So you want to invest in Real Estate

So you want to be a Real Estate Investor….
Standing in the aisle of my favorite bookstore, I was overwhelmed by all of the titles that promise “Real Estate Riches Overnight”, ”Make Millions with NO Money Down”, “Even a Total Idiot Can Get Rich in Real Estate”. OK, I’m thinking we need to define rich and probably define idiot too. Can it really be that easy? Are idiots becoming millionaires overnight? What am I missing?

If you’ve lived in the Valley of the Sun for the past 12 months you have probably noticed the change in the Real Estate market. Insane, Crazy, Extreme. Wild stories of builders raising prices in new subdivisions over $50,000 during the first six months. Your neighbor down the street making a $100,000 profit on a home she has owned less then three years. You can’t help but wonder if it is ever going to end and how can you get your piece of the pie.

First, invest in you. If you do not already own your own home, start there. It makes no sense to rent an apartment while buying properties for other people to live in and lease from you. Your home is the most important purchase the average person will make in their lifetime.

Once you have taken care of your living situation, it is now time to start making decisions about the type of real estate investor you wish to be. Do you want to own single-family homes, condominiums, or even multi-unit properties? How do you feel about raw land? Commercial buildings? What about a parking structure or a business opportunity? You see, the world of real estate is filled with many choices. Most of those choices will be dictated by your current situation. How much time you have to devote to your properties and how much money you have to spend.

Answering the above questions will probably not be easy. You need to form a team of people to help you with your decisions. I strongly urge all of my clients to consult a good accountant and/or tax attorney before making any real estate purchases. Accounting has never been my strong suit and while I can execute a 1031 tax-deferred exchange, I am not qualified to give advice on the tax benefit. That is when we call in the CPA’s.

The rest of your team should consist of a mortgage broker, home inspector, insurance agent, real estate appraiser, escrow officer, and the most important piece of this puzzle a licensed Realtor. I say your Realtor is your most important piece because not only will they help you identify and locate investment properties, but they are the member of your team who helps you coordinate the other members while maintaining contact with the seller and protecting your best interests all at the same time.

Seriously - What do you think of Bubbles?

Maybe I should have kept my mouth shut.

While drinking my morning coffee, I foolishly asked my husband what information he was given by the military when he had to change bases. Had I known what I was getting myself into, I would have just done some research online.

The reason I asked was I have noticed lately a surge in home searching coming from bases in other states. This made me wonder what, if anything, the military did for a service member who was relocating. I know it has been many years since my husband was active duty but I assumed any information was better than nothing. Somehow asking this caused us to get into a housing bubble discussion.

"The Bubble". When I hear about the bubble I automatically picture "The Blob" or maybe "Attack of the Killer Tomatoes". There is such an ominous tone that come with "The Bubble".

My Husband has a much different view of "The Bubble" then I do. This caused me to think of some recent conversations with clients many of whom are concerned about 'The Bubble" but not positive what they need to be concerned about.

So I've decided to ask you.......What does "The Bubble" mean to you and how concerned are you?