THE MOST IMPORTANT MATHEMATICAL FORMULA TO KNOW

Having a Bachelor of Science Degree in mathematics and teaching high school math at West High School in Bakersfield for 14 years there were lots of formulas that I learned and taught.

When I started investing in rental properties I discovered that one particular formula was extremely important in creating a successful outcome.  That formula is:

I = PRT

Interest = Principal X Rate X Time

As an investor, I wanted to be successful.  I could just hand my money over to a Financial Advisor and hope he makes good investments for me or I could study the asset I have chosen and learn the skills necessary for me to know how to make intelligent decisions on my own.

When you invest in residential income properties, you create four different returns on your investment, all of which can vary significantly based on actions that you take.

1. Cash Flow 3. Tax Benefits
2. Debt Reduction 4. Appreciation

Do you know how to personally determine and maximize your yields on your income property?  The higher your yields, the sooner you can reach your financial goals, including becoming financially independent.

Seven Cures for a Lean Purse from the book

The Richest Man in Babylon

 By George S. Clason

  1. Start thy purse to fattening
  2. Control thy expenditures
  3. Make thy gold multiply
  4. Guard thy treasures from loss
  5. Make of thy dwelling a profitable investment
  6. Insure a future income
  7. Increase thy ability to earn.

I have this on the back of my business card. You can also get a free copy of this book at our website!

Click Here

Properties Sold In Augest

Management Tip of the Month

The absolute most important action that a property owner needs to do is properly screen a rental application. You will never bat 1.000 but if you make a mistake and hand a key to the wrong person, it can be very costly to correct your blunder. This is why I recommend that when you get an application, you assume that everything on it is a LIE. It is your responsibility to prove that the information given is true. You need to run a credit report, verify employment and especially check rental history.

I give a lot of information about this process in my book:

How to Manage Residential Income Property for Maximum Profit​​

True or False

The three most important words to consider when buying or selling residential income property are: 

1) Location

2) Location

3) Location

Answer: FALSE!!!

The three most important words to consider when buying or selling Real Estate are: 

1) Timing

2) Timing

3) Timing

Want To Invest In Real Estate?

If you are looking to buy or sell residential income property look no further than The Ritchey Team. We are residential income specialist that can help you reach your investing goals. Contact us for a free consultation or a free property valuation.