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The Fine Print

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My daughter and her husband, Jake, just bought a home in Los Angeles.  She commented that Jake must have been the realtor's worst nightmare.  This is  because Jake is a lawyer, and he read every line of every contract and document with a highlighter and a pen!  I laughted and agreed that would be pretty intimidating. But, the truth is, knowing, understanding and being able to explain the cotract is the most important responsibility your realtor has. If you're thinking of buying a home, look for a realtor who knows that and can do that.  And, make a commitment to be, at least a bit, like Jake. Read the contracts before you sign them and ask questions.You need to be informed and knowledgeable to make good decisions and, as transactions go, buying a home is a BIG one!

Investing in Real Estate Part 3 - Financing your Investment

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In the first two segments of this investment series I discussed the importance of clearly defining your real estate goals and some of the costs associated with owning rental property. Now, let’s take a quick look at how to finance your investment. The investment option that requires the least amount down, and that can also yield the best results over time, is the buy and hold scenario. For this type of investment, you’ll need to put down about 20 - 25% of the purchase price as a down payment; you will also need enough in reserves to do any necessary repairs and improvements to the home and make those first couple month’s mortgage payments. Where does this money come from?Well, ideally, you save it.If investing in real estate is a dream of yours and you don’t currently have that kind of money – it’s not too late to start saving now!There are some great budgeting apps that can really help you get your finances in line and work toward your goals.I like “You Need a Budget” and “Mint.com.” You…

Investing in Real Estate Part 2 - Expenses Associated with owning Rental Properties

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In the first segment we went over the importance of getting clear on your investment goals and discussed three possible scenarios for real estate investment.
The first is the fix and flip scenario – this type of investment can yield a quick return, but it is risky and hard to find in today’s market conditions.
The second is an investment for cash flow.While the property may increase in value over time, the main objective here is to generate a passive cash flow.To achieve this, an investor will typically put a lot down and look for a property with low monthly expenses.
The third is a buy and hold scenario.Here the investor is looking for long term gain and the appreciation over time.Typically, the plans on holding the property at least 7 – 10 years and may put as little as 20- 25% down.The rent should cover expenses initially, but over time the investor will see some passive income (in addition to the appreciation in value) as rents increase.
So, when we talk about getting enough rent to c…

Investing in Real Estate - Getting Clear on Your Goals

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INVESTING IN REAL ESTATE - GETTING CLEAR ON YOUR GOALS

Did you know that investment in real estate has out preformed most other types of investments in the last 100 years?If you’re like me you get it, you realize that real estate is a solid investment and a way to growth wealth, but you don’t quite know where to start.
Most assume that the place to start is with the money needed to invest, but I would suggest that the best place to start is with clarity.Know what you want to gain from your investment.
Thanks to HGTV and other DIY networks, a lot of folks think of a “fix and flip” when they think of a real estate investment.In this scenario, you find a distressed property, buy it for considerably below market value, renovate it and sell it for a profit.This type of investment can yield a quick profit, but it is risky.People underestimate what kind of problems they’ll find in the home and how much it will cost to repair them.It has also been challenging to find properties for sale below ma…

The Virus, The Economy, The Market and Me

What a tumultuous and unprecedented time we find ourselves in. Like most of you, I'm becoming consumed with searching the news and the Internet trying to learn all I can about this Corona Virus or COVID19.  Two days ago I was apt to blame the media for a lot of hype and generating hysteria - but now whole countries have closed their borders, the NBA has suspended its season, and most of the universities in Colorado have sent their students home.  You have my attention COVID 19, and here's what I know to be true:

THE VIRUS
While we're learning more each day, what we know for sure about this virus is that it is highly contagious and can be life threatening to the elderly and those with compromised immune systems or underlying medical conditions.  The worldwide figures currently suggest a mortality rate of 3 - 6%, which is significantly higher than that of  the flu.  However, it is likely that many thousands of people have the virus who have not been tested or diagnosed.  If …

Making some moves in 2020!