Investor Strategies

Prepare for the Future

• Buy your retirement home now
• Buy a vacation home and enjoy it two weeks a year
• Obtain one new rental property per year
• Have all rentals mortgage free at retirement
• Have a self-directed IRA or SEP in real estate

Strategies

• Buy in the best location you can afford
• Look at a building not for what it is, but for what it can be
• Don’t buy the unique property
• Pay for good talent to do your renovations
• Investment must be economically sound
• Owner managed to reduce expenses and maintain control
• Holding period 7-10 years
• Additional principal payments will accelerate amortization
• Shorter term will increase your equity

When Considering an Investment...

• What rents & sells best
• Reliable appreciation rate
• Realistic vacancy factor
• Reasonable fair market rent
• Reasonable operating expenses
• Realistic projected sales costs

The 8 Basic Questions

1. How many dollars must be put into the investment?
2. When must they be put in?
3. Will there be periodic negative cash flows?
4. How many dollars will come out of the investment?
5. When will they come out?
6. Is liquidity a concern for you?
7. Do you need the tax advantages?
8. Do you want investment to provide income at retirement or do you want to sell the properties and use the profits to finance your retirement?