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Frequently Asked Questions | |
Is this only for the rich? |
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| Is this only for the rich? No. It’s only for those who want to become rich over time, or those who wish to maintain and build upon their current wealth. |
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| How much money do I need to get started? Everyone has different goals and needs when it comes to Real Estate investing. We have found programs that will allow those with little capital to get started for nearly zero out of pocket. Conversely, even the wealthiest investors should not invest more than 20-30% of the purchase price of the property so that rate of return can be maximized. |
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| I heard the economy is bad – is
it a bad time to invest? In my experience, periods of economic downturn usually turn the Real Estate market into a “buyer’s” market. Fewer people are purchasing Real Estate in bad economic conditions. Interest rates tend to be lower. These trends can create favorable conditions for those who are purchasing. Rents will typically hold steady, or decline only slightly in these periods. These challenges are easily outweighed by the favorable purchase conditions that can be found in “bad” economic conditions. |
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| What is passive income? An investment that returns income to you with no direct effort on your part. |
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| How do I make money? There are two main ways to make money in Real Estate. Flipping properties (also known as buy-fix-sell), can certainly make a nice short term return on your investment. However, it is a risky venture and does nothing for generation of long-term wealth and passive income. In order to create wealth and generate passive income the best strategy is to hold properties for a long period of time. As your holdings mature and start to become free of mortgages you will begin to increase your net worth and generate passive income. |
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| How quickly can I
make a profit? It is possible to create a moderate amount of instant net worth (equity) in your first Real Estate purchase. It is also possible to create some monthly income from a properly structured investment. However, we encourage our investors keep the long-term in mind and not dwell on the “get-rich-quick” mentality that dooms many would be investors. |
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| How do I manage my properties? Unless you have experience in Real Estate management or are willing to learn some things the hard way, we recommend enlisting the services of a reputable management company. We can help you find the management company that best fits your investment goals |
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| Do I have to deal with tenants, perform maintenance, and make repairs
to make money in Real Estate? No. Utilizing a management company places all of the typical unpleasant tasks that accompany “being a landlord” on the management company (advertising, tenant screening, leasing, maintenance and repairs, etc…) |
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| How do I find good properties? Unless you have many hours to research, and search for the best properties, we recommend utilizing a professional Real Estate agent who has personal experience in Real Estate investing. Rob has been investing his own money in Real Estate since 1993 and has the experience and expertise required to help you locate the best property to suit your investment goals. As a Real Estate professional he has access to our area’s Multi Listing Service, which provides an enormous amount of information on properties available for sale in our region. Utilizing a Real Estate professional will save you many hours of time, and will save you hundreds, if not thousands, of dollars. |
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| How do I evaluate whether or not I can make a profit? Making money in Real Estate investing can be defined in several different ways: Monthly cash flow, increased net worth, and tax savings. During our consultation with you, the investor, we will come to understand your personal goals and requirements and will be able to analyze different properties to determine if they meet your goals. We have developed an easy to understand analysis that will be performed on several potential properties. The pros and cons of each scenario will be explained and you will be able to make the best decision based upon your personal objectives. |
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| Am I too young to start? A typical mortgage runs thirty years. If your parents purchased an investment property for you at birth it would be paid off and you would be receiving passive income at age 30. If you start for yourself when you are 30 you will have your mortgage paid off at age 60. You are never too young to start. |
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| Am I too old to start? Starting an investment career later in life certainly can be a wise venture. Holding Real Estate in a tax shelter can be a very wise move as you reach the golden years. Not only can you generate monthly income from a properly structured Real Estate investment you can easily pass the property to your heirs. You should contact a tax attorney for specific advise in this area. |
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| How much do I have to know before I contact Rob Key? You only have to know that you want to make a positive financial change in your life that can provide for you and your family later in life. Contact Rob today! |
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Rob Key, Owner / Broker
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