Posts Tagged ‘planning’

Have you begun to evaluate the performance of your real estate investments this year?

December 22, 2011

This is a great time to do a little homework concerning your investments and whether they are meeting the return guidelines that you have determined are appropriate for them.

Have you taken on some type of unstated risk and previously undisclosed risks?

Have you taken on too much risk in your investments?

Have your investments revealed that they are considerably more risky then you thought?

Are you being properly compensated for the amount of risk that you have taken?

Have the characteristics of the investment changed in such a way as to put at undue risk the total investment?

Is the investment performing in a way that is in line with its stated purpose?

Do you have a stated purpose for your investments?

Has that purpose changed?

Do you still trust the staff managing the investment?

Is the amount of debt appropriate for the investment?

Are the expenses in line with the budget? If so great is not what should be done to bring them in line or is this a reason to divest yourself of this investment?

What is the exit strategy for this investment?

What is the timeline for the exit of this investment?

How does this investment fit into my investment portfolio?

Is the overall market or demographics for this investment a good one or a poor one?

Are there some other evaluation criteria that apply to your investment that are not outlined above?   If so drop me an email so I can add them!

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Are you growing your business?

February 9, 2010

One of the things I want to do this year is grow my business. So I began looking for opportunities to invest and to put together another group investment or syndication. I found a small apartment complex in one of the communities close to my home base and decided to go and look at it b/c it was a screaming great deal! I had to drive a little while to get to it but not too far. This neighboring community is very different from my home base but If I invest again in this area I will have a little experience in the area and may be able to get better results then I did when I first went into the area. This particular property is a foreclosure that appears was just over leveraged and once the debt service became too much for the previous owners they gave it back to the bank. The bank has hired a out of town broker who co-brokered the deal with a local guy. The local broker is a good guy and understands this market very well. He met me at the property and showed me around. Luckily for the bank and for me if I buy it the property has a guy looking over it and keeping the copper from growing legs. “growing legs” means things just get up and walk off i.e. get stolen borrowed or otherwise disappear. There are very few worse things that can happen then your HVAC’s, copper pipes, and wires growing legs. To replace those things cost an arm and a leg. I wanted to talk a bunch of pictures of the property but after I got there my battery died in the blackberry! Luckily the broker also has a blackberry and had his car charger so he let me charge my phone! After walking thru the place I decided that it as in ok shape and needs some work but nothing I think I cant handle so I made an offer to buy it all cash with no contingencies!

I did not offer the asking price b/c the agent and I talked a little about what I think about the property and about where the market it for this type of property. I think that the bank will need to take a bath on it and if I am able to help them I will try to do my part. This property would not be a good deal for me but a great deal if I am able to fix the problems. If I am not then it could turn into just a good deal. If all I can do is just buy a good deal then I should stay at home b/c good deals are a dime a dozen. What makes this business great is finding the great deal! The hardest thing in the world is to NOT BUY A GOOD DEAL. Good deals come along all the time but a great deal! Those are rare and when you have the potential to bring one of those down you have to be ready! If you have used all of your gun powder (investment capital) on good deals then when a great deal comes along you can not kill it and bring it home to feed your family b/c you have been taking all of these good deals.

If I get a good response from the bank I am going to talk to the current lone resident manager who is looking after the place to make sure nothing grows legs. I need to know what he knows and what happened to the past ownership.

If I end up buying it I will create an entire case study of it and post it on my case study page. Otherwise I will just write about my experience and see what happens.

This property is what I call a dirty ugly, ultra low-income property! I don’t call things a slum b/c in my opinion you can own low-income property and run it like a decent place to live or you can become a slum landlord! The property becomes a slum b/c of ownership 1st and foremost. If ownership cares then management cares and if management cares then resident’s care if everyone cares the place can be for lower income people but still be a great community and a great investment.

Planning for 2010

January 7, 2010

Many people work on thier goals for the new year around this time so I thought it would be great to share some of the tools that I use to help my cleints, friends, and family go to the next level in thier goals/planning

PURPOSE AND VISION
I have added a few files to my media liabrary that are adobe pdf files that you can use to help you create a summary of your purpose. By knowing what your true purpose is allows you to create a vision and from there you can develope goals and plans to reach those goals that support your vision and purpose. If you dont know your purpose then you dont know if reaching your goals will provide you with the fulfillment that you desire. Check out the media library for the pdf’s called Purpose and vision and how they work together, but more importantly why they are the foundation to any goal setting program. If you have any questions on how these are implemented dont hesitate to call me at 512-689-6742. Do you want to know why these are integral to a real estate investor? Call me or email me!


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