What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities
16
Jul
By Kyle Muth
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Commercial Real Estate, Loan Programs, Real Estate Investments, ,

What Is a CMBS Loan? Your Guide to Commercial Mortgage-Backed Securities

Those in the business of buying and selling commercial real estate have likely heard about CMBS loans. This is a guide to how CMBS loans work, the ways in which they are different from traditional commercial loans, and the advantages and disadvantages of choosing this type of financing. CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily living communities, office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral. That said, a CMBS loan is different from a traditional…
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Mixed Use Properties — Why They Are a Good Investment
06
Jul
By Kyle Muth
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Real Estate Investments,

Mixed Use Properties — Why They Are a Good Investment

Maybe you’ve never heard of the term mixed-use property, but we can guarantee you’ve been in one. Mixed-use properties exist all over the place – these properties are real estate developments that have different uses (retail, residential, offices, hotel, etc.). In a mixed-use property, the separate uses all compliment each other. Mixed-use properties come in all shapes and sizes: they can be a single building or take up an entire neighborhood. Right now, there is an increasing number of real estate investors looking to invest in this type of property, and you can be one of them! Investing in these…
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15 or 30-Year Loan for an Investment Property: What’s the Best Move?
17
Jun
By Kyle Muth
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Mortgage, Real Estate Investments, ,

15 or 30-Year Loan for an Investment Property: What’s the Best Move?

There's a lot to be gained by buying an investment property. Not only can you take in monthly rental income from tenants, but you can also hold on to that property until its value increases and sell it at a profit.  However, many real estate investors can't buy a rental property outright. If you're looking to take out a mortgage for your investment property, you may be wondering whether to opt for a 15-year loan or a 30-year loan. There are pros and cons to both options. Here's what you need to know.  The 15-year mortgage The primary benefit of…
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What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?
06
May
By Kyle Muth
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Real Estate Investments, ,

What is the 2% Rule? Is It a Smart Real Estate Investing Strategy?

Many real estate investors have heard of the 1% Rule, but what about the 2% Rule?  The 2% Rule states that if the monthly rent for a given property is at least 2% of the purchase price, it will likely cash flow nicely. It looks like this: monthly rent / purchase price = X.  If X is less than 0.02 (the decimal form of 2%) then the property is not a 2% property. If it is 0.02 or greater, then you’ve found a 2% property. This can then shed some light on whether or not a property is likely to…
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What is a Rehab Loan?
05
May
By Kyle Muth
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Loan Programs, Real Estate Investments, ,

What is a Rehab Loan?

A rehab loan is also referred to as a renovation loan and it will allow property buyers to finance both the purchase / refinance and rehab of a property through one mortgage. If you are planning on flipping houses for profit, you will likely have to make significant repairs and renovations to the house. In order to do this, you’ll probably need a rehab loan to pay for the property and its repairs so you can sell it at it’s new value.  There are three main types of rehab loans for investors you should know about: 1. A FHA 203(k)…
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15
Apr
By Kyle Muth
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Home Improvements, Real Estate Investments,

Which Home Improvements Add to Your Cost Basis?

Knowing how to calculate your cost basis can save you money on real estate taxes.  Real Estate Investor Tip: When you sell a property at a profit, you have to pay capital gains taxes on the sale. However, your capital gain isn’t the difference between the price you paid for the property and the price you sell it for. There are several other expenses that add to your cost basis. Knowing what expenses can and cannot be added to your cost basis helps you accurately calculate your capital gain on a real estate sale. This can save you significant money…
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12
Apr
By Kyle Muth
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Real Estate Investments,

Is Buying a Multifamily Property a Good Investment?

When deciding whether to purchase a multifamily property (and what kind to purchase), it’s important to review the benefits and disadvantages of investing in multifamily properties.  While we’ll address this in a traditional pros and cons fashion, it may be equally effective to look at multifamily investing through a different lens; by analyzing its risks, benefits, and the required time commitment involved. To put multifamily investing into a reasonable context, it needs to be compared to the alternate investments one could purchase — say, stock in a well-known company. For instance, if we compare purchasing a 10-unit apartment property for…
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