Real Estate Strategy - The Time To Plan Is Now!

Unless you've been living in a cave on a deserted island, you've seen the news and commentary about falling home prices. There is no doubt that the housing market has suffered over the last few years, and may continue to suffer for some time. It has been a rude awakening for most of us to see that housing prices can fluctuate like any other item that can be bought and sold. While most of the media attention of late has focused on the downside of the market, many experts are quietly pointing out that the market will turn. Some believe we may be getting close to that point. Whether discussing income to housing expense ratios, rental income versus mort­gage expenses, or other measures, we will hit a point where the housing market returns to a healthier state. If you have ever thought about real estate investing, or are considering some type of future real estate transac­tion, a down market is a great time to plan. One of the biggest mistakes people can make regarding real estate is to fall in love with a property, for themselves or for an investment, and then find a strategy to go with the home. We have a tendency to look at real estate as a transaction rather than viewing it as an investment strat­egy. The wiser approach is more strategic and has little to do with the individual property. Sitting down and honestly evaluating your financial situation is paramount in the process of buying. For investors, the first step is deciding which type of strategy to execute, from renting to flipping to rehabbing. Developing budgets, exit strategies, and building your team should be next. House hunting starts after the plan is in place.

If you or anyone you know is interested in developing a strategy for real estate investing, or planning for a future change in resi­dence, please seek the advise of an expert mortgage planner to assist in putting a plan in place that maximizes the probability of financial success.

Paul Cantor is a mortgage planner in the Richmond Virginia area. He may be reached at (804) 433-1510 or at www.PaulCantor.com .