We’ve been talking about setting a game plan. It’s not January anymore but you do have New Year’s resolutions that you haven’t given up on yet, and let’s not give up on them. Our conversation is about changing habits.
Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: If you have $10 to live on and you take $2 or before you get your check and you have $8 to live on now, I bet you can live on it. Well, not eight but, the concept of 80% of your income. Could you peel something off with a plan and strategy to move forward long term?
Bob Nelson: If you do you will reward yourself handsomely. The younger you are, of course, when you start this, the larger will be the amount when you hit retirement. That assumes that with an advancing age that advances towards a retirement, either desired or forced.
Marcia Edwards: I’ve got to say, it feels good, security feels good. Financial security is great for relationships, for marriages. It’s a good thing to do because you’ve got, not just a safety net, but it builds into something. It’s got a life of its own in such a positive way. You can go to a strategic planning meeting on your own behalf, how when it gets to $100,000, $50,000 what you’re going to do to springboard it to the next level for a higher return on that cash.
Bob Nelson: What you’re ultimately wanting to do is take that accumulation, invest it into something that generates a profit, either cash flow now or increased value later, or hopefully both. That’s what I look for in an income producing property. I like to see a nice amount of cash flow and a nice amount of value growth. I can’t control value growth, but I can by how I select the property, by its location, by the nature of the asset. If it’s an apartment complex I know that’s a residential income property and I know that there should be people that would be willing to occupy the thing as long as I produce a nice and safe place to live. All of these things grow for you.
Marcia Edwards: They occupy it and they pay a mortgage on your behalf, and maybe they even give you a little savings plus appreciation in the long term in Real Estate, which is very likely based on history. A long term five year plan you’ll have appreciation in the market over your initial investment.
Bob Nelson: The beauty is you have the opportunity later to harvest the equity growth, the increased value that adds to your equity, you can harvest it and buy a second property. You could harvest the whole thing and do tax deferred into a larger property. You’ve got a great opportunity.
Marcia Edwards: It starts with good habits.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30 on KPNW for the “Real Estate Today” radio show.
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