INVESTORS
Real estate investing can be a path to wealth or a road to ruin. When buying investment real estate, how can you tell? First, like any investment, ask questions, do your homework, form a plan, and work the plan.
Second, never forget the first three rules of real estate, location, location, location. What about the property makes it attractive to you, others? What makes it unique? If it comes at a bargain price, why doesn't everyone want it? Sounds so simple, yet many get carried away in the moment. Just look at all the investors losing their homes in today's market.
Third, understand what you are getting into. How much time do you expect to put into the investment or how much you are willing to pay someone to manage your investment. All real estate comes with expenses in time and money - even raw land. Be aware of it, plan for it, and then go for it.
Fourth, do the numbers work for you? How will you make a return on the investment. Real estate investing has the initial cash outlay, monthly expenses and incomes, disposition costs and profit, and the need for the rainy day fund.
I can advise you with your real estate investment needs.
- In addition to being an investor myself, I also have a set of economic tools that I use to evaluate a property both prior to purchasing it and during its ownership.
- I know the questions to ask you that will enable you to decide what investment path you want to take.
- I understand the areas I represent and may have investments in those areas.
Here is a sample result of my Property Investment Analyzer. Note the detail it goes into. All areas in green require inputs. Failure to account for any of the expenses will cause problems as well as not understanding the terms Capitalization Rate or Equity Reversion. If any of these terms are unfamiliar to you, then some education will be required. All successful real estate investors go through this education.
A worksheet like this one will provide a clear idea of the potential investment, especially when picking from several possible properties. When you work with me, this is one of the tools I can provide for you.
Contact Me to learn more about real estate investment opportunities in the area.
