The Investor

Investing in real estate means purchasing a property that is “income-producing”. This means the property is not owner-occupied, and can be residential rental, resorts, professional, industrial, etc.   The value of the property is partly determined by the income and expenses, and ultimately the net profit.

An investor has a different focus than the owner-occupied residential buyer.  Terms like cap rate, appreciation, and proper management are a big part of the equation.

An investor is concerned about the following factors:

  • Return on Investment
  • Cash Flow and Cap Rate
  • Tax Advantages of owning investment property
  • Appreciation of the Property
  • Management of the Property

Investment real estate requires involvement of the buyer’s Tax Attorney and/or Accountant.  Different scenarios apply to different properties and different purchasers.