Bob Nelson – What a Sound Investment Looks Like

Let’s talk a little bit about what a sound investment looks like.

Featuring:
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker

Marcia Edwards: Sometimes you think you see a good thing, it looks good on paper or online and you’re going to take a closer look. What do you look for to make sure that you’re not buying a lemon?

Bob Nelson: First of all, make sure that if you are investing something that you understand it. Just because someone says it’ll be a high return, not necessarily. It may have the potential of a high return, but in other instances, the economy changes or a tenant moves out or whatever, discoveries are made concerning the nature of the property and so forth. Stick with what you know. First of all.

Marcia Edwards: Opportunity.

Bob Nelson: If you don’t know anything, call Marcia or call me. We’ll help you.

Marcia Edwards: Opportunities, you use that word, Bob and opportunity is about through the lens of your skill set, your access to funds and your ability to perform on the promises you make to the property when you buy it with an upside that’s potential but not reality yet. That’s a concern I have. A lot of people that buy a fixer upper also turn and sell a fixer upper because during their ownership they did not have the wherewithal to perform what would be needed in order to maximize the opportunity.

Bob Nelson: and that is so true. Yes, you may be able to quote unquote steal something because of its condition and then you find out later that once you have cured that condition, you’ve effectively overpaid for the property. You have more in it than you can get back out. So again, consultant an expert. If you’re not familiar, well even if you are familiar, consult another set of eyes. That is so important, consult another set of eyes.

Marcia Edwards: Even if you think, I’ll do it myself, I would go ahead and get the bid on that roof or whatever it is you’re thinking is going to be something you’re doing yourself because life happens. If you are injured and you could not perform those tasks, would you be overpaying by having to have a third party complete the work.

Bob Nelson: And that is so critical. We are experts in our own areas of real estate as it deals with an investment. Now you may say, well, hey, Marcia sells houses. Yeah, a house is an investment with the idea that I’ve invested a certain amount of money with the expectation of a profit later. Also, potentially being able to use it myself as my personal residence, but it’s always a profit motive that drives us.

Marcia Edwards: We’ll look at sound investments and what they look like again, next program.

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.