NEWS

Think of real estate finance as the engine that powers buying, building, and profiting from property. It isn’t just about having cash—it’s about planning, understanding risks, and making sure every shilling works. First, you must value the property correctly: where it is, what condition it’s in, how much people will pay in rent or buy it. Then you analyze cash flow: the income vs all costs (mortgage, maintenance, taxes). Another big thing: financing methods—maybe a bank loan, maybe extra partners, sometimes creative financing. Also, investors use tools like ROI (return on investment), CAP rate (capitalization rate), NPV (net present value) to decide if a deal is good. A deal might look nice, but if financing is bad, unexpected costs are high, or market is weak, you might lose more than you gain. Real estate finance is the backbone: it connects vision (what you want to build or buy) to reality (what you can afford, what you’ll earn).