®Real Estate Investment Softwarewww.proapod.com
Real Estate Investing Planning, Goals, and Crucial Formulas
James R Kobzeff
I'm mostly opposed to get-rich-quick methods for real estate investment for a couple of reasons.They often assume that you self-manage the property while, at the same time, they ignore your costof time. Plus, they like to bloviate about "no money down" yet fail to warn you about the high risk associated with high leverage. Besides, it's difficult to trust someone claiming to have uncovered agoldmine yet anxious to peddle a map so it can be found. If they really discovered the road to realestate investment riches, why would they share it?Actually, there is no secret way to attain real estate investing success. In real life, you must work hard with good research and a commitment to a sound and systematic analysis. Pathways leadingfrom get-rich-quick seminars are littered with disappointment; the key is to take as much time asnecessary for you to prepare properly. Time is in the side of the prudent real estate investor.In this article, we want to help you better understand some of the nuances associated with realestate investing. We would like to discuss the importance of building a sound investment plan withmeaningful goals and then cover the formulas of four popular financial analysis models usedregularly in real estate investing.
Sound Investment Requires a Sound Plan
Having a plan with stated goals is one of the most important foundations of successful investing.However, it's not about lofty intentions like declaring, "I want to be worth a million dollars oneday." No, there is nothing wrong with desiring better things in life, the problem is that simplydeclaring something doesn't bring you any closer to achieving it. The idea is to develop a general plan with stated goals and a method on how to get there.
Goals Must be Meaningful
Goals are the shortcuts to your desired destinations. Goals are not essential to life, many people do just fine without any kind of goal at all, but goals are essential to successful real estate investing.For a goal to work for you, however, it must be attainable, measurable, tied to a timetable, andclearly defined.Moreover, divide long-range goals (say further out than one year) into intermediate goals, and your investment plan into subsections such as "cash flow requirements," "net worth projections," "tax
©2008 James R Kobzeff. All rights reserved.