Thanks for checking out the Real Estate Today podcast. We begin a series right on Cash Flow Properties.
Bob: I’m Bob Nelson. Real estate investment broker with Pac West Real Estate Investments. I’d like to go through some pretty basic information concerning real estate investing. Now, for those of you who have already done that and you say, “Wait a minute. Basic. I’m turning this sucker off. We’ll go find something else to listen to.” Don’t do that because I’d be willing to bet that you’ve got a second generation following you, that if you have done the investing, you have done the major decision making process. I’d be willing to bet, they haven’t done anything or maybe swept sidewalks and washed window, etc. Do they understand why you’re doing what you’re doing? If you happen to keel over, you better have a backup plan, otherwise, the things are going to get liquidated. That’s no good, so let’s take a quick look at this thing. I would suggest that you write this down. Cause this to become part of your investment plan.
Ask yourself the question, why am I investing in real estate? Why am I not investing in the stock market? Why am I not investing in the bond market? Why am I not just going fishing on the weekends and figuring that Uncle Sam will carry me in retirement?
Well, that last one, that’s a really bad bet. It’s your choice as to which of the three tables from which you would dine. I’m solidly in the income producing property variety of investing. For most of us, we’re concerned with creating a retirement resource of a dependable monthly income to support you comfortably through retirement. Your goal then, if this is consistent with your game plan, you’re going to forgo a portion of the income that you’re receiving today, investing it in something that will grow into a future cash flow source. That’s consistent with, I’m going to say, 90% of the passive investors.
The rest of you who buy real estate for your business and so forth, that’s still consistent, but it’s not quite there. Most of us have to use borrowed funds in order to make the acquisition. The concept being this one, if I can cover the down payment and I can get a loan from the bank, the tenets going to pay for the rest of it. They’re going to pay a rent that’s going to cover the property taxes, property insurance, maintenance and repair, and the mortgage payment. There’s the concept.
I’m going to do more of this in our next show. I’m Bob Nelson. Real estate investment broker with Pac West Real Estate Investments.
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