If you’re new to this blog, the first thing you’ll want to do is listen to the dulcet tones of my voice on episode 30 of the BiggerPockets podcast. Special thanks to Brandon Turner and Joshua Dorkin for hosting me!
China is fascinating. This is a country that has existed since at least 2000 BC. I lose perspective with such large numbers, so let’s put it in different terms. 2000 BC was the golden age for the Egyptian Pharaohs. In the following years, the world has seen Ancient Greece, Alexander the Great, the Roman Empire, the Dark Ages, the creation of Europe, the Renaissance, and the rise of America. Throughout this turmoil, China remained one sovereign country. When we’re building wealth that will last for generations, we can learn a thing or two from China.
You work full time, but you keep hearing you can make large sums of money flipping houses. How hard could it be? Buy property, fix property, sell property. Even if these steps are time consuming, the payday at the end makes up for it. Right? How much house flipping profit can you expect?
I’m always shocked when I’m chatting with an established real estate investor and the conversation takes an unexpected turn.
Social interactions aren’t my strong suit, no new information there.
What’s supposed to be surprising is the number of real estate investors who don’t understand depreciation. Their approach is: buy property, make money, dump receipts on accountant’s desk and receive tax return.
I recognize that while I don’t have a degree in accounting or finance, my current and former careers forced me to learn about those subjects. Not everyone has that luxury.
So, I thought I’d take a crack at explaining the basics of depreciation…with comics.
Here at Pear Tree Property, we offer a $25 a month discount to new residents if they sign a two year lease. If the resident leaves before the lease is up, then that $25 a month is added to their account balance when we get a judgement. It sounds like a simple win-win scenario – the resident pays less and we have a lower turnover.
How does it pan out in practice? Does providing an incentive to sign a two year lease make sense? This post is letting out a bit of my inner stats geek, but I hope you find it interesting.
When I bought my first home at the age of 18, I had recently read some investment books by real estate gurus and saw nothing but dollar signs and easy living.
It was only much later that I realized something that should have been obvious:
Real estate gurus are full of it.