Today we’re looking at your real estate investing action plan.
Bob Nelson, Eugene real estate investment broker
Marcia Edwards, Eugene residential real estate broker
Marcia Edwards: We’ve been talking about building your estate, that is building your net worth, and in doing so we’ve talked about the possibility of partnerships and relationships that may benefit you both to go toward a real estate investment. Let’s talk about the action plan, the actual plan. It’s got to be broken down from broad terms and long range planning down to tasks that you should do each year or those that you should start with. Where would you start? You talked about counsel with the client first meeting and understanding the rate at which they need to appreciate their funds to get where they want to go, what’s next?
Bob Nelson: Exactly. And once I’ve identified how much they have to grow in order to hit the target that they have defined, I’m going to take a look at how much they have to work with that would allow them to get started or to continue on from where they are to where they need to be.
Marcia Edwards: And you talked about the possibility of even looking at your personal residence given circumstance like how much equity they have, if there’s still a margin there and the security of their position and things like that.
Bob Nelson: Well, that’s a great place to start. You already own the thing and all you’re going to do is move out and allow somebody else to move in and pay rent and so forth. But whatever equity you have in the property, it’s value minus the amount that you owe against that as your equity, whatever that equity in fact is, is the amount that you’re using as the equivalency of a down payment into that property holding it for investment purposes from that point forward.
Marcia Edwards: So in looking in that as one way through the front door, other alternatives are to partner with someone that has the assets but not the energy so to speak?
Bob Nelson: Sure, you bet. Let’s just assume that you have inherited some money as an example, a lump sum and you’re not quite sure what to do with it. So you may look to another individual who has that expertise in the type of property that you would like to invest in, and if they would form a mutual agreement on who has what duties, what obligations, who’s going to provide what money into the transaction, who’s going to be involved in the debt and so forth, and then go forth with vigor.
Once you’ve got the partnership, and I use the term loosely, but we’re generally not invested as partners, but as members in a limited liability company.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.