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.
In my previous three posts, I discussed why we invest in ruralrentalreal estate. Some of you might be wondering “Kenny that’s great, but Why are you investing in the first place?” The answer is simple: passive cash flow.
At Pear Tree Property, we invest in Rural Rental Real estate. Or, the three R’s. In the previous blog we discussed why invest in Real Estate. Here I’ll talk about why you should invest in rental property.
Welcome to my first blog post! Let’s start by explaining what we do at Pear Tree Property, and why we do it. We invest in Rural Rental Real estate. I thought it would be “fun” to take a look at each of these three R’s. So let’s start with the question: why should you invest in real estate?