Tips for First Time Real Estate Investors | #ClosingTalk Ep. 19

Written by Posted On Tuesday, 21 June 2016 06:47

So you wanna get your feet wet in real estate eh?  I am sure we have all heard the “buzz” about real estate investing.  Before you start dabbling - You need to read this.

 

For those of you who don't know me, my name is Torey (some call me "T") and I help urbanites interested in real estate connect the dot's between what they think they know and what they really need to know to be successful in today's markets.  I have a passion for building businesses too.

 

When real estate markets get “good” crazy things happen.  One of the crazy things happening in today’s market is everyone is turning into  a real estate investor overnight.  Everyone is trying to do that “flip” and hope it doesn’t “flop” (Get the pun there because of the TV show?  I thought it was creative).  People are seeing some shrewd investors making money due to decisions they made years ago or are watching shows that idolize investing in real estate.  What I really wanna convey to you today are a few key points to consider when investing in real estate for the first time.

 

#1 Hold vs Flip:  Ironically all you see on TV is people flipping real estate.  Or buying low, fixing it up, and selling high to make a larger chunk of money in a short period of time.  Fact of the matter is, you will create much more substantial wealth for yourself and your family if you buy and hold a wisely purchased investment property over a longer duration of time.  Why is this?  Mainly because when you buy and hold a property you enjoy the benefits of market appreciation, cash flow, and multiple tax benefits.  Compare this to flipping a house and you only reap the reward your lump sum profits.  Although a larger sum of money may seem worth it, you have to remember that your profits are being taxed at an ordinary income rate in the event you sell the property without owning it 12 months or less instead of a lower capital gains rate.  Better for the government, less for you.

 

#2 Timing is Everything:  Timing is super duper important.  You have to know what is going on in the markets to know what type of investment will be worthwhile for you.  In a slow or high market, you may be more about to take a conservative approach and hold the investment.  In a market shifting upwards it may make sense to do the flip because your risk is a bit more mitigated and if you catch it early in the cycle; investor grade inventory may be plentiful.

 

#3 Dollars & Cents:  Regardless of what kind of transaction you are doing, you are investing to make money & build wealth.  It is an emotionless transaction.  It is either going to make money or lose money.  Make sure you have a nice “oh shit” factor built into your numbers because things happen.  Cash is king and make sure you are making enough to justify the risk you are taking.  The deal will either work or it won’t.  If not, just move onto the next one!

 

#4 Do NOT Speculate:  The old saying is “speculators get screwed”.  People who are buying an investment predicated on making money IF this happens or that happens will almost always lose in the long run.  Why?  You need to invest on facts, not thoughtful fiction.

 

#5 Location Matters:  This is the one that everyone knows by heart, but it is the honest to god truth.  You need to pick the proper location for the investment based on your goals.  You will not be able to move the place if the location get’s worse.  So do your due diligence.

 

After looking at these tips, understand that each tip is equally as important than the next.  You also need to realize that each type works in conjunction with the next and the outcome is a combination of the 5  rules listed above.  If you have questions on how to invest as shrewdly as possible, talk to a professional who you trust.  Ask questions now before it is too late.  Remember, your only fence against the world is a thorough knowledge of it.

 

If you learned something new, you should totally do yourself a favor and SUBSCRIBE to my YouTube channel for more of the good stuff!

 

--

 

#ClosingTalk is a weekly off-the-cuff show (released Tuesdays @ approx. 3PM) that feature's Torey educating you on all things Philadelphia real estate.  No BS, just value and insight.  Because you earned

 

Torey'sThoughts is a weekly show (released Fridays @ approx. 3PM) focusing on anything but real estate.

 

Find Torey here:

 

Website: http://ToreyHowarth.com

Broker:  http://kwphilly.com

YouTube:  https://goo.gl/5KWHw8

Facebook: http://facebook.com/ToreyHowarthPHL

Linkedin: http://linkedin.com/in/toreyhowarthPHL

Instagram: http://instagram.com/toreyhowarthphl

Twitter: http://twitter.com/ToreyHowarthPHL

Medium:  http://medium.com/@toreyhowarthphl

Snapchat:  toreyhowarthPHL

Media

Rate this item
(0 votes)
Torey Howarth

WHAT I DO:  I save you time and energy by guiding you throughout the home buying and selling process.

 

HOW I DO IT:  I connect the dots between what you think you know and what you don't yet know but need to know.  The internet can make us feel like we know it all and don't need a real estate agent, when in fact what it actually does is it gives us much more information than we know what to do with.  I blend my proprietary insight gained through many conversations, observations, and years of experience with what you already know to create a useful action plan to get us from point A to point B.  For all of the moments in between those big moments, I rely on consistent communication to prevent your mind from wandering away, so we can stay laser-focused on the end goal. 

 

WHAT MAKES ME DIFFERENT:  My approach.  I am a Millennial who understands real estate by internalizing why things work the way they do.  By understanding the "why", I can provide insight on a deeper level and align you with better opportunities in any market.  I get to understanding the "why" by working really hard and caring a lot about my clients and everyone around me.

 

ABOUT ME:  I became passionate about real estate when I thought it was really cool people owned big buildings (Even cooler that people paid the owners of those buildings more than what it cost them to own it).  From that day, I devoted a lot of time, effort, and energy to internalizing how to invest in real estate.  Flash forward to today:  I am not only continually learning on a daily basis, but i am also executing daily while paving my own path to spreading real estate insight and offering reliable real estate representation.

 

HOW TO INDULGE IN PHILLY REAL ESTATE:  Click "Watch my Videos"

www.urbnhmesphilly.com

Realty Times

From buying and selling advice for consumers to money-making tips for Agents, our content, updated daily, has made Realty Times® a must-read, and see, for anyone involved in Real Estate.

Joomla! Debug Console

Session

Profile Information

Memory Usage

Database Queries