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Why You Need to Have Financial Goals When Investing in Real Estate

Savvy investing in real estate requires setting goals. That is because the destination has to be known before the road to get there becomes clear. First, it will force the investor to know their current financial status. It will also shape decisions about how long to hold onto a property, and will keep the investor from making emotional decisions that leads them to an over-extension of debt. Without those goals, the investors will just wander around making purchases without objective facts to guide them.
Know the Big Picture
One of the best benefits of setting goals for investing in real estate is that it forces the investor to do a complete analysis of their current financial status. There is just no way to know how long it will take you to reach a goal, or how much initially to invest, if the starting point is not known. This involves tracking …

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Homes For Sale Near Me

Key Financial Factors For a Residential Real Estate Investment

Investors are often easily wowed by the financial characteristics of a prospective investment. However, shiny exciting numbers are fraught with risk. Instead, investors should focus on a few basic characteristics to select and make investments in the real estate markets.

Before we jump into what to look at, a discussion of what to avoid deserves attention. Investment plans that rely on the unproven even for a specific project should be avoided by smaller investors. To be clear, I am not saying that all such plans are bad investments. In fact, many are superior investments. However, for smaller investors (though possibly quite sophisticated, this requires resources and a tolerance for potential loss that many aren’t armed to support. So, to continue, avoid the following:

Investments that are not based on a long standing established revenue and expense profile.

Investments that project new revenue based on changes that are not in place …