Successful
real estate investors recognize that there is a lot
more to the process than simply buying and selling properties.
There are many variables involved and questions to ask about
each one.
Real
Estate Cycles
Are property values apt to
go down even further?
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?
Remember -- Timing is everything!
Value
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?
Cap
Rates
What causes cap rates to rise
or fall?
Do you know what is happening
to the cap rates?
What is the consequence of
a change in cap rates?
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?
Refinancing
When should you consider refinancing?
How do you get the best rates
when refinancing?
What terms should you be thinking
about?
Tax Laws
How might proposed changes
in the tax laws affect your Real Estate Plan?
What is apt to happen after
the elections in 2008?
Interest Rates
Are there any predictable trends?
What impact does a change in
interest rates have upon property values?
How does consumer spending
affect the economy, interest rates and the value
of your property?
How do you stay ahead of the
curve?
Have you quantified your “what
if’s” based upon a 1% or greater change in interest
rates?
Mortgages/Loans
Will the mortgage crisis affect the
value of your property?
What is happening in terms
of the availability of money for investment loans?
What types of risks are lenders
willing to assume and at what cost?
Is there a different loan program
that you should be considering?
Due Diligence
Do you know what lenders are
looking for to establish the Net Operating Income?
Have you done the necessary
due diligence to know the true facts?
Inflation
What are the ramifications
of a devaluation of the dollar?
How do you create a hedge against
devaluation and/or inflation?
What is going to sway the Fed
more — the fear of inflation or of recession/depression?
The Housing Market
What will be the effect, if
any, of a sub-prime bail-out on investment property values?
How does the single-family
residential market impact the rental market?
How well do you really know
your local housing market?
What role does Housing and
Home Building play in the general economy?
