Wednesday, May 25, 2011

Over Priced

A great time to buy Real Estate. With all the corrections in this time
of the unknown. It is a perfect time to buy investment properties. Do
the math with a well]
advised Broker. Kevin Henderson has Twenty Five Business and has the math.

PGI = Potential Gross Income

- Credit Loss 5%

= Effective Income

- Operating Cost

= Net Operating Income

.\. Capitalization Rate 10% Return on Investment and gives you the value
you should pay for the income property

This is a simple and quick way to analyze the investment.

No comments: