North Fort Myers Realty Services Archives - Steelbridge Realty LLC

Guide to Getting a Self Employed Mortgage Loan

admin — Mon, 29 Oct 2018 17:46:49 +0000

Home-buyers Guide to Getting a Self Employed Mortgage Loan.

It’s not a secret that one of the most important factors in getting a home mortgage loan is proving your income. I interviewed Tim Hart with VanDyk Mortgage about this topic. Traditional homebuyers are able to document this by providing their W2 earning statement. Things get a little more complex for a Self Employed Mortgage. Despite, having quality cash flow on hand, self-employed individuals often learn just how much their net income actually is after factoring in tax write-offs and other business expenses. Most lenders base their lending decision for a Self Employed Mortgage on net income.

In the video, Tim Hart discusses options for obtaining a Self Employed Mortgage. Guidelines for Self Employed Mortgage homebuyers have loosened of recent. For example, Tim has a program for Self Employed Borrowers who can use their business bank statements as income.

If you have Real Estate related questions call 239 694 3300 or use the form below.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

During the beginning of the housing downturn, Steelbridge Realty LLC was the Brokerage arm of several private equity entities. We assisted them with asset modeling and market metrics. Many prominent local commercial projects were included in this scope of transactions. in 2012 Jeff and Cristina bought the other partner out and relocated the company to North Fort Myers. It now serves as a boutique style firm that caters to its clients and the community at large.

For more information call 239 694 3300 or use the form below.

Subject: Self Employed Mortgage

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First time home buyers tips

admin — Wed, 06 Dec 2017 04:43:20 +0000

First time home buyers tips: Set a Budget

Exactly How Much Can You Afford?– This isn’t just a discussion between you and your partner after reviewing your bank records. This is an actual evaluation done by a financial professional. Whether you are working with your bank, or a mortgage company, you should do therefore before you start your house hunt. Knowing exactly what amount of mortgage you can qualify for, is the ideal place to start. These professionals will not only inform you of what amount of mortgage you will qualify for, they will also be in a position to educate you on kinds of loans and mortgages, and what may best meet your individual needs. A pre-approved mortgage will allow you to begin your house hunt knowing exactly your price range.

First time home buyers tips: Figure out what you are here to do.

What Must This First Home Have?– Once you have determined what you can pay for a house, you should write a list of priorities. If you are buying the home as a couple, this is a task you should both complete. Break your list up into two sections. Really Need or Really Want. Always try to keep in mind that there are some things you can change in a house and some things you can’t. Location is one thing you should consider at the very top of your list. Once you purchase a home you can’t relocate it. However, the countertop, deck, and appliances can always be upgraded when finances allow. So really put some thought into this task. Keeping your priorities straight will keep you on track.

First time home buyers tips: Assemble your team.

Which Real Estate Professional Should I Use?– There will be plenty to select from so do your research. For certain you will want someone with experience and an agent who knows the neighborhoods and community. A complete time agent will be available to you at opportunities convenient to your schedule. Research and review their marketing strategies, and online presence. Realtors that are active online are also likely to remain up to date on current trends in the industry. When you are hiring any professional, you should ask questions to ensure that they are actually a match for you and your partner. So after you have completed your “Need as well as Want” list, compose down some questions based on that you desire to ask your real estate agent for their input. As always factor in on the location that best suits your life.

Where to Begin along with the Residence Hunt?– Right now which you have your pre-approved mortgage and your real estate salesperson, you’re ready to get started. There will be other professionals (lawyers, home inspectors) to work with throughout the process, and an experienced agent can give you some direction in sorting that out. Many individuals hunt for homes online, and others leave finding the perfect first-time home totally up to their real estate professional. A combination of both works too. Now the fun begins! When you are starting the house hunt, take along your Needs & Wants lists.

Thinking of buying? We would love to sit down and discuss your options.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

For more information call 239 694 3300 or use the form below.

The post First time home buyers tips appeared first on Steelbridge Realty LLC.

Questions to ask before buying land

admin — Wed, 06 Dec 2017 02:22:30 +0000

When buying land always understand what utilities are available.

Does the land currently have utilities? Do not presume that due to the fact that one area of the residential property has a power line that you will certainly be acquiring your electrical power from it.

Also when buying land, focus on the access or lack thereof. How does one access the Land? Does it have roadway frontage? Does it have deeded access?

When buying land enlist a title company or attorney.

Are there any title concerns affixed to the land? You need to work with a title firm or lawyer to investigate the title for you. If there are any types of liens, easements, private roadway access, mineral legal rights, and so on, they will certainly appear throughout the title search.

Exactly what’s the area like? Is the residential or commercial property in the course of growth/development? Exactly what’s occurring on the nearby land?

When buying land always review a survey if you can.

Has a survey of the land been done just recently? Do not presume that old fencing lines as well as timberline on a residential or commercial property program are where the border lines are.

Is there any type of easements going through the land? An easement permits a person the right to make use of the land they do not very own, such as the right to a roadway or water accessibility. If the land you are looking at is under easement, you’re most likely to need to know regarding it. A preservation easement is meant to safeguard as well as limit the land from future advancement and also runs in eternity. Each preservation easement is created particularly for residential or commercial property, so there is plenty of variations between preservation easements on various systems of land.

Does the land perc? In other words, can the land soak up water? You will certainly have to have a perc examination performed in order to discover. Some “old timers” will just take a bucket of water and shovel but as always seek competent and licensed advice.

Thinking of buying or selling? We would love to sit down and discuss your options.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data driven Real Estate solutions in today’s ever changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

For more information call 239 694 3300 or use the form below.

The post Questions to ask before buying land appeared first on Steelbridge Realty LLC.

Tips for Selling a Vacant Home

admin — Thu, 26 Oct 2017 13:46:48 +0000

If you decide that selling a vacant home is the way you really need to go, please take advantage of a few of these tips.

Some buyers enjoy seeing a spotless and blank slate, there are also those who prefer the exact opposite. Some buyers desire to look at how furniture should be placed in a room. The current furniture placement helps them to place their furniture, thereby helping to create a sense of being home in their mind. There can easily be an emotional connection with how a home is actually presented.

Part of the appeal of a home is its warmth and coziness. But when absolutely no one is living there, a home will have a tendency to look hollow and empty. You can always hire someone to stage the home using props, but that is an extra cost that you may not really want to incur. Surprisingly, vacant homes have a tendency to feel smaller.

Selling a Vacant Home Tips:Vacant homes might require special insurance

Selling a Vacant Home Tips:Vacant homes can attract crime.

Let your neighbors and friends know you are selling and are no longer there. A few extra sets of eyes can help to mitigate negative events.
Take extra precautions and install good locks preferably with dead bolts.
It is also an excellent plan to have some lights on timers to help make the home look occupied.
Make an effort to keep the home seasonable cool or warm if feasible. The temperature does not mean as substantially as the humidity. Moisture is definitely bad for real estate, make sure the HVAC runs enough to take the humidity out or put dehumidifiers in the home.
You might also desire to consider installing a security system.Another option is to install home monitoring equipment that allows you to view the interior and exterior remotely.

Also, continue to maintain up the exterior of your home. You do not want to home to appear unmaintained. Not only from a selling perspective but also from attracting crime and vandals.

Thinking of buying or selling? We would love to sit down and discuss your options.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting edge marketing techniques and data driven Real Estate solutions in today’s ever changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

During the beginning of the housing downturn Steelbridge Realty LLC was the Brokerage arm of several private equity entities. We assisted them with asset modeling and market metrics. Many prominent local commercial projects were included in this scope of transactions. in 2012 Jeff and Cristina bought the other partner out and relocated the company to North Fort Myers. It now serves as a boutique style firm cater to it clients and the community at large.

For more information call 239 694 3300 or use the form below.

The post Tips for Selling a Vacant Home appeared first on Steelbridge Realty LLC.

What is a Listing Agent?

admin — Wed, 18 Oct 2017 18:18:56 +0000

What is a Listing Agent? A listing agent is a real estate broker that markets the sellers property. They work to market your home to the highest number of people. As well, they facilitate and boost the chances of a real estate sale. Listing agents use some combination of the MLS, online portals, print, broadcast and online media to expose a property to the public and real estate agents. The most significant task for a listing agent is communication, among other duties.

What is a Listing Agent: Pricing.

A listing agent earns commission for their brokerage services. They make their money not only by helping to market your home but also by helping you price it. The point is, a seller can never really know the actual value of their home. Pricing it too low may mean losses while rating it too high may scare away potential buyers. That is where an excellent listing agent steps in to help.

The listing agent will study and analyze the prices of similar homes in your area to determine what price range best suits your property. A listing agent pays the selling agent brokerage fee if he or she brings a buyer that results in a sale.

What is a Listing Agent: Marketing.

A listing agent uses various channels to market a home to agents and potential buyers. They enter the property into MLS and put up the for sale sign in the yard. Also, listing agents use affordable media such as print and internet for marketing your property. They can also organize a realtor open house; listing agents will take that opportunity to answer questions buying agents might have about your home.

Also, listing agents can also provide you with counsel on practical ways to market and showcase a house for sale.

What is a Listing Agent: Staging.

Home staging can make or break a deal for any property. Listing agents have a responsibility to help in staging the house for a quicker and better sale. Some of their recommendations may include repairs, remodeling, and rearrangement of furniture. A listing agent should bring in a professional photographer or take professional quality pictures (not cell phone) to capture the best features of your home for marketing. A nicely staged home can command a higher asking price.

What is a Listing Agent: Negotiating offers with the seller.

If a home gets many offers, the agent will present all the offers to the seller and advise them on what price to accept. If a contract is accepted, the agents will be responsible for coordinating inspections, negotiating inspection and appraisal and maintaining communication between the agents for a seamless property close.

Listing agents may also suggest to the seller to contact an attorney for an estimate of closing costs. During the closing process, the listing agent works closely with the selling agent for a smooth closing.

If you choose to work with a listing agent, you enter into a legally binding contract that holds you and the agent accountable for specific terms and conditions. Commission rates for listing agents differ, and they may or may not accept your offer. Despite the importance of a listing agent during a real estate sale, the seller has the final say on all matters about his or her home.

Thinking of buying or selling? We would love to sit down and discuss your options.

For more information call 239 694 3300 or use the form below.

The post What is a Listing Agent? appeared first on Steelbridge Realty LLC.

Real estate in North Fort Myers, Florida

admin — Fri, 22 Sep 2017 04:32:17 +0000

If you are interested to buy or sell Real Estate in North Fort Myers, Florida real estate, consider Steelbridge Realty LLC. This is a licensed real estate brokerage company that uses data-driven real estate solutions and cutting-edge marketing techniques in today’s ever-changing environment. The realtor company is located in North Fort Myers, Fl.

During the previous recession, the housing market in the state of Florida was among the hardest hit. However, since then, the Sunshine State made a full recovery. At the forefront of the Florida, market are cities like Fort Myers and North Fort Myers. The real estate market in this area is on par with the more popular counterpart in Miami.

The real estate market in North Fort Myers keeps showing strong signs of growth. The recent rate of property appreciation in this area is of particular interest. Homeowners in North Fort Myers have seen strong equity return to the area. The North Fort Myers, Florida housing market is strongly supported by the local economy.

The region’s job sector keeps supporting both demand and supply. As the entire state of Florida enjoys a strengthening economy, employment numbers are on an upward trend. North Fort Myers is also among the beneficiary of statewide actions that aim to increase employment.

A strengthening economy has led to a renewed interest in focusing on new housing construction in the North Fort Myers area. A dramatic increase has been registered, in particular, in single-family housing permits. However, even in the face of a high appreciation rate, the housing market in North Fort Myers continues to remain affordable. This affordability is instrumental in maintaining steady growth.

A promising job sector and lower prices are attractive to younger Americans. In particular, millennials have found North Fort Myers a desirable location and are purchasing homes in this particular area.

North Fort Myers, located on the northern shore of the Caloosahatchee River, features a refreshing blend of town and country. Thanks to tropical riverbanks, inviting horse farms and ancient moss-draped oaks, true Southern ambiance is exuded by the lush landscape. Horseback riding is a unique way to observe local wildlife and explore the landscape on inland nature trails.

These are just a few of the natural attractions that make this place such a sought-after real estate area. Do not hesitate to call Steelbridge Realty LLC if you are interested to buy or sell real estate in North Fort Myers, Florida.

Thinking of buying or selling? We would love to sit down and discuss your options.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data-driven Real Estate solutions in today’s ever-changing environment. Our group of professionals has decades of experience and has navigated through many business cycles. Our diverse background gives us the tools to guide people toward successful decisions.

During the beginning of the housing downturn, Steelbridge Realty LLC was the Brokerage arm of several private equity entities. We assisted them with asset modeling and market metrics. Many prominent local commercial projects were included in this scope of transactions. in 2012 Jeff and Cristina bought the other partner out and relocated the company to North Fort Myers. It now serves as a boutique-style firm catering to its clients and the community at large.

For more information call 239 694 3300 or use the form below.

The post Real estate in North Fort Myers, Florida appeared first on Steelbridge Realty LLC.

Check list for a hurricane insurance claim

admin — Tue, 12 Sep 2017 15:29:48 +0000

Please use this check list for a hurricane insurance claim. I had significant damage to my home after Hurricane Charley. I wish I would have had this list then. Jeff Tumbarello

Check list for a hurricane insurance claim: assess for safety.

First thing, assess the property to ensure it is safe to access. If you see standing water then proceed with caution or not at all. In our case during Hurricane Charlie, we left the property when the standing water began after the roof began to fail.

Check list for a hurricane insurance claim: document.

The first thing you should do is take an inventory of property. Take video/pictures via your smartphone, take note and detail which components of your property were damaged. Also, make a detailed list in writing. Take special note of your electronics, major appliances, and furniture. Taking pictures or video is the best practice here, having a visual record of the damage and repairs needed, will help the insurance claims process move smoothly. Also, if you did a video and/or pictures before the storm (your best practice) the comparison of the two will help the claim to progress.

Check list for a hurricane insurance claim: secure

As the property owner, it is your duty to ensure no further damage is caused in your property. Moisture is your properties worst enemy, so make temporary repairs to avoid mold and mildew. Cover and patch holes in the roof. Secure broken windows so looters or additional weather does not cause more damage. If the storm caused missing shingles on the roof, make sure you mitigate the damage by installing tarps to protect the property from further damage and water/moisture intrusion. Save all of your receipts in relation to this. I cannot stress this enough, make sure you save everything. Also if you evacuate, record your mileage.

Check list for a hurricane insurance claim: file your claim

File a claim as soon as you can! Get in contact with your agent or your insurance provider company to begin a claim. Permit the insurers adjuster reasonable access to inspect and review the damaged property or records relevant to your claim. The faster they obtain access, the faster the checks will begin to come. Do not begin cleanup, repairs or throw anything away until you notify your insurance company! They will tell you what you can and cannot do.

Check list for a hurricane insurance claim: keep good records.

If your home is uninhabitable, keep a record of any living expenses that may be reimbursed. Without receipts, you will not be able to collect any loss of use coverage throughout the time the house is uninhabitable.

Check list for a hurricane insurance claim: hire well

Once the cleanup and rebuilding begin: Only hire licensed contractors to perform the work. I cannot say this enough. I chipped out a 1,000 Sq Ft of new tile laid by a handyman I hired once. Also, call and get estimates first. Prices will begin to rise as the rebuilding volume begins to affect the market… Also, offer to pay the contractors quickly, they will perform your work first, as many need to build up an operating reserve.

Check list for a hurricane insurance claim: be aware of what you are signing.

Beware of signing a contract with an “assignment of benefits” (or AOB) clause this gives the contractor the rights and proceeds of your insurance claim.

The adjuster that the insurance company sends out is not on your side. Make sure you have your own records and documentation. I hired my own adjustor after Hurricane Charlie. They got me an additional $30,000. I have had two major real estate-related insurance claims. A partial loss due to Hurricane Charlie and a total loss where a rental property we owned burnt down. The partial losses are trickier and very subjective. Make sure you know what you are doing or get someone involved who does.

Check list for a hurricane insurance claim: keep perspective.

In the end, it’s only stuff. You will rebuild and life goes on.

Let us know if we can help.

Thinking of selling? We would love to sit down and discuss your options.

For more information call 239 694 3300 or use the form below.

The post Check list for a hurricane insurance claim appeared first on Steelbridge Realty LLC.

First time home seller tips

admin — Tue, 05 Sep 2017 01:35:07 +0000

First time home seller tips: Hire a seasoned professional.

Just like buying a home for the first time, selling a home for the first time can be daunting. Employ a seasoned Real Estate that recognizes your residence, it’s worth, the location, and also similar sales in the location. Ask yourself this question, do I want a part-time agent entrusted with selling one of my most valuable assets? At Steelbridge Realty LLC, we also try and find the features that compelled you to buy this home. There is a very good chance the next buyer will identify with the same things.

First time home seller tips: You want top dollar.

There are simple methods to make sure you get “top of the market” value for your home:

Make the appearance of your home “Move In Ready.” Today’s culture is extremely aesthetic. This implies that your residence needs to lead them to visualize the buyer making their home there. Place the features of a home in all-natural light.

Develop a peaceful ambiance and setting in your home – declutter it and also place a coat of fresh paint where it is required. Make sure the paints are neutral and appeal to the broadest range of buyers. Curb appeal sets the first impression. You have to step back and see the home thru that of your buyer.

First time home seller tips: Get in front of potential issues.

In many cases getting a home inspection before you put the house on the market is advisable. almost all homes are inspected in this day and age. It wise to get in front of any issues. In a distressed situation this may not be an option.

First time home seller tips: get your ducks in a row from a paperwork perspective.

Find the papers from when you bought the home. A prior title policy may save you some money on the resale due to a reissue credit. Also, having a survey to show potential buyers is a great thing. The more documentation you can provide, the easier you make it for the buyer to buy your home. It will also remind you of any easements that you and/or your buyers should be aware of.

First time home seller tips: The market can be fickle.

In our present market, where supply is not staying on top of demand, appropriately valuing a residence is among the greatest obstacles most Realtors ® will certainly deal with. In many cases, there are not enough comps to have a clear view of the homes market price. This requires going outside of the Fannie Mae norms for appraisals. The lack of inventory causes some homes to be marketed with an educated guess.

A few thoughts on marketing your home:

The pictures are everything. We use a $2,200 camera set up. While cell phones take great pictures. You do not want your agent marketing your home with cell phone pictures.
Understand where your home is being marketed on the internet.
Have a discussion as to the effectiveness of open houses with your agent. In some communities, they are very effective. In some, they are not. A seasoned and experienced professional will help guide you.
Video is the biggest and best thing going on the internet. This is a case where a cell phone is a great tool to market your home. A youtube video if properly tagged and annotated can draw buyers.
How much of a social media presence will your home have?

Thinking of selling YOUR home? We would love to sit down and discuss your options.

Steelbridge Realty LLC is a Licensed Real Estate Brokerage that utilizes cutting-edge marketing techniques and data driven Real Estate solutions in today’s ever-changing environment. Our group of professionals have decades of experience and have navigated through many business cycles. Our diverse background gives us the tools to guide people towards successful decisions.

For more information call 239 694 3300 or use the form below.

The post First time home seller tips appeared first on Steelbridge Realty LLC.

North Fort Myers real estate listings from Steelbridge Realty LLC

admin — Fri, 25 Aug 2017 14:10:41 +0000

If you are looking for real estate listings in North Fort Myers, look no further than Steelbridge Realty LLC. Steelbridge Realty LLC is a licensed real estate brokerage that has been in the business for years now. Located in North Fort Myers, Fl 33903, the brokerage company has helped thousands of people to buy, lease and/or dispose of their property and helped people find some of the best deals. Whether one is looking for a decent home to live in or a commercial property for business, the company will gladly connect the person to the best North Fort Myers Real Estate Listings. Based on client reviews, Steelbridge Realty LLC has been rated as one of the most reliable real estate broker anyone in the area.

Which Types Of Properties Does Steelbridge Realty Company Deal In?
Being an established company with many years of experience, Steelbridge Realty deals in brokerage of virtually all types of properties. From simple rental apartments to single-family homes, villas, condominiums even multi-family projects and large commercial projects, there is a range of properties that one can opt to buy or sell. Buyers are advised to check on the company’s current North Fort Myers real estate listings to identify the desirable homes or properties.

Are North Fort Myers Real Estate Listings Costly?
When it comes to the pricing of a real estate home or property, there are many aspects that come into play. The condition of the property (both inside and outside), the number of units and the size of land or living area are the major determinants of the price of the property. A single-family home would obviously not sell at the same price as a multi-family home or commercial property. Other determinants of price include how the property compares with recently sold properties (in the last 3 to 6 months) and how long the similar properties have existed in the market. The location, such as school district, corner lot, street traffic and proximity to highways all dictate the price at which one is going to buy or sell the property. However, in the property listing properties are available for purchase or sale for as low as $9,950 and can go up to $1,000,000 and beyond. One thing inherent to North Fort Myers is a lower cost to keep. There are two main factors when buying and holding real estate. The cost to buy and the cost to keep it. Being in unincorporated Lee County, North Fort Myers Real Estate Listings generally have a lower cost to keep.

Is The Process of Renting or Leasing a Property in North Fort Myers lengthy?
Renting a home or leasing a commercial property in North Fort Myers takes a matter of days or might even take less than 24 hours. The process is not as lengthy as one would imagine. Once the owner’s property is put on the Steelbridge listing, it will be open for potential tenants or lessees to bid. The process of renting or leasing a property only takes a few steps that require both the property owner and tenant to sign a lease and other relevant documentation including the owners/agents review of the background check.. Upon doing that, the tenant or leaser can move in immediately. It’s as simple as that.

Conclusion
Acquiring or selling a property has never been this easier. With the current marketing trends and data-driven real estate solutions, property owners and buyers have an easy time closing deals. And with reliable and efficient real estate brokers like Steelbridge Realty Company, buying, selling or leasing property is just a breeze. People can never ask for more.

At Steelbridge Realty we are very knowledgeable and have a deep experience in the current mix of North Fort Myers Real Estate Listings. Many of them are OUR listings!

Need help with North Fort Myers Real Estate Listings?

Please call 239 694 3300 or use the form below:

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Investment property analysis

admin — Thu, 24 Aug 2017 05:08:23 +0000

Investment property analysis: Rentals.

Rental properties are among the best investment options available to investors at about every income level imaginable. Rental properties bring in monthly revenue, and can be managed fairly easily. This, combined with the power of appreciation, leverage, and tax deductibility, makes real estate the ideal investment. One of the most important things any investor must do in the course of his business is to determine the actual value of any property considered for purchase. There are certain things that every investor should look into before purchasing a property in order to make sure they are truly getting a solid investment.

Investment property analysis: The property itself.

First and foremost is to run the numbers. Add up the monthly rent and subtract the monthly expenses such as the mortgage (if you did not pay cash), property taxes, insurance, water/sewer, etc. If you can get a profit after deducting all the expenses, the property in question can be put on the proverbial short list. You will also want to look at other similar houses for sale in the area to make sure you are getting a fair price.

Investment property analysis: You get what you inspect.

Another critical task is to coordinate the property inspection. The idea is to hire a licensed inspector to make sure the property does not have any hidden problems. These people are trained to look for warning signs and damaged areas of the building. They will be able to tell you whether there are any major structural problems with the property that will affect its value. This is critical because you do not want to get stuck with a structurally questionable property. You will also want to factor in the amenities available in the property. Things like appliances, landscaping, extra closets, a nice yard, a garage, etc., will all improve the perceived value of the property. Tallying up the value of these amenities, along with your analysis of the numbers and the property inspection, should provide everything you need to know about the property itself to make an informed decision.

Investment property analysis: The surrounding neighborhood.

Another factor that impacts value is the neighborhood in which the property is located. Few people want to move into a neighborhood with properties located near railroad tracks or busy streets. It is always smart to take inventory of these types of annoyances and statistics into consideration when determining a property’s true value.

Another way to evaluate the desirability of a neighborhood is to analyze the number of jobs available in the area. If there are a lot of jobs, the area will be stable and will have enough renters too. Most people don’t want to live far away from where they work, so they will be willing to pay more money each month to live somewhere more convenient. If the property is located near a lot of important sectors and business areas, then the value of that property will usually be much higher than it would otherwise.

Investment property analysis: Metrics

Here are just a few metrics to use when doing investment property analysis.

Gross Rent Multiplier:
- Investment or rental properties should produce income which usually comes in the form of rent. To quickly and efficiently compare properties, we will make all the figures annual. The total annual expected rent is the Gross Income. This is also called Gross Scheduled Income because it assumes the investment is always rented. You do not place a vacancy rate on this set of metrics. Many investors look at the Gross Rent in connection to the price to get a ratio called the Gross Rent Multiplier (GRM). If you divide the value or price of a property by the Gross Rent you get the GRM. We use this metric as a first look. Once the first look is promising, then we dive into deeper metrics.
CAP Rate:
- The capitalization rate or Cap rate is the rate of return on a real estate investment property derived on the income that the property is expected to generate. Keep in mind that a property’s cap rate is simply its annual net operating income (NOI) divided by purchase price, and represents the unlevered annual return on the asset. For example, if a building is purchased for $5,000,000 purchase price and it produces $500,000 in positive net operating income (the amount left over after fixed costs and variable costs is subtracted from gross lease income) during one year, than: $ 500,000/ $5,000,000 = 0.10 = 10%. The asset’s capitalization rate is ten percent; one-tenth of the building’s cost is paid by the year’s net proceeds.
Cash on Cash return:
- The cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, expressed as a percentage. Cash on cash returns is commonly used to evaluate leveraged transactions. This metric also could be used to evaluate non-levered deals. In reality, I personally use this metric the practically, in my day to day real estate investing. Whether it’s a flip or a rental property. For example, when an investor purchases a rental property, she might place down only 10% for a cash down payment. Cash-on-cash return measures the annual return the investor made on the property in relation to the down payment only.

Investment property analysis: The bottom line.

Determining the value of an investment property is easy if you know what to look for. Obviously, any property considered for purchase must be fairly priced, and be able to cover the monthly expenses. Beyond that, make sure the property is structurally sound and the neighborhood is desirable, and you will be well on your way to determining true value. Investing in real estate requires extensive research and knowledge of what’s going on in the current real estate market. It is important to determine the value of the property. In many case,s the price of the property does not represent the valu ofe the property. The value for an investor is what it yields. When your investing strategy is focused on the price another person would be willing to pay. This activity more resembles speculation than investing.

At Steelbridge Realty we are very knowledgeable and have a deep experience in investment property analysis.

Need help buying an investment property and with Investment property analysis?

Please call 239 694 3300 or use the form below:

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