As an experienced
property investor and licensed Realtor® and Mortgage Broker, I can
provide a wealth of knowledge when it comes to Investing in Real Estate.
Over the years I have provided such education to many clients who have
gone on to achieve maximum returns on their investments.
I still offer advice
and education to individuals and investment groups on a regular basis.
To find out more about my Investment Education offerings or to structure
a personalized training session(s) for yourself or your investment group,
please contact me by phone or e-mail to: investments@jupiterwellington.com
In the meantime,
I hope you find these ten tips useful:
1. Purchase a property
that is affordable and profitable. Real Estate is a numbers game. If
the numbers work, you can be a winner. Find a property that will create
a positive cash flow.
2. Minimize the
risk. It takes time and energy to research your investments. The same
is true about Real Estate. If you take the time and energy, the risk
is quite low.
3. Find a motivated
seller. Don’t be afraid to ask a lot of questions. Motivated sellers
will often let their properties sell below market value, which creates
immediate equity when you close.
4. There is never
a bad time to buy Real Estate. However, you do have to know what moves
to make in a particular marketplace. Please feel free to contact me
for further explanation.
5. Real Estate has
been traditionally long term consistent growth. Be patient. Allow the
property to appreciate while someone else is paying all your expenses
and you get all the tax advantages. Example: Let’s assume a $150,000
property appreciates at a conservative 5% a year over 15 years. You
put a 10% down payment on the purchase. In 15 years your 10% down payment
of $15,000 appreciates to $311,412.
6. Acquire the property
with the least amount of down payment. Keep your cash for other additional
Real Estate purchases. Don’t forget, someone else is paying all
your expenses and you are receiving a positive cash flow each month.
Use other people’s money to make money for you.
7. Get your financial
house in order. Obtain copies of your credit reports. Review it for
inaccurate information and then have that inaccurate information deleted.
Always pay your bills on time. In today’s market, you can buy
almost anything with good credit.
8. Select an area
to invest in, preferably close to home. Purchase properties within that
area only. Example: Within 10 miles or 30 minutes. Personally, I own
14 properties all within 15 minutes. You don’t want to spend an
excessive amount of time performing property management.
9. Protect yourself
at all times. As an investor, always include some type of “jump
out” clause. Example: Contract is contingent upon the appraisal
meeting the sales price; offer is subject to a satisfactory home inspection;
offer subject to obtaining financing at an interest rate not exceeding
7%.
10. If you have
money to invest but have no desire to be a landlord, you can hire a
professional management company to handle whatever you want. A side
benefit is that the management fees are tax deductible.
