real estate team working in Greater Boston to help clients buy, sell, and invest in real estate. We provide straightforward, analytical advice, empowering clients to make successful and informed decisions. We provide our buying clients with constructive insights, allowing them to identify the right property and enabling them to make purchase decisions with confidence. Our recommendations to both buyers and sellers are specifically crafted to meet clients’ short and long-term housing and financial goals.
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Stephanie Ford-Weems
617.468.7889
1000 Mass Ave Cambridge 02138
27 Boylston St Chestnut Hill 02467