INVEST IN RESIDENTIAL INCOME PROPERTY
INVEST IN RESIDENTIAL INCOME PROPERTY
We were at one of those
"Invest In Real Estate" seminars at the Los Angeles convention center in April,
2006. Suze Orman spoke to the crowd and said, "I'll bet you'd like me to
tell you what's going to happen in the real estate market, wouldn't you?
Will real estate go up? Will it go down?" (then she paused for
effect, and said...) "I DON'T KNOW!"
Of course, no one knows what will happen in the future, but investing in real
estate - for instance - putting $40,000 as a down payment on a beautiful new
house - certainly has more substance than buying shares of some stock.
MISCELLANEOUS THOUGHTS
Years ago, Mark and I were on an Alaskan cruise. We noticed, after visiting with the rich old folks in the dining room, that they had a common thread -- they ALL OWNED INCOME PROPERTY. That struck us as significant. Within a couple of years, we invested in our first income property.
When you own property, you own something that's tangible, that
you can touch - unlike stocks and bonds - it's a solid investment. Sure, property values are
cyclical. What goes up, must come down. But overall (and over time),
property has been the safer investment!
When you're leaving for a property shopping trip, see if you can get a GPS
unit (Global Positioning Satellite) with your rental car. Or, take a
portable one (borrow a GPS from a friend if you haven't got one). A
GPS will really help you find your way around in unfamiliar territory.
Also, try to plan several days (we always go for a week) to get to know the
market and learn the builders, rental market, housing prices, etc.
Don't let a Realtor talk you into anything. DO YOUR
HOMEWORK and be responsible for making the best purchase yourself.
GO FORTH AND BUY INCOME PROPERTY.
DO YOUR
HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO
YOUR HOMEWORK DO YOUR HOMEWORK
DO YOUR HOMEWORK DO YOUR
HOMEWORK
Where to invest
- Right now, we HIGHLY recommend Austin, Texas
(not Dallas, not Houston...)
Buying a new home from the builder
Tenants
Property Management
Never pay capital gains tax - 1031 Exchanges
Depreciation is your friend
Leveraging your money (it's a beautiful
thing!)
Tenants in common -
TIC Investments
Excel Spreadsheet
Investment Property Analysis worksheet
(note: you must have Excel on your computer to open this)
When To Sell
Miscellaneous - And
recent remarks by Suze Orman