Author: Property Gangster

The 1% Rule?

The one percent rule is a guideline frequently referenced by real estate investors when evaluating potential property purchases. This rule of thumb states that the monthly rent should be equal to or greater than one percent of the total purchase price of an investment property. learn.roofstock.com Basic 101 math, buy a house […]

Refinance

Getting a new mortgage to replace the original is called refinancing. Refinancing is done to allow a borrower to obtain a better interest term and rate. The first loan is paid off, allowing the second loan to be created, instead of simply making a new mortgage and throwing out the original mortgage. –mortgagecalculator.org The main reason […]

Slumlord

Slumlord Law and Legal Definition. A slumlord is an unscrupulous landlord who milks a property without concern for tenants, neighborhoods or their own long term interests. Slumlords overcharge for property in poor neighborhoods that is kept in poor repair and allowed to deteriorate. –US legal.com Pretty straight forward here, this is a […]

The Power of Leverage

The Power of Leverage

This one concept is what makes real estate an incredible way to build wealth. Leverage is a very important concept for becoming a property gangster. There’s gonna be a little math here but don’t worry as long as you understand the general principle that’s all […]

Partnering with Uncle Sam

Partnering with Uncle Sam

What if I told you that anyone can partner with the United States Government to invest in Real Estate? Lets get crazy and get the government to…… guarantee most if not all of the income from the investment? help you maintain the property with regular […]

1031 Exchange

“The term 1031 Exchange is defined under section 1031 of the IRS Code. (1) To put it simply, this strategy allows an investor to “defer” paying capital gains taxes on an investment property when it is sold, as long another “like-kind property” is purchased (within a certain time frame) […]

Capital Gains

A profit from the sale of property or an investment.‘a tax is imposed when individuals part with an asset and make capital gains on it’ -lexico.com When you sell your real estate investment you have a capital gain, provided there is in fact a “gain” […]

Adjustable Rate Mortgage

Also referred to as a ARM, the interest rate is not fixed but varies at specific times throughout the loan. Another characteristic of this loan is that it has a balloon payment due at a preset point. At that point the remaining principle is due […]