Top Ten Tips for Creating “Wake-Up Money”
- Buy residential properties –houses, condos and townhouses. Stay away from land and commercial real estate unless you are an experienced investor or are buying as a business “user”.
- Buy “mainstream” houses.Buy properties that are at or below the average sales price. Buy properties that appeal to most buyers. Avoid high priced or unusual properties.Buy houses with at least 3 bedrooms and 1.5 bathrooms. If possible, buy properties with a garage.
- Don't buy with partners,unless you have to. If you have to have partners, make sure they have the same goals and values, are of similar age, and have job, geographic, and marriage stability.
- Believe in the long run.Real estate markets are cyclical but the long-term trend has been up.Hang in there for the long run. The great investor's lament is “I should never have sold that property.” The other investor's lament is, “I could have bought that property for $_________!”
- Take care of your property and it will take care of you . . .It's your “golden goose.”If you don't like property management or are too busy, either hire a professional property management firm or buy condos and townhouses. They take a lot less management. The homeowner's association takes care of most of the property management.
- Get started early.Put time on your side.Albert Einstein was once asked what he thought was the most powerful thing in the world. His reply,“compound interest.”Don't wait to buy real estate.Buy real estate and wait!
- If you don't have the money, make a plan and a commitment to get it.(Consider borrowing your investment money out of the equity in your personal residence.)
- Know your “enough.”How much “wake-up money” do you need? Know when you are ready to stop accumulating property and start paying off what you have - and enjoying life!
- Work with knowledgeable people.Pick Realtors, accountants, attorneys, and property managers who know what they are doing.
- Have a goal and a plan.Develop your goals and a plan to achieve “Wake-up Money.”
The “Wake-Up Money” Easy Investment Analysis and documentation was developed by Larry Kendall and The Group, Inc. Real Estate, and Tim DéLeon of Focus 1st,LLC, and all information associated with it is copyrighted and is used with permission.