The extravagant Las Vegas villa where Michael Jackson once lived is on sale for $9.5 million.

The 24,276-square-foot enclosed property at 2710 Palomino Lane, which is being sold by Sotheby's International Realty, has seven bedrooms, a two-story chapel, and an ornate fountain in the courtyard.

Jackson, who died at his Los Angeles mansion in 2009, lived in this Vegas home with his three children from 2007, according to the home's listing on the property site Luxury Estate.

Take a tour of the luxury villa below.

2710 Palomino Lane sits behind a large gate within a confined 1.7-acre compound for privacy. When Jackson lived here, he used his personal art gallery in the basement as a private exit to get to his car to avoid paparazzi, according to the listing.

Built in 1952, the home gives away its Spanish Mediterranean style with its colourful walls and dramatic bell tower.

The musician's guests would arrive in the foyer under an intricate wooden ceiling with a view to the courtyard through arched windows. An ornate fireplace and grand piano add a touch of luxury and set the tone for the rest of the house.

Everywhere you look, houses are going on sale.

The iconic San Francisco Victorian that the Tanner family occupied in "Full House" and "Fuller House" is now for sale.

While the $4.15 million price tag, as reported by Zillow, might seem like a lot at first, keep this in mind: it's an iconic, multi-level home located near both Golden Gate Park and The Presidio in a city notorious for its insane real estate prices.

Check it out in all its splendor:

The house is located at 1709 Broderick Street in San Francisco's Lower Pacific Heights neighborhood.

The Italianate Victorian house was built in 1883. "Full House" fans might notice something different about it...

Click here for more information >

...the famous red door was painted over.

Bruce Eichner very much enjoys showing off his latest building.

We're in rarefied air, 777 feet above Manhattan's Beaux-Arts Flatiron District — well higher than the golden tops of the Metropolitan Life Tower and New York Life Building a few blocks north.

"We're actually looking down on Rupert Murdoch's three floors at the top of that tower there," said Eichner, founder of the real estate development firm The Continuum Company, with a rather professional smile.

He's pointing down to the top of One Madison, which, until about a month ago, owned the airspace above Madison Square Park.

No more.

All photos by Hollis Johnson unless noted.

SEE ALSO: Pilots reveal what it's like to fly an incredible solar-powered airplane around the world

In his late 60s, Eichner is a thin man in a pinstripe suit, round tortoise shell glasses, and a local's accent. His company is already responsible for several New York skyscrapers, two condominium towers in Miami, and a casino in Las Vegas.

He likes to share the big numbers surrounding his newest project, throwing around phrases like "five hundred thousand tons of rebar," or "two thousand yards of concrete," or "a one-million-pound tuned-mass damper" at an unsuspecting reporter.

He takes great joy in watching me copy them down. 

The skyscraper — like hip-hop or the hot dog — is one of New York's great contributions to the world. 

It may not have had its genesis in New York, but here — with the iconic Flatiron Building blocks away from us — the skyscraper was developed into what would become the defining feature of just about every modern city.

And since then, New York has demanded continuous change to the shape of its newest towers, thanks to ever-increasing zoning restrictions and property values. Today, developers must build higher and in smaller footprints than ever before.

"Each generation has spawned a taller and thinner series of buildings," Eichner said.

Since the millennium, tall, slender luxury residential buildings like One57 or the nearly 1,400-foot-tall 432 Park Ave. have joined the list of the tallest structures in Manhattan.

45 E. 22nd St., which squeezes into a roughly square footprint of about 75 feet wide and slowly expands into a 105-foot-wide octagon at the top, is an excellent example of these forces at work.

From some angles, the building can look like a baseball bat standing on its handle.

While today’s global capital markets have been dominated by near-term volatility such as China’s slowdown, the collapse of oil, and geopolitical unrest among other things, there are a number of long-term structural trends in play that have a more lasting impact on global commercial real estate. Being able to distinguish between these short-term cyclical factors and long-term structural changes is resulting in smarter investment strategies — and giving savvy investors a leg up.

A whitepaper from leading commercial real estate services and investment firm, CBRE, titled "Leading Global Capital in a Time of Uncertainty: Navigating Structural Change," shows three key structural drivers that global investors need to watch.

1. Asian and Middle Eastern capital

A huge influx of capital is entering the global market from Asia and the Middle East, as key investors are looking to expand international holdings. Institutional investors in South Korea, Singapore, Taiwan, and Malaysia, among others, are increasing their allocations to commercial real estate. And this capital pool is as massive as it is diverse — an estimated $8.6 billion in Chinese investments and $5.6 billion in Middle Eastern investments were made in the US commercial real estate market last year alone. And according to research, similar volumes are expected in 2016.

While some have argued that this surge in capital is unsustainable, the sheer size of the capital pools and the diversity of country origin as well as investor and asset types speak to the lasting power of this capital. Peter Senst, president of Canadian Capital Markets at CBRE says, “Asian capital has helped to provide a ‘wall of capital’ into commercial real estate in developed markets, and a wave that big just doesn't disappear.”

2. Regulatory and tax changes

Regulatory and tax changes also have the potential to impact global capital flows. On the negative side, provisions such as Basel III and Dodd-Frank could add additional scrutiny on banks, and therefore increase the costs of lending to commercial real estate. Other regulations, such as FIRPTA, could have positive effects by creating favorable tax treatment for foreign investors in the US leading to gains in existing investments and attract new ones.

Foreign regulations have a profound effect on the market as well. Due to easing of regulations, Chinese and Taiwanese insurers are now allowed to invest in international real estate. Similarly, Japan’s government pension investment fund plans to begin allocating a portion of its $1.2 trillion of assets to alternative investments, including about $1.8 billion in overseas real estate.

3. Tenant demand

Technology has always been a dominant force of change in the world at large. And its impact on commercial real estate is no less profound. Consider the effect tech has had on modern retail: E-commerce now accounts for about 8% of all retail globally (and it’s growing), resulting in a slowdown of new construction among retail stores.

Tech advancement and adoption has also had a noticeable impact on the modern office. New technologies are un-tethering workers from their physical locations and creating a highly mobile workforce, which has resulted in businesses requiring less square footage, but more flexible office space.

It’s never easy to predict what financial markets might do, but successful investors need to understand all the factors, both short and long. Given this change Chris Ludeman, CBRE’s global president of capital markets advises, “Investors and owners of commercial real estate need to constantly reassess their assumptions.”

This is an excerpt from Brief #2 in CBRE’s Global Capital Thought Series – Navigating Structural Change. To download the full piece click here.

Learn more about navigating today’s global capital markets.

This post is sponsored by CBRE.

SEE ALSO: 5 factors impacting global market volatility

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The Playboy Mansion has a new owner.

The infamous Holmby Hills, California, estate — which listed for a whopping $200 million earlier this year — is now in contract to sell to its next-door neighbor, Daren Metropoulos, The Wall Street Journal reported.

Metropoulos is a principal of the private-equity firm Metropoulos & Co., and a former co-CEO of Pabst Brewing Company. The final selling price for the five-acre property and nearly 20,000-square-foot mansion could not yet be determined.

A Playboy Enterprises representative confirmed the Wall Street Journal's report to Business Insider.

As part of the terms of the sale, Hugh Hefner must be allowed to stay as long as he desires. The estate was sold by Playboy Enterprises, which leases it back to the 90-year-old Hefner. 

Metropoulos purchased the next-door estate from Playboy in 2009, reportedly paying $18 million for it. Once Hefner's tenancy ends, Metropoulos apparently intends to connect the two properties into a single 7.3-acre estate.

Gary Gold and Drew Fenton of Hilton & Hyland had the listing, along with Mauricio Umansky of the Agency.

Raisa Bruner wrote an earlier version of this story.

SEE ALSO: Adele reportedly just dropped $9.5 million on this gorgeous Beverly Hills mansion

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The 20,000-square-foot house is on the edge of the Los Angeles Country Club in the Holmby Hills neighborhood, right between Beverly Hills and Westwood.

The five-acre property includes the main mansion and a four-bedroom guesthouse.

For decades, invitations to Playboy Mansion parties have been highly coveted, and stories of the wild nights here are part of Hollywood legend.

A week before trial was set to begin, Zillow has reached a $130 million settlement with News Corp's Move Inc. and the National Association of Realtors. 

The deal brings about an end to a two-year long legal battle over trade secrets that could have cost Zillow as much as $1.8 billion in damages, according to The Seattle Times.

The lawsuit centers around two former Move executives, Errol Samuelson and Curt Beardsley, who were hired by Zillow in what Move called a "very regrettable act of executive poaching."Move alleged that Samuelson and Beardsley stole trade secrets and attempted to destroy the evidence after the fact, and that Zillow's acquisition of Trulia, another online residential real estate site, in February 2015 was Samuelson's idea. Move's Realtor.com is a competitor of Zillow's, and the Trulia acquisition "created a giant" in the industry. 

In the filing, Zillow agreed to pay Move $130 million but did not admit to any "liability, wrongdoing, or responsibility."

Zillow shares were up 9 percent in after-hours trading Monday and were still up more than 7 percent when the markets opened Tuesday.

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NOW WATCH: How to turn your MacBook into an external hard drive by pressing one button

You may not immediately think to purchase a vacation home in the same city as your permanent residence, but more and more real estate agents are saying this is a growing trend among homebuyers.

The Wall Street Journal recently reported examples of this phenomenon in major cities across the US, including couples with two homes in Miami and Los Angeles. 

But why spend the money for another place just a few miles away?

Victoria Shtainer, a New York City-based realtor with Compass, said that some of her clients purchasing homes in Brooklyn say they want a change of scenery from their Manhattan neighborhoods.

"It's a different feeling and a different mindset," Shtainer said to Business Insider. "You feel like you're away from your everyday problems and work and you are able to take yourself to a different place."

Buying another home in a different borough allows homeowners to experience a new neighborhood's nightlife and restaurants. Instead of rushing back to their permanent address, they'd have more freedom to spend the night or the weekend at their second home. She said her clients enjoy changing their everyday routine.

"You go to the same streets, same doorman," Shtainer said. "Here, you have all your things in a different place and you transform yourself."

Gill Chowdhury, a New York City-based broker with Douglas Elliman Real Estate, said he has clients who are based uptown, but who are using a second home in Tribecca as a "test run" before purchasing a larger home in the same neighborhood.

"They want to get a better sense of the neighborhood, more so than just going in the neighborhood and going home everyday, but really to experience and immerse themselves in what it's actually like to live downtown," Chowdhury said.

This lifestyle, of course, comes at a price. Shtainer describes these clients as people who "have disposable income."

"It's a luxury that few of us can afford, but they love it," Shtainer said. "They would not have it any other way."

Chowdhury also acknowledges that clients must be of a certain economic background to be able to purchase second homes.

"There are various reasons why people with the money would want to and end up making that decision," he said. "I think for the most part that there's that 'staycation' aspect."

Shtainer has also seen clients who might want a beach vacation, but who don't want to go too far from Manhattan.

"There's people that live in the city and they have a summer residence in Brooklyn on the water," Shtainer said. "You could take the train and be there in 45 minutes and you're on the boardwalk, you're beachfront, and you spend the whole weekend on the water."

A home on the beach in Brooklyn is not only closer, but is also much cheaper than purchasing a home in the Hamptons.

"They want to be beachfront, and these apartments are affordable because they are under $1 million, and you have the beach downstairs," Shtainer said. "To replicate this in the Hamptons, you need at least $5 million, plus it's more of a commute."

To separate the living experiences in clients' permanent homes and vacation homes, Shtainer said the homes often have a very distinct feel to them.

"One house has a beachy feel, compared to the home in Manhattan with a modern feel to it," she said. "The second home is usually more casual."

So if you're a New Yorker looking for a "staycation" experience without the cost or travel time to the Hamptons, perhaps a second home nearby is a new purchase you should consider.

SEE ALSO: Take a look inside the $25 million Miami mansion Lenny Kravitz once called home

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NOW WATCH: Meet the big shot residents of 15 Central Park West

Should you own a home? Unless you have 20 million bucks in the bank, in cash, you have no business buying a house.

People think the only way to save money is to buy a house. Suzy Orman thinks you have no way to earn any real money for yourself, so she advises you to buy a house as the only way to get your money. You will get your home paid off when you are old. Who wants to wait until they are old to have money?

A home is not an investment because it doesn't pay you every month. In fact, you have to pay it every month.

That's why a house is not an asset, it's a liability. Nothing is a good deal if you have to feed it constantly.

People ask, "Why would you pay rent when you could buy?" Because you can't leave. Who wants to go to jail for 30 years? You can be mobile and nimble if you rent. Mobility is a great thing in today's world. Why settle down? Invest the money in yourself or your business. Your money needs to be free!

I have been investing in multi-family real estate for over 25 years. If you want a great opportunity to create income for yourself, realize that America is becoming a nation of renters.

How many reasons do you need to buy multi-family real estate? Apartments offer high cash yield, build equity, give tax advantages and let you use leverage. A $400,000 purchase can be bought with 25% of the price allowing you to leverage $100,000 to control four times the value in physical property. Stocks or gold can't touch that!

The house, much like a college education, has been fed to you as the American dream. Really, it's a middle class myth perpetuated by outdated thinking, politicians and mass media. Buying a house may have worked for previous generations but old ways of doing things aren't viable in 2016. We are not in the 1950s, things have changed and people refuse to adjust.

A house is not an investment.

I want to give you three tips to making true investments.

1. Invest in yourself

I do a weekly talk show called Young Hustlers where I talk to millennials about all things money, career and sales. I always emphasize the need to invest in yourself, no matter what your age. When I was 25 I made a $3,000 investment to buy a sales program for the purpose of becoming better at my job. Becoming a better you will never fail you.

Related: How to Live Rent-Free While Building Your Business

2. Focus on income

Whether you have a house or not is irrelevant to how well you are or, will be, financially. So many people are concentrated on savings but their real problem is they just don't make enough money. I encourage the millennials on my Young Hustlers show to spend their energy on this one thing — getting their incomes up high enough where they can actually make a real investment.

Related: Don't Make These 2 Mistakes With Your Cash On Hand

3. Invest in something that pays you

Only after you have enough income can you start to think about investing. As I mentioned earlier, buying a home to live in is not going to pay you. Whether it be multi-family real estate or something else, a true investment will not cost you money. There are so many real estate agents out there giving false information. A home needs to be fed, it won't feed you.

If you start investing in yourself, focus on growing your income. Put that growing income into an investment that will pay you, then you will be living like the rich do, not like the middle class.

Most Americans have been made to believe the myth that getting rich is almost impossible or not important. If you look at the world you will see that the only group of people that are safe are the rich. The rich didn't get rich "buying a house."

Blame them, hate them, resent them, but they are safe and everyone else is at risk. They will be able to survive inflation, housing busts, tight credit, high unemployment rates and whatever else is thrown at them. They have investments that pay them.

The middle class idea of just "being comfortable" is a risky venture in 2016. If your hope is in a house, you will be disappointed. I'm all for education, but how many people have gone to college and into massive debt and found themselves unemployed? How many of them are paying that debt back for 10, 20 and 30 years?

Don't get caught in the idea that a house is your ticket to wealth. A house, along with a college education, has been fed to this country as the way to financial prosperity. It may have been true in the past, but today it's all a myth.

Related: Is Life Insurance a Good Investment?

SEE ALSO: This flowchart could help you decide whether to buy or rent a home

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NOW WATCH: REAL ESTATE WARS: Inside the class and culture fight that's tearing San Francisco apart

San Francisco and the surrounding Bay Area are some of the most expensive housing markets in America. 

House prices fell 1.8% since March of last year, the first drop of its kind in four years, but the housing in the Bay Area still carries a hefty price tag.

Using data provided to us from Zillow, the largest real estate network on the web, we've narrowed in on San Francisco's 20 most expensive homes for sale.

Scroll down to see the most expensive listings for yourself, ordered lowest to highest:

SEE ALSO: Home prices in San Francisco just fell for the first time in 4 years

20. 1 Upper Road, Ross, California

Price:  $15,995,000

This estate has 2 guests houses, a tennis court, pool, pool house, and a seven car garage. With a high priority placed on privacy, the property is spread across 3.05 acres and includes numerous beautiful gardens. 

See the listing for photos and information.

19. 155 Kings Mountain Road, Woodside, California

Price:  $16,795,000

Between the main residence and the guest house, this estate spans 5 acres and includes gardens, a pool, spa, tennis court and playground, not to mention an equestrian facility that can house up to eight horses. There's even a poolside outdoor kitchen.  

See the listing for photos and information.

18. 5 Faxon Forest, Atherton, California

Price: $16,900,000

This English-style estate, designed and constructed in 2007, sits on just over an acre of land. The entertainment lounge, found on the first floor, includes a home theater with custom seating, a billiards area and a bar as well as a wine room. Best of all? The Master suite has a private balcony and fireplace. 

See the listing for photos and information.

Sean "Diddy" Combs is having trouble selling his apartment.

The rapper, producer, and entrepreneur has been trying to sell his home in Manhattan's The Park Imperial for the past four years, according to The Observer.

When he first put the condo on the market in 2012, Combs listed it for $8.5 million. In January, he cut it down to $6.995 million. Now, it's on the market for $6.5 million. Either way, he makes a profit: Curbed reported that he originally bought it for $3.82 million in 2005.

Why no one is buying this sky palace is beyond us, but you can do Diddy a solid and take it off his hands. Or you can just take a look at the luxurious pad below:

Combs' apartment is in The Park Imperial at 230 W. 56th St. in Manhattan. It's conveniently close to Central Park.

The place is 2,300 square feet — that much space alone is luxury in New York.

Click here for more information >

The apartment is on the 66th floor. As long as you don't have a fear of heights, you'll be very comfortable here.

Click here for more information >

Jennifer Lopez is apparently moving into a new celebrity-approved home in Bel-Air.

According to The Los Angeles Times, Lopez has purchased the 14,000-square-foot home that actress Sela Ward and her husband, venture capitalist Howard Sherman, listed for just under $40 million in September. Lopez reportedly paid $28 million for the spread. 

Originally built in the 1940s, much of the home has been rebuilt with reclaimed wood from Louisiana and Mississippi, where Ward grew up.

Among the eight-acre property's notable features are a 30-seat movie theater, outdoor kitchen, and mini golf course.  

SEE ALSO: The $200 million Playboy Mansion just sold to its next-door neighbor

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The home sits on a huge lot with more than 8 acres of land. The main house itself has about 14,000 square feet of space.

The couple initially chose the property for all of the outdoor space it offered their two children. "I really wanted them to be outside more than not," Ward told The Wall Street Journal in September.

Source: WSJ

Wide paths lead around the property.

It's seven hours before DBGB Kitchen and Bar officially opens, but people are already seated in the restaurant's dining area.

They all have their laptops out, and a pair are holding a meeting at a bar table. It's because during the day, the restaurant doubles as a shared workspace.

That's thanks to Spacious, a startup cofounded by Preston Pesek and Chris Smothers to make use of empty restaurants by offering them up to freelancers and others without an office as an alternative to crowded coffee shops.

One customer on Thursday morning was Diana Montano, tour operations and project coordinator for Museum Hack, which provides interactive museum tours. She has meetings with her team members in the restaurant two to three times a week.

Sometimes they chat over near the bar. Sometimes they huddle in the private dining room and make phone calls in the sofa booths.

"I like the fact that it's not a typical office space — just white desks and walls," Montano told Business Insider. "I like the flexibility of using the restaurant space and feeling part of the city."

More than 2,000 restaurants in Manhattan and Brooklyn are closed before 6 p.m. every day, according to Pesek, who previously worked at the real estate management firm Fortress Investment Group. Smothers was a developer for a roster of startups.

"This is much better to conduct business meetings in a social way," Pesek said. "When a place like DBGB is closed until 5 or 6 p.m., it basically means an excess capacity that the city at large has. Meanwhile, in every coffee shop that you pass by, people are piling on top of each other with laptops."

The rise of freelancer economy, coupled with more flexible working arrangements nowadays, is creating a vast demand for unconventional work spaces. We already saw the explosive growth of WeWork and newcomers like Mod, which offers cleansing juices and meditation reminders in its coworking space.

Spacious' founders think hospitality and consistency are important. To that end, they manage the playlist and music volume, set up their own Wi-Fi network, provide unlimited coffee (it'll be supplied by either Toby's Estate, Irving Farm Coffee Roasters, or Intelligentsia Coffee) and hire part-time hosts to take care of the members. Smothers, who is also a developer, built a platform that collects revenue and allows for an easy check-in.

Unlike the majority of coworking spaces, Spacious is not subleasing a space from the landlord. The startup charges $95 per month for unlimited access to all locations ($29 for a day pass), and gives a profit share to partnering restaurants every month. About 50 people have signed up for memberships thus far.

Spacious' more ambitious goal is to improve food culture by allowing restaurants to focus on what they do best. "If we can help relieve ground-level retail pressure, then restaurants can afford to take more risks with food, or the head chef can experiment more with new concepts," Pesek said.

It's pretty tempting to work in a restaurant when the kitchen staff is already prepping, and Pesek said that going forward they want to offer small eats and an exclusive lunch menu for members. The open bar is also an option.

The startup had recently closed a round of fundraising from three venture capital firms, including Lerer Hippeau Ventures, BoxGroup, and SV Angel.

"We have the ability to scale quickly ... once we get an agreement with a partner, we can open in two weeks," said Pesek, citing the ready supply of Wi-Fi, cables, and coffee beans.

Spacious will add L'Apicio as its second location by end of June. There may be more options in Lower Manhattan and Williamsburg this summer.

SEE ALSO: WeWork's cofounder is open to bringing nap rooms into coworking spaces

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NOW WATCH: FORMER GREEK FINANCE MINISTER: How I dealt with stress when Greece nearly defaulted

The Hamptons offer a luxurious escape during New York City's hot summer months. However, the steep cost of real estate often drastically limits the number of people who can actually afford to buy the high-end vacation homes there.

For those who aren't quite ready to shell out multiple millions of dollars for a home of their own, renting is a slightly more affordable way to experience the lavish lifestyle.

Working with the real estate site StreetEasy, we've gathered 14 of the most luxurious properties available for rent in the Hamptons right now.

Spend just one month in these homes, and you might consider purchasing a permanent address of your own next summer.

SEE ALSO: Take a look inside the $25 million Miami mansion Lenny Kravitz once called home

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This oceanfront property sits on a 2.92-acre lot with views of the water in nearly every room. Past the gated driveway, you'll find a heated Gunite pool, an in-ground spa, and a covered brick patio. Inside, the large rooms and custom features are just as impressive.

Location:Bridgehampton

Price: Memorial Day - Labor Day: $1.2 million; July: $600,000

Experience luxury and privacy on this 2.52-acre lot in Sagaponack. Inside, you'll find a secluded master suite, a six-person tub, and a home office. At the center, look up in awe at the home's great room, with 10-foot glass doors that look out over the lap pool.

Location: Sagaponack

Price: Memorial Day - Labor Day: $800,000; July: $450,000

This magnificent 26,500-square-foot estate features a large grand foyer, chef's kitchen, walnut library, and 10-seat theater. The excitement continues in the lower level, where you'll find a rock climbing wall, DJ booth, and two-lane bowling alley.

Location:Bridgehampton

Price: July: $1 million

Buying your first house can be an excellent test of patience, endurance and resilience.

If you’ve never been through the process before, it can certainly be an intimidating one. From scary terms and bidding wars to that tiny matter of plunking down a whole heck of a lot of money for a down payment, most people who are buying their first homes could stand to use a little help along the way.

We’ve tapped into some experts from across the country to find out what their top tips are when helping first-time homebuyers find and purchase their dream houses. Use some of these whenever it’s your turn to take a ride down Homebuyers’ Lane.

SEE ALSO: 7 common pieces of financial advice you should probably ignore

Tip No. 1: Determine a comfortable budget

Expert: Russell Vilt, Managing Broker & Owner Excel Condos, Chicago, IL

What it means: Nothing can be done when it comes to buying a home without first understanding your budget. “I always suggest speaking with a lender who can help determine their buying power,” says Vilt. “The sales price of a home is not the only expense, so they need to be aware of taxes, assessments (if it’s a condo), homeowners’ insurance, etc.”

A tip from MagnifyMoney: be sure not to let a mortgage lender or realtor talk you into buying more than you can truly afford. Just because you get approved for a $300,000 mortgage, it doesn’t mean you should get a $300,000 house. You should also learn how to hack your way to a cheaper mortgage.

Tip No. 2: Get pre-approved by a lender as soon as you think you want to purchase a house

Expert: Rhonda Fee, broker/realtor, Aspire Realty Services, Pleasanton, CA

What it means: Pre-approval will be your road map for a successful purchase, which is why it’s so important to get this part rolling right away. “Understand what bills need to paid off, and how much down payment you’ll need,” says Fee. “The lender should be someone they have been referred to by a friend who had a successful transaction with that lender, or … a realtor. A lender can kill a deal if they are not on top of their game.”

Check out this piece for more about what to know before getting pre-approved for a mortgage.

Tip No. 3: Know what loans are available to you

Expert: Tory Sheffer, realtor, Berkshire Hathaway HomeServices, Michigan

What it means: Sheffer has come to realize that most first-time homebuyers tend to know the basics about buying a home — like what a mortgage is, for example — but that’s about it.

“They aren’t aware of the different options available to them with Conventional, FHA, Rural Development and 80/10/10 Piggyback loans to help buyers who do not want to pay Private Mortgage Insurance,” he said. To help, Sheffer makes sure to take some time and explain to his clients the difference between these additional options. For example:

• Rural Development is a zero down payment program
• FHA is a 3.5% down payment
• 80/10/10 is a 10% down payment with 10% as a second mortgage to avoid PMI, which in turn lowers the monthly rate, more often than not
• Conventional Mortgages are not insured by the federal government, but more often than not PMI is required until the buyer has built 20% equity in their home. Learn more about why you should aim for a 20% down payment.

Ask your broker or lender for more specific information about each. 

This 1850's Gramercy Park townhome is located at the corner of bustling city life and serene views.

The homeowner, an IBM executive who wanted to be identified only by his first name, Brian, said the location is ideal.

"It’s a fabulous area because you have the parks right outside, so it’s absolutely peaceful and quiet and then you only walk three blocks and you’re on Union Square, Broadway, and 5th Avenue," Brian said.

The IBM executive and European published author has spent over $200,000 on renovations at the Gramercy Park home. He told BI that he draws inspiration from his time spent in Paris, Monaco, and Copenhagen.

"I’ve lived in so many places around the world," Brian said. "It’s just one of these transitions, finding a new space and developing a new product."

SEE ALSO: 14 of the most luxurious homes you can rent in the Hamptons this summer

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To make the most of the space, Brian had to think creatively. "There's a bookcase in the middle next to the fireplace downstairs that’s actually a murphy bed," Brian said.

When he originally purchased the home, Brian was displeased with the lack of light. "The brick walls were very dark and brown and everything was old," Brian said.

After the renovations, the pristine kitchen offers plenty of storage and counter space, perfect for hosting intimate dinner parties.

The numbers are impressive: The median existing home price for homes across the United States stood at $232,500 in April, according to the National Association of Realtors. That's up 6.3% from the same month one year earlier, and marks the 50th consecutive month in which median housing prices have increased from one year to the next.

This steady rate of appreciation might inspire you to invest in residential real estate. After all, the performance of the housing market during the last four years has been far steadier than that of the stock market. But be careful: Sure, investing in real estate can be profitable — but it can also be risky. Investors who don't do their homework before sinking their dollars into homes could lose a bundle of money.

Here are five rules you must know before investing in real estate.

SEE ALSO: A real-estate expert and self-made millionaire shares the one rule he follows before investing in anything

1. Don't let your emotions betray you

Jamal Asskoumi, owner of the online real estate agency CastleSmart, says that too many inexperienced investors make the mistake of falling in love with a property for the way it looks. They then invest in it without running the numbers to make sure that the home has real potential to increase in value enough to make it a sound investment.

Falling in love with a property can also cause investors to spend too much on it upfront, making it nearly impossible for them to make a profit after their purchase.

"Unlike stocks that are numbers on a screen, property must be liked and appreciated before it can be invested in, and this is the downfall of many investors," Asskoumi said. "When visiting a property, investors sometimes become attached and feel as though they have to have it, regardless of the price. They end up paying more than what is necessary and lose on the investment."

2. Have enough money to cover both known and unknown losses

Investing in real estate isn't cheap. You are buying a home, after all. But the real trouble spot for investors are the unexpected costs: If you rent out your investment, you never know what damage your tenants might cause. Fixing that damage could cost thousands of dollars.

You also have to be prepared for possible losses. Housing values can go down as well as up. You need the financial cushion to handle these fluctuations, said Rocky Lalvani, a financial coach and founder of the Richer Soul financial blog.

You also need the money to cover possible monthly losses until your property does appreciate enough in value for you to sell it and earn a big profit. Maybe your mortgage on the property you bought is $2,000 a month but you can only rent the home for $1,800 a month. You'll essentially be losing $200 a month while you wait for your investment to appreciate.

"Be prepared for losses; it's a cost of business," Lalvani said. "Real estate may lose money in the short term while your asset is building over the long term."

3. Don't rent to just anyone

Finding good tenants is one of the biggest challenges in investing in real estate. The wrong tenants could damage your property, stop paying their monthly rent, and force you to evict them, a process that is long and costly.

That's why it's so important to do your research before renting out your home. Run the credit of potential tenants to determine if they've struggled to pay their bills before. Run criminal background checks, too, on potential tenants.

Above all, never simply buy into the promises that potential tenants make to you.

"Tenants will literally lie about anything and everything," said Eric Bowlin, a real estate investor and founder of the real estate investing blog EricBowlin.com. "Assume everyone has no job, no income, and a long eviction record, until otherwise proven." 

Sometimes a team can accomplish far more than a group of lone individuals. For example, cyclists in the Tour de France take turns riding at the front of their group, decreasing the wind for those behind them. Wolves hunt in packs to take down animals 20 times their size. And for those of us who were children of the '90s, we all remember Ducks Fly Together.

Related: 8 Ways Real Estate Is Your Smartest Investment

This brings up another team that can accomplish amazing things — not a team of people, but a team of benefits which, when combined, can help you achieve your greatest financial goals. Specifically, I want to talk about real estate.

I'm a real estate investor, and I firmly believe that real estate is the best traditional investment on Planet Earth today. However, just because you buy a piece of real estate doesn't mean you're going to make money.

As I explain in "The Book on Rental Property Investing," big wealth is built through real estate investing by capitalizing on something I call "the four wealth generators of real estate." Alone, each of these benefits can help you make more money, but together they'll make you rich.

SEE ALSO: Real-estate experts say these will be the 10 hottest US neighborhoods in 2016

1. Cash flow

Cash flow is the extra profit left over after all of the expenses have been paid on a property. For example, if my rental property produced $2,000 in income and my expenses came to $1,700, my cash flow would be $300 that month.

Now, I know a lot of you are saying, "Three hundred dollars is not going to make me a millionaire."

Probably not. But remember, we are just talking about one of the wealth generators. There are still three more to go!

Additionally, that $300 might be from just one property. If I owned ten similar units with the same cash flow, that's $3,000 per month. If I owned 100 units, that's $30,000 per month. This cash flow can go a long way toward helping you quit your job — or helping you save for a future big purchase, or retire wealthier.

2. Appreciation

When I talk about appreciation, I am not referring to how much I like you (though I do appreciate you!). I'm referring to the natural rise in value that real estate experiences. For example, if you purchased a property for $200,000 ten years ago, and today that property is worth $300,000, the appreciation made you $100,000 richer!

Of course, appreciation doesn't cause values to increase every year (consider 2007!). However, historically, real estate prices have appreciated over the long term. So, again, appreciation alone is not likely going to make you a millionaire, which is why I don't recommend that people purchase bad deals hoping that appreciation bails of them out.

However, appreciation is combined with the other "members" of the wealth generation team, powerful stuff can happen.

Related: 6 Advantages of Real Estate Investing for Savvy Entrepreneurs

3. The loan pay-down

When you purchase a rental property with a mortgage, each month you make a payment to the lender. That payment includes two parts: principal and interest. Interest is the profit for the lender, but the principal is money you are paying down the loan with.

For example, if you purchased a house five years ago for $100,000 and obtained a $80,000 mortgage (we’ll say it was a 30-year mortgage with a 5 percent fixed rate), today you would owe only $74,000. Ten years from now, you would owe only $65,000. This means that every year your equity increased (equity is the difference between what a property is worth and what is owed on it), you'd gain value, as long as the property value didn't drop.

Of course, if you paid all-cash for a property and didn't obtain a loan, you would forfeit this wealth generator. This is something only you can decide.

Over the past year and a half, Macy's financial performance has been sobering, to say the least. Like fellow department store companies Kohl's and Dillard's, Macy's has reported a double-digit drop in earnings per share since the beginning of 2015. Macy's revenue has declined by more than 5% in that time span, which was worse than either Kohl's or Dillard's.

Due to this rapid reversal in EPS, shares of all three companies have plummeted by 40% to 50% since the beginning of 2015. However, in the case of Macy's, this huge stock decline looks like an overreaction. That's because Macy's owns a large portfolio of real estate, which now accounts for the vast majority of its value.

A retail turnaround could be tough to execute

Not surprisingly, executives at Macy's, Kohl's, and Dillard's are promising to get earnings back on track in the next couple of years. Despite its falling margins, Macy's has repeatedly affirmed that it will eventually return to its target EBITDA (earnings before interest, taxes, depreciation, and amortization) margin of 14%.

Unfortunately, it's not clear that retailers will ever be able to sustain the margins they earned in the past. Amazon.com is making a big push into the fashion market, with considerable success. This development will pressure department stores' profitability for the foreseeable future.

That's not to say that department stores with solid franchises like Macy's, Kohl's, and Dillard's are doomed. Nevertheless, given Jeff Bezos' "your margin is my opportunity" philosophy, they will probably need to accept lower margins to avoid massive market-share losses.

There's more to the story than retail

Thus, just based on Macy's recent financial results and the future prospects for its retail business, the company's stock price decline seems well deserved. However, analysts who examine only Macy's current sales and profitability trends are overlooking the company's key source of value: its real estate.

Hedge fund Starboard Value published an analysis earlier this year valuing Macy's real estate at nearly $21 billion. That's 20% above Macy's current enterprise value (the total value of its stock and outstanding debt).

Real estate valuation is a somewhat subjective process. The value of Macy's mall-based stores in particular could be impacted by the ongoing shift of retail sales to the Internet. Still, about 35% of the estimated real estate value comes from stores in A, A+, and A++ rated malls -- the top-performing malls in the country.

Moreover, another 35% of the estimated real estate value comes from eight "downtown" stores, mainly in major cities like New York, Chicago, Minneapolis, and San Francisco. Much of this real estate could be more valuable if it is repurposed for office or residential use. That means a retail downturn wouldn't hurt its value.

Other department stores like Kohl's and Dillard's have much less valuable real estate than Macy's. That means they must revitalize their underlying retail businesses to create value for their shareholders.

Macy's is taking action

Of course, Macy's valuable real estate might not be worth much to shareholders if the company's management were adamantly opposed to monetizing it.

Yet that's not the case. Macy's has shown in the past year or so that it is determined to extract value from its real estate -- it's just going to take time, due to the complexity of most real estate deals.

In April, Macy's hired real estate industry veteran Douglas Sesler to fill a new role as its executive VP for real estate. Furthermore, Macy's has announced a handful of real estate deals in the past couple of years. It closed stores in Cupertino, California, and Pittsburgh and sold them to third parties. Meanwhile, it sold the underutilized upper floors of two downtown stores in Brooklyn and Seattle.

Just last week, Macy's sold a downtown location in Spokane, Washington, just a few months after closing that store. This was a relatively small transaction -- the Spokane building's assessed value is $6.8 million -- which may have helped Macy's close the sale quickly. Still, it provides another example of Macy's increased focus on monetizing its real estate.

Value will shine through soon

Thus far, Macy's shareholders haven't really benefited from the company's real estate initiatives. Macy's stock remains near a multiyear low. But it has only been seven months since Macy's announced plans to explore real estate monetization strategies. From the beginning, Macy's management has suggested that it would take a year or two to nail down any major real estate transactions.

As Macy's announces larger real estate sales or joint ventures -- something that will hopefully begin in the next six to 12 months -- investors may finally look beyond the company's subpar sales and earnings results and recognize the value of its real estate. That should help Macy's stock get back on track.

Adam Levine-Weinberg owns shares of Macy's, Inc. The Motley Fool owns shares of and recommends Amazon.com. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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How much space can $1 million buy you in a major city? In some places, not much more than a closet. Here's how some of the world's priciest cities compare. 

Produced by Alex Kuzoian

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If you want to move to a city that's better for your budget— or maybe just to a different housing complex in your current city — you need to compare all of the apartments for rent. Comparing the cost of apartments from city to city, however, is a tedious process that involves tons of Google searching and number-crunching.

For this reason, GOBankingRates conducted a study of what the average one-bedroom apartment costs in 50 major US cities. This study looked at various factors including the median rent for a one-bedroom apartment, the average square footage, the cost of basic monthly utilities, and each city's walkability score, which is based on a scale from 0 to 100.

To provide the most comprehensive apartment guide to cities across the country, GOBankingRates also identified the percentage of apartments for rent in each city that have the following amenities: dishwashers, washer-dryers, a pool, fitness-center access, pet-friendly units, and parking.

To better understand where your city — or soon-to-be city — ranks nationally, here are the averages for each factor from all 50 cities on the list:

• Median rent for one-bedroom apartment: $1,234.43
• Square footage of one-bedroom apartment: 678.32 square feet
• Cost of basic utilities: $147.06
• Walkability score: 52
• Percentage of apartments for rent with a dishwasher: 68%
• Percentage of apartments for rent with a washer-dryer: 39%
• Percentage of apartments for rent with a pool: 61%
• Percentage of apartments for rent with a fitness center: 53%
• Percentage of pet-friendly apartments for rent: 26%
• Percentage of apartments for rent that have parking, either covered or with a garage: 36%

Click through to see how much the average apartment costs in 50 major US cities. The cities are listed in order of population from smallest to largest.

SEE ALSO: What the median rent in New York City buys you in 25 big US cities

1. Newark, New Jersey 

Median rent for 1-bedroom apartment: $850
Average square footage of 1-bedroom apartment: 650 sq. ft.
Cost of basic monthly utilities: $146.33
Walkability score: 80

Newark is among the 20 cities with the lowest median rent for a one-bedroom apartment. Getting around on foot in Newark isn't too bad either; this city is the No. 4 most walkable city.

Apartments with a dishwasher: 40%
Apartments with a washer-dryer: 25%
Apartments with a pool: 9%
Apartments with a fitness center: 23%
Apartments with parking: 34%
Pet-friendly apartments: 19%

2. Anchorage, Alaska 

Median rent for 1-bedroom apartment: $995
Average square footage of 1-bedroom apartment: 593.12 sq. ft.
Cost of basic monthly utilities: $222.92
Walkability score: 32

The median rent for Anchorage apartments is just under $1,000 a month. But apartments in Anchorage rank third highest in the cost of utilities. Unsurprisingly, Anchorage apartments for rent aren't big on pools.

Apartments with a dishwasher: 29%
Apartments with a washer-dryer: 22%
Apartments with a pool: 0%
Apartments with a fitness center: 16%
Apartments with parking: 25%
Pet-friendly apartments: 44%

3. Pittsburgh

Median rent for 1-bedroom apartment: $1,850
Average square footage of 1-bedroom apartment: 604 sq. ft.
Cost of basic monthly utilities: $174
Walkability score: 61

The average rent for Pittsburgh apartments increased by over $300 in the past seven years, from $627 in July 2009 to $958 in February 2016, according to RentJungle.com. And the most expensive apartments for rent in Pittsburgh are in Squirrel Hill North, Strip District, and South Side Slopes.

Apartments with a dishwasher: 65%
Apartments with a washer-dryer: 33%
Apartments with a pool: 38%
Apartments with a fitness center: 41%
Apartments with parking: 35%
Pet-friendly apartments: 20%