A real estate boss or real estate investor at a lower level is someone who is active or passive investing in real estate. An active investor can buy property, make repairs and/or increase property, and then sell it for a profit. A passive investor might hire a real estate company to find and manage an investment property for him. Typically, investors choose real estate for several reasons: cash flow, capital appreciation, depreciation, tax benefits and leverage.
Appreciation occurs over time, in general, although investors can "impose equity" in the property by making improvements to it or the surrounding environment to increase its value. In general, residential real estate is rewarded with a "comparable selling" method that estimates property values ​​on a substitutionary principle. This method estimates property values ​​by comparing subject properties with similar properties sold in similar locations over a recent time period.
Depreciation is one of the many benefits that are given to real estate investors. Although the property actually increases in value, the government allows owners to systematically depreciate the property for the life of the projected benefits. Depreciation is the allowable tax deduction. In addition to depreciation, an investor will usually claim the interest portion of his monthly mortgage payment as a tax deduction.
Leverage is a compelling reason to invest in real estate. If an investor uses 100% of the cash to buy a house worth $ 100,000, and the house increases in value by $ 5,000 in one year, then the investor makes a 5% return (assuming no other costs in this case). However, if an investor earns 95% of the financing, only $ 5,000 cash will be needed at the closing table, and the bank or other lender will borrow the remaining $ 95,000 to acquire the property.
Assuming the same $ 5,000 increase, a $ 5,000 investor cash contribution would result in a $ 5,000 equity increase in one year, 100% profit. Leverage works the opposite way as well. A $ 1,000 decrease will result in a negative 20% return on a $ 5,000 investment.
Real estate investments have become very popular in recent years due to rising property values ​​and low interest rates. However, Deflation in property values ​​or a sharp rise in interest rates will greatly dampen the market.
Video Real estate entrepreneur
Famous real estate investor/entrepreneur
- Richard LeFrak, (a New York-based real estate entrepreneur)
- Paul Allen (founder of Microsoft and the Washington-based firm)
- Donald Bren (US-based real estate developer)
- Donald Sterling (California-based real estate developer and former owner of Los Angeles Clippers)
- Jerry Buss (entrepreneur, former chemist, and majority owner of Los Angeles Lakers)
- Gordon Campbell (Canadian diplomat, politician, teacher, and former real estate developer)
- Barbara Corcoran (entrepreneur and Shark Tank investor based in New Jersey)
- Jim Bob Duggar (entrepreneur, writer, and television personality based in Arkansas, especially known for the 19th Children and Counting television show)
- Jonathan Gray (Head of Global Real Estate and member of the Board of Directors of the Blackstone Group)
- Leona Helmsley (businessman and hotelier living in New York)
- Walter J. Hinneberg (German shipping king and landowner under 40 Wall Street currently known as The Trump Building)
- Carlos Slim Helu (Mexican businessman)
- Thomas S. Hinde (Founder of Mount Carmel, Illinois, and owner of investment properties in Illinois, Indiana, and Ohio)
- Li Ka-shing (Hong Kong-based entrepreneur)
- Diane Kennedy (Reno-based CPA, bestselling real estate and tax writer, adviser Rich Dad, real estate investor)
- Robert Kiyosaki (Phoenix-based entrepreneur and author of the Rich Dad Poor Dad book series )
- Lars Kovala (US real estate entrepreneur)
- Robert Kraft (Boston-based businessman and majority owner of New England Patriots)
- Jared Kushner (publisher and self-publisher)
- Sharon Lechter (businessman and co-author of the Arizona-based Rich Dad Poor Dad series )
- Louis Lesser (real estate developer and California real estate business)
- Master P (musician and entrepreneur of New Orleans)
- Paul McCallum (a football player, real estate agent, and Vancouver-based entrepreneur)
- Shaquille O'Neal (retired NBA basketball player)
- Jorge M.PÃÆ' Â © rez (Florida real estate developer and author)
- Arnold Schwarzenegger (California-based entrepreneur, actor in the film series Terminator , former California governor, bodybuilder)
- Bernard Spitzer (New York-based real estate developer and lawyer father and former New York Governor Eliot Spitzer)
- Donald Trump (US-based real estate developer and entrepreneur based in New York and US Northeastern) and 45th President of the United States)
- Steve Wynn (casino businessman and real estate developer of New York)
- Sam Zell (Chicago-based real-estate entrepreneur and publisher)
- William Penn (17th century real estate entrepreneur, philosopher, writer and Quaker)
- Frederick Hinde Zimmerman (founder of Grand Rapids Hotel and real estate investor)
- Mort Zuckerman (magazine editor, publisher, and real estate entrepreneur)
- fiction: Bruce Wayne (industrialist, real estate investor, and superhero)
- fiction: Joseph Joestar (real estate investor)
Maps Real estate entrepreneur
See also
- Private investment capital subscription
- Real estate investments
Source of the article : Wikipedia
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