ProAPOD®

Real Estate Investment Software Blog

Financial leverage is a term associated with financing that refers to the use of borrowed funds to acquire investment property. When compared to the value of the property, the amount of leverage increases as the amount of borrowed funds increases, and conversely, decreases when the amount of borrowed funds decreases.

There are buyers galore who would like to increase their return on investment and are looking for real estate investment opportunities; virtually hundreds of people who are sitting on thousands of dollars deposited in accounts earning less than two percent and open to investment properties that could earn them more.

I recently modified an article I wrote several years ago that defines cap rate and gross rent multiplier (GRM) in order to conclude which best determines rental property value and measures financial performance. The article has been posted on our ProAPOD website on our Articles page. Here’s are some excerpts:

Understanding the motivation that drives investors to buy rental properties is paramount to real estate agents seeking to make money with real estate investing.

Investment property comes in all shapes and sizes, but what happens when it comes within an HOA community? HOA communities are neighborhoods regulated by a Home Owners Association. The organization is run by members of the community who enforce the neighborhoods rules.

by Andrew Stratton