Successful real estate investors recognize that there is more to the process than simply buying and selling properties. There are many variables involved and questions to ask about each one.
Remember - Timing is Everything!
Real Estate Cycles
- Are property values apt to go up or down?
- How long will this phase of the cycle last?
- Where in the cycle are you comfortable investing?
- Based upon where we are in today's cycle - what should you be doing?
- What is the intrinsic value of your property?
- What can you do to add value to your property?
- How do you measure the results of making improvements?
Location & Site Selection
- What are the advantages/disadvantages of your property location?
- What other areas might be considered as "comparable"?
- How do you select the places where you want to look for properties?
Gross Rent Multipliers
- Why use GRM rather than cap rate?
- What causes the GRM to rise or fall?
- Do you know the GRM for your market?
Rate of Return
- How do you measure your rate of return?
- How do you evaluate the anticipated rate of return on other properties?
- How accurate are your projections regarding an anticipated rate of return?
- When should you consider refinancing?
- How do you get the best rates when refinancing?
- What terms should you be thinking about?
- What do you think is going to happen with 1031 Tax Deferred Exchange laws?
- What are the prospects for changes in depreciation and cost basis rules?
- Are you up-to-date on tax law proposals locally and within the State of California?
- How might these and other changes affect your Real Estate Plan?