How to increase real estate returns?

T

totallyproperty

Administrator
Staff member
Some quick pointers to increasing real estate returns:-

Never over pay for a property - be prepared to walk away if it is not good value
Always have an exit plan
Make the property "easy on the eye" with cosmetic improvements
Always buy in sought after areas or spill over areas
Research the real value of your property
Don't hang on for the last dollar from your property - sometimes it is best to bank a profit and move on
Don't just follow the crowd - do your own homework

I will add more when I get a moment.

Regards,

Mark
 
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J

JenniferKelly

New Member
Need some suggestions.
Have the proper market knowledge, and grap the opportunity when the price of the real estate is low. According to the speculations made, the price of the property is going to increase in the near future. You can make huge profit, when you sale that property.
 
S

singhsaloni

New Member
Leverage is the number one reason you can get such great returns on real estate. First let me define leverage in the way it applies to real estate. You use leverage when you buy a $200,000 property with a 20% down payment and borrow the rest of the money from the seller or the bank. If you paid cash for the property you would need to come up with 200,000 and change at closing to take over a piece of real estate. You would be using no leverage and you would be looking for a return on your capital that would be similar to what you would get in other investments. If you made $2400 in rent per month and after expenses put $1500 cash in your pocket each month you would make $18000. This $18,000 would be your yearly return on capital invested. It is a good return and it is possible to make a good living buying property for cash. You can calculate your cash on cash return by taking your $18,000 profit divided by your $200,000 investment.
 
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