Now is the time.
Now is the time to take advantage of GREAT prices on
investment real estate. Smart investors BUY when
prices are down, and right now they are!
There are some simple rules to be a smart investor:
1. Don’t invest more than you can afford to loose.
Although it is very unlikely that you could loose all of
your money in investment real estate, it is possible, so
don't be foolish and put all your money in one basket.
2. Do your research. Know what you are buying.
Have the property inspected, know the local market,
understand the current economic conditions.
3. Location, location, location. When investing in
real estate, location is not just important - it is
everything! There are several factors in choosing a
good location that must be considered:
* Proximity to you.
* Proximity to transportation.
* Ease of Access.
* Appropriate to intended use.
* Neighborhood.
* Community.
4. Return On Investment / Solvency. If you pick a
good property, in a good location, and pay a good price
for it - It is likely you will have a good return on your
investment. BUT, you MUST think long term, 5-10 years.
If you are looking for a quick turn around (flipping
houses for example) it is much more difficult in today's
market to get a good ROI. Because of that, it is critical
that your property be solvent.
5. Diversity. For good real estate investing, the old
saying, "Don't put all your eggs in one basket" simply
means, "Don't depend on a single tenant for income."
For small real estate investors, it is important to have
multiple tenant buildings with five or more tenants and
with staggered leases. That way if one tenant leaves,
you only have affected the income by about 20%. The
staggered leases substantially reduce the risk of an
empty building.
6. Pooled Funds. You can often get "more bang for
your buck" by combining your investment with others.
This is often done through limited liability companies
(LLC), limited partnerships (LP), real estate investment
trusts (REIT), and corporations. Usually the investors
are better off with a corporation or LLC because they
retain voting power over their investments. In any
pooled fund, there is a manager who is paid from the
income of the investment. While this arrangement
reduces your return a bit, it also allows you to "buy"
management and professional help at a fraction of the
cost of an individually owned property.
7. Get good professional help. Good professional
help will invariably save you more money than you will
pay for it. If you are not a seasoned real estate investor,
with a strong back ground in business, finance, law,
construction and insurance you will invariably make
expensive mistakes that may turn a potentially profitable
investment into an investment nightmare.
Now is the time to take advantage of GREAT prices on
investment real estate. Smart investors BUY when
prices are down, and right now they are!
There are some simple rules to be a smart investor:
1. Don’t invest more than you can afford to loose.
Although it is very unlikely that you could loose all of
your money in investment real estate, it is possible, so
don't be foolish and put all your money in one basket.
2. Do your research. Know what you are buying.
Have the property inspected, know the local market,
understand the current economic conditions.
3. Location, location, location. When investing in
real estate, location is not just important - it is
everything! There are several factors in choosing a
good location that must be considered:
* Proximity to you.
* Proximity to transportation.
* Ease of Access.
* Appropriate to intended use.
* Neighborhood.
* Community.
4. Return On Investment / Solvency. If you pick a
good property, in a good location, and pay a good price
for it - It is likely you will have a good return on your
investment. BUT, you MUST think long term, 5-10 years.
If you are looking for a quick turn around (flipping
houses for example) it is much more difficult in today's
market to get a good ROI. Because of that, it is critical
that your property be solvent.
5. Diversity. For good real estate investing, the old
saying, "Don't put all your eggs in one basket" simply
means, "Don't depend on a single tenant for income."
For small real estate investors, it is important to have
multiple tenant buildings with five or more tenants and
with staggered leases. That way if one tenant leaves,
you only have affected the income by about 20%. The
staggered leases substantially reduce the risk of an
empty building.
6. Pooled Funds. You can often get "more bang for
your buck" by combining your investment with others.
This is often done through limited liability companies
(LLC), limited partnerships (LP), real estate investment
trusts (REIT), and corporations. Usually the investors
are better off with a corporation or LLC because they
retain voting power over their investments. In any
pooled fund, there is a manager who is paid from the
income of the investment. While this arrangement
reduces your return a bit, it also allows you to "buy"
management and professional help at a fraction of the
cost of an individually owned property.
7. Get good professional help. Good professional
help will invariably save you more money than you will
pay for it. If you are not a seasoned real estate investor,
with a strong back ground in business, finance, law,
construction and insurance you will invariably make
expensive mistakes that may turn a potentially profitable
investment into an investment nightmare.
| Palomar Pacific |
Real Estate Services
Real Estate Services
| Get it done. |
Invest Smarter!
| 800-762-3144 Mike@PalomarPacific.com |
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Talk to Mike and let him show you the difference!