Be Careful of Some Commercial Real Estate Listings

One thing I’ve noticed lately with commercial real estate listings across the country are the highly optimistic pro forma statements brokers use to justify the price of the property they are listing. I realize the brokers represent the seller and have a fiduciary responsibility to get the highest possible price. I get that. No one […]

Interest Rates of the Early 1980’s Compared to Interest Rates Today

Looking back at the early 1980’s, the investing environment was an absolute bonanza for long-term investors. At the time, it probably did not seem that way. Interest rates and inflation were EXTREMELY high. Because of these factors, the economy was not doing particularly well. Getting a mortgage on a home was not exactly a great […]

Why I Don’t Like Bonds as Long Term Investments, Particularly for Young Investors

Bonds are often talked about as being a very “safe” investment and something all investors should have in their portfolios. Many of us have heard the old adage still espoused by many financial advisors that you should take your age and subtract it from 100 and that should be the percentage of your portfolio invested […]

Why Some Investors Buy and Sell Real Estate Versus Buying and Holding

This topic is frequently debated amongst real estate investors and on various web forums. Both methods work well, although if executed properly, buying and selling can lead to very lucrative returns.  A lot of investors like to simply buy and hold to collect cash flow until the loan is paid off and have the income […]

Why Small Expenses Matter in Commercial Real Estate Valuation and Why it is Worth it to Hire a Property Manager

Many real estate investors tend to ignore the small expenses when investing in a commercial property such as an apartment building and instead focus only on the larger expenses such as property management, maintenance, insurance, and taxes. While this is prudent and a very worthwhile exercise to get these expenses as low as possible, small […]

Reasons Many People Don’t Achieve Success in Investing

In my opinion, building wealth through investing is fairly simple provided a person has some education, time, and a reasonable temperament. There was a survey taken many years ago that showed that even though the S&P 500 has returned somewhere between 9-10% historically, most investors achieved returns of 2-3% per year on average. Why don’t […]