OFRE S5: The Four Sources of Real Estate Returns

The Four Sources of Real Estate Returns In this episode we talk about the four sources of returns that one can get from real estate investing. You will learn about the myriad advantages of investing in real estate including the following four sources of returns. 1)Cash flows from operations i. Broken in to two categories base line cash flows and increases in cash flows over time ii. Income expenses go up proportionally after stabilization 2) Tax Advantages i. Depreciation, cost segregation ii. Deferred capital gains iii. Possible 1031 3) Appreciation i. Natural ii. Forced (capitalization rates) 4) Amortization i. 18% on 20 year am at 5 year point ii. Refi or sell