Real estate returns come from rental income, appreciation, and leverage. Understand all three.
Property investing is different from most businesses because leverage amplifies returns (and losses). You'll learn rental yield (annual rent as % of property value), gross yield vs net yield (net accounts for voids, maintenance, tax), LTV (loan-to-value — how much are you borrowing?), and cash-on-cash return (annual cash flow as % of your actual cash invested). You'll understand void rate (how long between tenants?), and how stress-testing shows what happens if interest rates rise or the market falls.
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Part of this AskBiz Academy learning path.
AskBiz Academy
Cash flow forecasting predicts when money will come in and go out of your business. It is the most important financial tool for avoiding insolvency — profitable businesses fail for lack of cash every day.
5 min read · Beginner
Part of this AskBiz Academy learning path.
AskBiz Academy
Follow this learning path to master property & real estate: yield and risk.
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