|! Talk to us and let us show you the difference!
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
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.
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
|Thank you for visiting Palomar Pacific.
Please call us at 760-519-4410
and get started finding your new home!
Mike @ PalomarPacific.com