Right now we’re going to ask, what’s your real estate endgame? Thanks for tuning to the Real Estate Today podcast.
I’m Bob Nelson, real estate investment broker with Pacwest Real Estate Investments. And I’m Marcia Edwards, residential broker with Windermere Real Estate.
Marcia Edwards: We’ve talked about the benefits and features of a property. Often we start driving the features like what we need logistically without understanding our endgame. So creating a true vision, a clear vision of what you want this property to do for you during your ownership is relevant and something to talk about before you go out shopping.
Bob Nelson: Well, and that’s what a good broker, a great residential broker, such as Marcia does. Analyzes what you need and what you want. Now there’s a difference between those two. A broker that really understands that critical difference and then understands your purchasing capacity can reach in and find exactly the properties that come as close as possible in the market.
Marcia Edwards: Let me give you an example. A lot of people when they’re going from rental to ownership, they’re first time purchase, they’re thinking about, finally I get a place of my own. This is what I want. What I’d like to help you work toward is keeping your resale in mind. That is to say, what’s your longer term endgame? This should be a good investment for either resale or future rental to hold onto and go get your next property and that will be your long term hold.
So understanding how long you want to hold the first property’s important and recognizing you want it to be very marketable when you do sell.
Bob Nelson: Always anticipate how am I going to get out before I get in? That’s a critical issue for me is I evaluate income producing properties. If it’s a situation where you say, “Gee, I don’t know who in the heck would want this thing other than me.” Well, you’re the terminal buyer. Hopefully you enjoy it and you have huge benefits because there will not necessarily be a wild, crazy group trying to take it away from you when you make it available to be purchased.
Marcia Edwards: Now you can recognize that and make sure it’s recognized in the price and the offering and discount accordingly. Those homes on the busier streets of Eugene definitely still sell but they sell at a discount that’s appropriate on their location on a busier street versus a quiet location. So when you go to resell, you could offer that same discount but enjoy the appreciation of the market in between.
Bob Nelson: That makes a whole bunch of sense. From an income property standpoint, to the idea that we say, “Okay, how much cashflow and how much equity growth are we needing in order to make something happen?” Once we’ve identified that, we also get into kind of some subgroup benefits. Do you want to manage it yourself? Do you want to have a hand in managing? Or, do you want to be totally hands off? And there’s opportunities such as that. It’s just they’re special, we need to understand it and go after specifically that type of property.
Marcia Edwards: I’m Marcia Edwards, Windermere Real Estate.
Bob Nelson: And I’m Bob Nelson, real estate investment broker with PacWest Real Estate Investments.
Join Bob Nelson and Marcia Edwards Eugene, Oregon, real estate experts daily at 5:30 on KPNW for the “Real Estate Today ” radio show.