Real Estate Investing

Here are some tips to avoid a possible financial disaster.

Real Estate Cycles-Is the constant. Those who get in on the upswing think it’s for ever. Depending where you invest, appreciation can level off or go negative. In the long run, real estate generally appreciates, but sometimes you need to hang in during the down times. For most of the country, the good times are over.

Patience is a must-When real estate takes a downturn, as we’re seeing in most areas of the country, the number of home sales decline while the time a home is in the market increases. What doesn’t happen right away is a decline in price. In fact, in certain markets (Coral Gables) prices continue to rise. There is a lag between the beginning of a downturn and when prices start to give way. The lag can be between 6-12 months, so hang in there, it will be a buyers market-it is a buyers market, once again.

Research- Take a close look at the competition. How is the rental market? Your tenants rent has to cover your mortgage, plus maintenance and additional costs.
Debt- Keep debt away, especially during a market downturn. A shift in the market can drown you. Sometimes, it’s just better to cut your losses.

Tenants- Hardly ever will take care of your property as if it was your own. Always have a contract with provisions to cover damages.

To this end, contact me at 786-287-9272 or richard@recuset.com for all of your real estate needs!