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Underwriting

Underwriting is the financial analysis of a property. Detailed due diligence is always done after the property goes under contract, but underwriting is done to assess the feasibility of an asset to see if it meets the basic financial criteria before the buyer submits an offer. Your broker will typically bring you an OM(offering memorandum)…
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The 4-pronged approach to return generation

Real estate provides the investor with many ways generate returns. It involves what I call the four-pronged approach; principle pay down, cashflow, appreciation, and tax advantages. Principle pay downThis is where the loan amount gets paid down each month from the mortgage payment. The mortgage is paid by the rents collected from the tenants, and…
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