Jeannie Niles Real Estate Investment
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What Type Of Property Should I Own?
When I work with a client, I try to match the type of property to the individual investors portfolio and personality.
Personality??? I never want a client to worry about their property or their investment portfolio. Real Estate investment should be exciting as well as profitable. So matching the type of property with an individual is very important. A first time investor should not purchase a fixer property in a marginal area. This type of investor would better be served with a small multi-family or even a single family home in a very good area.
On the other side a general contractor that is very strong financially could handle a fixer-upper multi-family in a marginal area.
There are no bad properties, just properties wrong for different investors.
Rules I Have for My Clients
No one should own commercial property unless they have at least $1,000,000 net worth exclusive of their primary residence. Commercial property is just too risky for most investors, in my opinion.
No one should own only one large property. With your entire investment in a single property, it’s possible to lose it all in an earthquake or fire. Also, you will not be able to refinance easily, and if you need to sell for some reason, all your capital gains are triggered for the tax man.
Owning more than 17 properties sometimes creates borrowing properties in that some lenders have a problem with this many owned properties. Once you get to 10 properties, it’s okay to start looking at combining equities into larger properties.
Owners should always have cash reserves either in the form of cash, or a credit line to handle an unexpected situation. Check out “Horror Stories in Real Estate” for examples.
Basic Investment Info
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While your strategy will change depending on the market, there are 4 primary ways to make money in real estate.
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When crunching the numbers on a property, you'll often encounter some real estate lingo. Here's what things like 'cap rate' mean, and how to use them.
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There are some basic strategies that apply across the board no matter where you are investing or what the current economic conditions are.
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Good brokers don't simply sell you property, they help you define your investment strategy.
Investment Strategy
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Now is the time to be buying! Aggressively priced properties are selling over listing price with multiple offers.
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While almost everyone says they invest for “MONEY,” in reality, we all invest for what we expect the “MONEY” to provide us. Read on for info on defining realistic goals and developing a strategy to achieve them.
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Compared to other types of investments, real estate provides you an incredible amount of control over your property.
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When I work with a client, I try to match the type of property to the investor's personality and portfolio.
Optimize Your Portfolio
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I always encourage my clients to “never be sellers” but there are times when a property needs to be eliminated from a portfolio.
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If you currently have an option loan, also known as an exotic loan and want to get out of it, there are some serious issues to address.
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Good property management is the number one factor in the success of your real estate portfolio.
Every investor's situation is unique, and I have over 25 years experience solving problems. Use the form below to ask me about your unique needs.
Jeannie Niles Real Estate Investment
P.O. Box 317
Palm Desert, CA 92261
P: (760) 360-4020
F: (760) 340-9069
E: jniles@realestate-investment.com
