All Real Estate Investing Articles - Page 10

Piggyback Loan: 80/10/10 & 80/15/5 Mortgages

By Allison Bethell on November 10, 2018 | Real Estate Financing, Real Estate Investing, Ultimate Guide | Comments (0)

A piggyback loan (aka second trust loan) is using two loans to finance the purchase of one house with less than 20 percent equity. The most common piggyback mortgage is an 80/10/10 loan. You’ll borrow 80 percent of the purchase price with a first loan, 10 percent with a second loan, and provide a 10…

Cap Rate vs. ROI vs. Cash-on-Cash Returns: A Real Estate Investors Guide

By Allison Bethell on November 10, 2018 | Real Estate Financing, Real Estate Investing, Versus | Comments (0)

Real estate investors frequently use three metrics to measure the performance of an income-producing property: capitalization (cap) rate, return on investment (ROI) and cash-on-cash returns. It’s recommended to use all three to get the best understanding of a property’s potential rate of return. The ROI formula is annual return divided by total investment. When to…

20 Types of Tenant Scams Every Landlord Needs to Know

By Benilyn Formoso - Suralta on October 15, 2018 | Property Management, Real Estate Investing, Tip List | Comments (0)

A number of tenant scams happen regularly, victimizing landlords who do not have effective procedures in place for screening renters, collecting rents, and writing the right contract. These scams can pose a great risk to the business. We spoke with the experts who shared the different types of tenant scams every landlord should know and…

Adjustable Rate Mortgage: ARM Rates, Types & More

By Allison Bethell on October 3, 2018 | Real Estate Financing, Real Estate Investing, What is | Comments (0)

An adjustable rate mortgage (ARM), or variable rate mortgage, is a home loan that has a periodically changing interest rate. Typically, the initial rate on an adjustable rate mortgage is lower than on fixed rate mortgages, averaging 4.38 percent. That rate can climb during the loan term, making ARM loans more unpredictable and riskier over…

Free Cap Rate Calculator for Real Estate Investors

By Allison Bethell on October 1, 2018 | Calculators, Real Estate Financing, Real Estate Investing | Comments (0)

A cap rate is a rate that helps real estate investors evaluate an investment property. Our free cap rate calculator generates a property’s net operating income and cap rate based on inputs including property value, gross income and operating expenses. Investors can then decide whether the property is a good value. Capitalization Rate Calculator Rule…

Balloon Mortgages: Rates, Payment & More

By Allison Bethell on September 12, 2018 | Real Estate Financing, Real Estate Investing, What is | Comments (0)

A balloon mortgage is a loan in which a large portion of the principal is repaid in one payment at the end of the term. Investors use a balloon mortgage to qualify for a higher loan amount, lower rates, and lower monthly payments. Balloon mortgage rates typically start around 4.5 percent with five- to seven-year…