Should you invest in Real Estate? What will your actual return be?
It seems like everyone is chasing the same golden rainbow. There is an old saying that a stock bubble can be predicted when your barber provides investment advice, similar could be true in real estate. Just the other day I got a haircut and the stylist was providing advice on investing in real estate and how she is getting into flipping houses and holding properties for rental income. I started to wonder, can anyone make millions in real estate?
Does it make sense to invest in real estate for the long haul given the high prices in many markets?
How can you calculate your return? How can the Net Operating Income and Price to Earnings ratio help?
See the spreadsheets I developed to calculate both P/E and NOI for investment real estate; you can modify the variables to fit your particular situation: Real Estate Investment Calculator
See the full article written by Glen Weinberg, COO Fairview Lending for the CO Biz Magazine
Learn more about Real Estate Investing and financing options for investment properties: fairviewlending.com