|How to Succeed in Property Investing
NC Investment Properties by:
|Jamar Properties Inc
Building trust and Quality in North Carolina
Is there really a 100% safe way to invest in real estate? No, there is NO plan that will
guarantee your success. No one can guarantee that you will make a profit. However, if
you follow these guidelines, you will have a greater chance of being successful. Instead of
potentially making costly mistakes, you will be able to generate a steady stream of extra
income and you will be building your equity.
The following topics will be covered in this series of articles:
• Setting clear investment objectives
• How to find profitable investment properties
• How to mine properties for profit
• How to make the initial offer
• Navigating the financial maze
• Closing the Sale
• How to select a remodeling contractor
• Renters, Renters, Renters
• Tax Time – Pay uncle Sam
• Miscellaneous real estate investment factors
Let’s start on the road to discovery:
Setting Clear Investment Objectives
Start with a set of clear objectives for any property you intend to buy. You might be asking
what is the relationship between real estate investing and objectives. The investment
objectives will give you the track to run on. There is a direct relationship between the level
of clarity about what you want and virtually everything you accomplish in life. Successful
men and women invest the time necessary to develop absolute clarity about they really
want. It is like designing a detailed blue print for building a custom home before they begin
construction. Like a blueprint for a building, your investment goals must be written down
on paper. Do NOT skip this step or you will be helping some else accomplish their
Start by writing your investment goals or strategies on paper. Which money making
strategy is best for you depends on your tolerance for risk. You might be happy making
only 15% on a quick sale, or you may need $100,000 a year to maintain your current
living style. You might want to build your current net worth over time, getting continuous
appreciation on your properties, and generate some extra income or enough rental cash
to become financially independent. Keeping a clear picture of your investment objectives
will increase the likelihood of finding the right properties.
Your investment objectives will also need to include some of the following items: What kind
of home should it be, Single family vs. multfamily, condo or detached, how many rooms will
the property have, a good or medium neighborhood, age of the property, who will
maintain your properties, high priced or low priced. You will need to determine how long,
you want to hold the investment property. Are you planning to flip your investment in 5
years or less? In this case, you might want maximize your monthly return by obtaining a
low variable rate for 5 years. If this is your objective, it might be necessary to take some
precautions in order to avoid getting burned in the fifth year. For instance, start looking to
refinance the mortgage loan in the middle of the fourth year.
If your aim is to hold the investment property for 20 or 30 years, then the approach needs
to be different. You can still choose to pay off the property in a short period of time. In this
instance, you might want to get a 15 year mortgage. Another important factor that needs
to be taken into account is the age of the investment property. It is a good idea to select
properties that are under 10 years old in order to avoid that high maintenance fees that
come with an older home. Please remember that the secret to long term real estate
investing is renting the property for less or close to your yearly expenses.
Do not forget to make your objectives SMART:
1. Specific – Your objectives need to specify what they want to achieve in detail.
2. Measurable – You should be able to measure whether you are meeting the objectives
3. Achievable - Are the objectives you set, achievable and attainable?
4. Realistic – Can you realistically achieve the objectives with the resources you have?
5. Time – When do you want to achieve the set objectives?
Jamar Properties Inc has a free property investment template you can download to help
you set your investment objectives.
Now that you have a clear set of objectives, it is time to start searching for our investment
property. This will be the topic of my next article.