Cash on Cash
Cash on Cash Cash flow before taxes / Initial Equity Investment This ratio measures how much cash is earned in relation to how much cash was invested into the property. This measure determines the yield estimate for an investment purchased for annual income and not appreciation. The benefits of this ratio is that it is […]
Capitalization Rate
Capitalization Rate Capitalization Rate = Net operating income / Price. Property Value = Net Operating Income / Market Capitalization Rate This measure is used to determine value in commercial real estate appraisal. It allows one to determine the price of a property by using diving the net operating income by the market capitalization rate. […]
Gross Rent Multiplier
Gross Rent Multiplier Price / Potential Gross Income This formula is used to quickly survey the market for opportunities where the price of the property is low in comparison to the potential rental income. The advantage of this formula is that it requires very little information to calculate. The disadvantage of this formula is that it […]
Investment Ratios
Investment Ratio Investment ratios are used in real estate to determine if a property is price favorable in comparison to the competition. It allows one to survey the market for potential opportunities. Over the next few days I’ll share some common investment ratios used in real estate. Looking to create your investment strategy? I can help […]
Appraisal Approaches to Value
Appraisal Approaches to Value There are three approaches appraisers and real estate professionals use to a value a property. Sales Comparison Approach This approach is the most commonly used approach in appraisal and sale of residential properties. The sales Comparison Approach uses sales prices as evidence of the value of similar properties. The price at which […]
Investment Value
Investment Value Investment value is the value of the expected benefits of a property to a specific user. This value is based on factors such as individual requirements, investment alternatives, tax rates and the ability to finance the property. Looking to create your investment strategy? I can help with that. If you are looking to […]
What is Market Value of a Property?
What is Market Value of a Property? Market Value of a property is the most profitable price that a property would bring in a competitive and open market. This assumes the following: Buyer and seller are motivated. Both parties are well informed or well advised and acting what they consider to be […]
Spring sales hold steady in Fraser Valley real estate market
Spring sales hold steady in Fraser Valley real estate market SURREY, BC – Despite persistent inventory shortfalls, housing sales in the Fraser Valley remained steady in April as buyers took advantage of the continued pause in interest rate hikes. In April, the Fraser Valley Real Estate Board (FVREB) processed 1,554 sales on its Multiple […]
SOLD! 120320 Ditton Street Maple Ridge
JUST SOLD! 20320 Ditton Street Maple Ridge Bedrooms: 3 Bathroom: 1 Price: $995,000 This Southwest Maple Ridge rancher is an ideal forever home for the right individuals, and fortunately, I know just who they are. It’s a fully detached property that offers absolute privacy and independence, without the added costs or restrictions of […]
SOLD! 135-9012 WALNUT GROVE DRIVE
JUST SOLD! 135-9012 Walnut Grove Drive Bedrooms: 4 Bathroom: 2 Price: $874,888 Exciting news! I just helped my clients sell their home for top dollar! It was a pleasure working with them and seeing their hard work pay off. If you’re thinking about selling your home, let’s talk. I’m here to help you get […]
