Tips for Successful Real Estate Investments

    • Pay careful attention to 3 key areas
      • Income
      • Expenses
      • Financing
    • Run the numbers BEFORE buying
      • Cash-flow analysis before and after taxes
      • Tax Savings or Liability
      • Project the cash-flow for the holding period
      • Disposition plan and overall investment performance over the holding period
      • FMRR – Financial Management Rate of Return is a system to capture a the points listed above. I have put together a spreadsheet to do so. Please call to learn more about getting a copy.
    • Select
      • An appreciable area ā€“ a well-maintained neighborhood
      • A low maintenance property
      • A property desirable by most people
    • Know the percentage of rentals (condos only)Ā  in the area ā€“ competition, financing restrictions
    • A good lender would advise you on all available financing options
    • Valuate the property based on several indicators taking into account expenses, taxes, financing
    • Once you purchased the property
      • Evaluate the rate of return (equity analysis) on your investment every year
      • Depending on your objective, may want to move your equity when the return drops below a certain rate
    • Moving the equity
      • Sale
      • Refinance
      • Exchange
    • IRS Publication 527 Residential Rental Property (including vacation homes) http://www.irs.gov/pub/irs-pdf/p527.pdf
    • Have a professional on your side. Work with a knowledgeable real estate agent that helps the individuals every day of the week.

 

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