Investment Blog

The Basics of Investing

By Kevin Schill

There are two participants to real estate investing, the user, and the investor.   Users are those who make decisions regarding space to use for their needs.  Investors make decisions regarding investment in properties that are to be leased to users.   This gives us the basis to analyze a real estate investment to best suit individual investor needs.

There are three major classes of assets:

·              Bonds

·              Stocks

·              Real Estate

Each class has its balance of risk and return, with real estate generally falling in between stocks and bonds.

When investing in real estate the goal is to generate periodic income and/or profit on the sale.  We use a cash flow model to help us identify an investment’s profit potential.  This model will help us define initial investment,  expected operational cash flows, sale proceeds, and the holding period.

If you would like to discuss your real estate investment goals, lets sit down and see what opportunities might best meet your needs.

© Kevin Schill 2018