Investing in Greater Austin
Selasa, 05 Oktober 2010
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In my day to day life as a Realtor I typically see two types of Real Estate investors. The first type is the person who knows what they want, knows how they are going to finance their investment, knows something about home constructions and repairs, knows what their short term, mid term and long term strategies are for holding a given property. And most importantly--they know how they plan to exit from their Real Estate investment. They have an Exit Strategy. Sounds like a business plan--right? Well, that is exactly what it is.
The second type of investor that I see is one that is best described as a person who "is thinking about doing some Real Estate investments, and is considering the Austin Area." I actually hear this about once a week, and sometimes this is the person is a person who knows what they want and how to get it, and many times this is a person who is doing some initial exploration.
If you are exploring whether or not you want to start investing in Real Estate, let me give you the good points and the challenges of Real Estate investments--from my perspective as a Realtor and an Investor.
1. Real Estate investment requires an Active Involvement in the investment. If you generally prefer to be passively involved in your investments, buying Real Estate as an investment strategy is probably not for you. Even when you have a Realtor, Property Manager, Contractors, Banker, Attorney, etc., this is still not a passive investment opportunity. Just keeping up with this list of suppliers alone takes time.
2. Real Estate investment requires a financial strategy. You need to have a plan for when, where, how and how long. You need a plan for when your plan does not work--a back up plan. You need a strategy with contingencies to fall back on.
3. Real Estate can be fun and profitable, but if you don't enjoy #1 and #2, you may find that Real Estate investment was a loss of time, effort and money for you. Many people get into real estate before they realize that there is no such thing as passive real estate investor (unless you are buying Real Estate stock--and even then, you should know what you are doing and have market view of real estate).
I do work with a limited number of serious real estate investors each year. However, I don't work with every person who is considering investments. I know that sounds a little haughty, but the truth is, I have found that the majority of the people who have not considered what is involved in Real Estate investments, really really don't want to do the work required to manage such an active investment and they turn away after we have spent many hours together (before they realize that this is a lot of work). The returns can be good, but the work is definitely more than an annual call to the stock broker and a monthly report on portfolio performance. Real Estate requires more hands-on management, even when you are only managing the team that is managing the property. It is just not a passive investment vehicle.
The second type of investor that I see is one that is best described as a person who "is thinking about doing some Real Estate investments, and is considering the Austin Area." I actually hear this about once a week, and sometimes this is the person is a person who knows what they want and how to get it, and many times this is a person who is doing some initial exploration.
If you are exploring whether or not you want to start investing in Real Estate, let me give you the good points and the challenges of Real Estate investments--from my perspective as a Realtor and an Investor.
1. Real Estate investment requires an Active Involvement in the investment. If you generally prefer to be passively involved in your investments, buying Real Estate as an investment strategy is probably not for you. Even when you have a Realtor, Property Manager, Contractors, Banker, Attorney, etc., this is still not a passive investment opportunity. Just keeping up with this list of suppliers alone takes time.
2. Real Estate investment requires a financial strategy. You need to have a plan for when, where, how and how long. You need a plan for when your plan does not work--a back up plan. You need a strategy with contingencies to fall back on.
3. Real Estate can be fun and profitable, but if you don't enjoy #1 and #2, you may find that Real Estate investment was a loss of time, effort and money for you. Many people get into real estate before they realize that there is no such thing as passive real estate investor (unless you are buying Real Estate stock--and even then, you should know what you are doing and have market view of real estate).
I do work with a limited number of serious real estate investors each year. However, I don't work with every person who is considering investments. I know that sounds a little haughty, but the truth is, I have found that the majority of the people who have not considered what is involved in Real Estate investments, really really don't want to do the work required to manage such an active investment and they turn away after we have spent many hours together (before they realize that this is a lot of work). The returns can be good, but the work is definitely more than an annual call to the stock broker and a monthly report on portfolio performance. Real Estate requires more hands-on management, even when you are only managing the team that is managing the property. It is just not a passive investment vehicle.
I am an Austin investor, and I am very bullish on the Greater Austin investment market. If you feel as though you are a serious investor who is considering investing in the Greater Austin area, I would be happy to speak with you about your investment goals and plan.
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