Taking The Steps Toward The Creation Of A Purposeful Plan

Posted @ 1:10 am - Filed under Real Estate Investing, Purposeful Planning, Retirement, Cash Flow, Sominex Account, Capital Growth

A potential real estate investor is becoming serious about get started. What’s the first thing to do? I have this conversation many times weekly. Most of the time something crops up needing attention before anything can move forward. There’s a long list of reasons why. The common thread running through most of the reasons is they’re no-brainers. Not enough capital, less than stellar credit, too much debt, and the list goes on.

The steps you might consider taking are what we at Brown and Brown do with new clients. The following is a sorta Reader’s Digest version for you to follow. I hope it helps.

One last note.

We go through this process whether the new client has never invested or owns millions in real estate. The fundamentals still need to be observed. Or, as I’ve taught many, they need to be honored. Shortcutting the basics at the beginning is no doubt the quickest way to self-generated problems later.

1) Be honest with yourself — what’s your level of sophistication?

2) Figure out your complete and again, honest, financial status. An experienced lender (experienced in investor lending) can help with this, as you’ll need lender pre-approval anyway.

3) Where is your investment capital? Find it.

4) Create a profile of yourself.

5) Do you need capital growth or current cash flow?

In all my experience, I’ve run into three beginning investors who actually needed current cash flow.

6) How much time is available ’till retirement?

7) Decide what amount your Sominex Account (cash reserves) should be.

8) This is one most folks can’t do. Explain the process — execute steps 1-7.

It’s understanding the process that stops most folks in their tracks. This is where we come in. Duh.

If you’re even flirting with the idea of becoming a real estate investor, go through these steps. Don’t rush through them though, as that’s how you can create future train wrecks. Worst case is you’ll know a bunch more about where you are and what you can accomplish.

When you’re finished — get in touch with us and we’ll take it from there. Really — no problem. We have an office with phones and everything.

This entry was posted on Thursday, January 10th, 2008 at 1:10 am and is filed under Real Estate Investing, Purposeful Planning, Retirement, Cash Flow, Sominex Account, Capital Growth. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.