Whether you are an individual, and/ or family, considering purchasing a house, for your personal needs, etc, or looking, to invest in real estate, either as an owner, partner, etc, it's important, to ensure, you have your, so - called, financial, ducks - in - a row! This means, the process must begin, with fully considering, as many, relevant fiscal/ financial issues, concerns, ramifications, etc, as possible and foreseeable, in order to make this, the best possible, least stressful, most financially astute decision, possible. With that in mind, this article will attempt to consider, review, and discuss, some of the items to review, and consider, at the onset, of the process. 1. Home, of one's own: Since, for nearly everyone, our family home, represents, our single, biggest, financial asset, doesn't it make sense, to proceed, wisely? What are some of the most relevant considerations? Many, merely, consider, the down - payment, but that is only the most obvious one! Other significant considerations should include: a) Reserves for repairs and maintenance; b) Reserves for renovations; c) Reserves for contingencies/ emergencies; d) Approximately 9 months reserve, in case of loss of employment; e) Knowing monthly payment is affordable, for you, and will not make you house - rich, but otherwise, overly stressed, etc. Take a close look at your monthly income, and create a responsible, realistic budget, which guides you towards wise handling of your personal finances. 2. Multi - family house - investment: Wise investing in a multi - family house, for investment purposes, can be a smart move, but unless, one does so, based on logic, and smart investment approaches, can become stressful, and angst - producing. Use the 6% - rule, which means, you must seek, at least that rate of return on your investment, net (not merely gross). To do so, reduce your projected revenues by your forecasted expenditures, including real estate taxes, utilities, escrow, insurance, and other costs. Always, realistically forecast reserves for repairs, renovations, etc. What sense does it make to invest in a multi - family, house, and assume the risks and responsibilities, unless it will make financial sense? Do this, up - front, so you do not over - pay! Forecast projected rents, conservatively, and expenses, from a worst - case scenario! Assume vacancies, and thus, only assume rents for 10, of the 12 months, in your projections, and assumptions. 3. Investing in an REIT: Real Estate Investment Trusts (REIT), are publicly traded, investment vehicles, where others manage, usually a larger project, and you are solely, an investor. Carefully examine, and review, the financials of these, to clearly realize, whether they are smart, for you! Proceed wisely, not emotionally! The previous 3 items, are just, a few of the ways, individuals invest in real estate. Whatever your personal circumstances, proceed wisely and carefully, and be, as certain as possible, it's right, for you! Richard has owned businesses, been a COO, CEO, Director of Development, consultant, professionally run events, consulted to thousands, conducted personal development seminars, for 4 decades, and a RE Licensed Salesperson for a decade+. Rich has written three books and thousands of articles. Website: http://PortWashingtonLongIslandHouses.com and LIKE the Facebook page for real estate: http://facebook.com/PortWashRE Article Source: https://EzineArticles.com/expert/Richard_Brody/492539 Article Source: http://EzineArticles.com/10005830
