There is no such thing as a “risk-free” real estate investment. With any return, there is risk. Successful real estate investors typically know and understand two essential things: The financial objective or why they are investing in real estate, .i.e., is it for future cash flow, preserve...
There is a common character trait I see in successful people that achieve something of value: the willingness to step out and take a risk.
There are numerous benefits to investing in a mortgage fund. Click here for a list of benefits. However, one benefit not often talked about is a hedge against inflation. In the last year, to fight the COVID-19 pandemic, the government injected over 2.5 trillion dollars into the US economy. These...
At what point do you decide to refinance a loan based on the interest rate? A question most of us have been asking, given the low-interest-rate environment we have been in for a while. Making the right decision to refinance can save you money, but if not done at the appreciate time and for the...
A great deal of money can be saved by structuring the right loan terms on your real estate transaction. It is the opportunity cost of making the right decision where the money is saved. When choosing the right real estate loan terms, it’s not all about the lowest interest rate. It’s wise not to...
What I currently see on the horizon for San Diego real estate is based on information I receive from conversations with real estate owners, lenders, borrowers, buyers, and sellers in the San Diego market. This provides valuable information as to what changes are developing.
Albert Einstein said: “Compound interest is the eighth wonder of the world. He who understands it earns it … he who doesn’t …pays it.” Compounding is one of the most overlooked and yet powerful tools to create wealth.
The term “Mortgage Fund” is often a generic term used for both a mortgage and a trust deed fund. A trust deed is like a mortgage but has the advantage of allowing lenders to foreclose on the property without going through a judicial process. California is a Trust Deed state, and therefore in...
Over my career of 30 years in the real estate financing business, I have helped hundreds of investors achieve their financial goals through investing in real estate. I’ve learned some valuable lessons throughout the years and would like to share them with you. 1. Three Things Make...
The right real estate financing can make the difference between a good project and a great one. In today’s economic environment obtaining the right loan with the best lender can be a challenge. You can speed up the loan process by asking the right questions upfront when searching for the...
A crisis produces opportunities. 2020 has been one crisis after another. With businesses altering the way they run, government policy continually changing, and people’s living and working environments shifting, it all impacts the real estate market. Most market statistics are not current...
Wise investors look at the big picture when analyzing the feasibility of a real estate investment opportunity and consider private money financing as one tool in accomplishing their goal. Private money works best for the short term, bridge financing opportunities where value is created in...
Fidelis Private Fund is a mortgage fund that invests primarily in short-term bridge loans. Our business model is based on years of experience and a proven strategy. In this article, I share some of the key advantages and how that business model ultimately benefits our investors while providing a...
There are two useful tools for valuing and comparing the feasibility of real estate investment opportunities: the capitalization rate (Cap Rate) and the cash-on-cash return. The two metrics use a snapshot of annual pre-tax income as a basis to determine the value and evaluate the feasibility of...
1) Know how Net Worth is Calculated Net worth is the difference between your assets and liabilities, calculated as: Net Worth = Total Assets – Total Liabilities While your liabilities are easy to calculate it can be challenging to determine accurate asset values. It is best to make...
