Thank you so much for checking out the Real Estate Today podcast. We continue our discussion of what to do with your extra spending cash, if you have it.
Bob: I’m Bob Nelson, Eugene commercial real estate investment broker with Pac West Real Estate Investments.
Marcia: And I’m Marcia Edwards, residential broker with Windermere Real Estate. We’ve been talking about the fact that we’ve learned from our recession, and we’ve learned that cash flow is essential, and having endurance when times shift is important. So we’ve all … Well, I think a lot of us, have decided we’re going to put some money in the mattress.
Now the mattress is getting a little tight, and we’re saying “Can I spend more? What should I do next and when should I make a move in investing?”
Bob: Well a great idea is get two months ahead on all of your mortgage payments. It gives you a mental state that is absolutely amazing. When you know that next month’s payment is covered, and you know the following month’s payment is covered, you have a feeling I’m in charge, I’m in control, and I have the capacity to regulate my life. Now that’s a great feeling.
Marcia: And I don’t think you recognize it until you’re there. You don’t realize that you’ve had something nipping at your heels all along. And when that little nipping goes away, it’s empowering, it’s freeing, but it’s also an opportunity.
So once you’ve done that, you’ve kind of slowed the dragons down behind you, and you’re taking a look at what the opportunities are forward, you’ve got to take an analysis. First at your needs. What is your baseline? Not to barely get by, but what meets your lifestyle right now for your needs in cash flow.
Bob: Once this is covered and you’ve got the mindset, don’t miss the opportunity of potentially getting ahead with an investment that will pay you during your retirement years, or even your pre-retirement years. It’s a great feeling to have a source of income that’s not dependent upon your employment.
Marcia: A passive income also, possibly.
Bob: A passive income. Yes.
Marcia: At some level. So this is where you’d want to get a consultant in the real estate industry, I think myself for single family residential, up to possibly four units, and when you cross that line jump in with Bob. In regards to what your goal is, how long term you are able to let go of the cash, what the cash flow needs are versus the investment in equity. There are some tricks to getting an upside at the time of the resale of your investment property, over a monthly payment. What’s important to you?
Bob: And as you identify what’s important to you, it’s pretty amazing to have the mental flexibility to take action. To be able to capture that event and put a situation, and put the money to a use that will pay you dividends in the future.
Marcia: Empower yourself. We’re just saying think now about it, since you have the latitude to do so. I’m Marcia Edwards, Windermere Real Estate.
Bob: And I’m Bob Nelson, Eugene commercial real estate investment broker with Pac West Real Estate Investments.
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