Step One: Do Your Research
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Several important factors should be considered when deciding if a property is a good investment for you:
- Demand for the area
- Economic growth
- Pricing trends
- What makes the property desirable?
There are many resources online to get educated about real estate investing. Below are three of the most informative:
http://www.creonline.com/
http://www.nreionline.com/
http://www.reiclub.com/
If you find this to be a daunting task, please contact the Investment Specialists at Heritage Properties; we are here to educate you! Which brings us to step two…
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Step Two: Contact a Professional |
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Choosing a realtor with proven investment strategies and a solid financial background is the key to success.
Heritage Properties brings the following benefits to you as your Real Estate Investment Professional:
Broker Relationships in prime investment areas:
AZ – Phoenix
CA – Redding, Sacramento, Marin and Sonoma Counties
HI – Maui, the Big Island
ID – Boise
NV – Las Vegas
OR - Portland, Medford, Coos Bay
Our Investment Team has access to many opportunities before they become available to the public
Direct access to our network of investment professionals: General Contractors, Tax Attorneys, CPAs,
Financial Wealth Managers, and 1031 Exchange Companies
Multiple lending solutions to maximize cash flow - our in-house lending partner, Concentric Capital, can be reached on the web at http://ccapinc.net
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Step Three: Plan an Effective Strategy by Addressing These Key Points:
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What do you want to accomplish with the investment?
Fix and flip
Develop
Hold and rent
Live in to establish primary residency for 24 months
Time Frame - How long do you plan to keep the property?
Protect your downside - know what you’re willing to lose
Know your risk tolerance
Aggressive
Conservative
Private Money Investments to REITS
What are your expected returns?
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Step Four: Run the Numbers |
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Do you know all of your costs associated with the investment?
Factoring debt service by knowing the right loan for the investment
Tax implications
Be sure to consider all factors when determining the NET return on your investment.
Avoid Analysis Paralysis - You can spend so much time analyzing a decision that analysis itself becomes a substitute for action. By gathering so much data, you become overwhelmed and can’t make an objective decision.
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Step Five: Exit Strategy |
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Look to tax shelter opportunities to protect your gain
Have a plan to get out of the investment – How soon do you wish to sell or exchange the property?
Know the tax implications – Capital gains tax requirements on investment properties depends on what tax bracket you’re in, typically they range from 20-35 %
Look to exercise exchange opportunities – Tax deferred exchanges can be financially beneficial by allowing an investor to move the gain into additional investment properties
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