The Commercial Real Estate Podcast

The basics of investing

May 08, 2021 The Mindful Investor
The Commercial Real Estate Podcast
The basics of investing
Show Notes

The basics of investing 
1. job growth: more demand than supply
 2. the real estate cycles: recovery, expansion, hyper supply and recession with supply of rentals as an important indicator
 3. leverage: getting debt. Say you buy a property for $1M, put a 30% mortgage and through forced appreciation increase the value by 10%, you went from $1M to $1.1M or from $300k of invested capital to $400k ie 33% increase
4. budgeting: important to reinvest in the properties, initially you may be focused on growth but to maintain units rented, you need to reinvest