If you expect real estate should involve ROI, then there’s some basics to the outline.
- Acquisitions – some we have control, others not – e.g.: inheritance.
- Holding – short/ long/ entity/ self held/ purchase for child/ etc
- Approach: add value/ flip/ wholesale/ rent/ vacation/ family lease to/ residence with business inside
Most properties will be held for cash income OR appreciation. If you can get both, then neither will probably be optimal.
Regardless, upfront considerations must include:
- What you need from the property: income now or later (cash flow vs appreciation)
- I look at these like ‘a job’ or
- ‘retirement investment’
- I will invest more:
- cash or
- time & talent
So there will be many vehicles and considerations. SD IRAs, set up LLC, Corporation, etc. One of my favorite realizations is that PROFIT is usually made on the way into an investment in THE BUY. Further when you SELL, what can you/will you do with the funds ? Make sure you have another opportunity lined up if you liquidate a great rental. Make sense ?
‘Later’ is not the preferred time to plan.
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