When evaluating a rental property or real estate investments, look for multiple streams of income. A minimum of two income sources is recommended, which may include cash flow, equity in the buy, and/or forced appreciation. - Evie Brooks, Real Estate Educator and Investor
ATLANTA (PRWEB) October 05, 2020
Real Estate Educator, Investor, Former “Rich Dad Poor Dad” Elite Educator and My Panama Vacation Realty Founder Evie Brooks announces 8 Steps for Evaluating Real Estate Investments in 2020 to diversify and mitigate risk during uncertain times. With a stock market correction (Investor’s Business Daily) imminent, Brooks explains that real estate assets can offer cash flow, tax breaks, equity building, competitive risk-adjusted returns, multiple streams of income and a hedge against inflation.
To help potential investors evaluate domestic and global real estate and build long-term wealth, Brooks outlines eight steps:
1. Get Educated based on Your Desired Asset – Before investing in real estate, it’s very important to select a type of asset and set goals. And then learn everything about your preferred asset, which may include residential, rental properties (condos and houses), multi-family, sustainable agriculture and/or land.
2. Find the Right Mentor - Finding the right real estate investment mentor is a very personal decision. First, there must be a like-minded mentality for both the mentor and investor. For example, are both believers in good debt and bad debt, or does one want to invest "debt free" with cash only?
3. Look for Multiple Streams of Income – When evaluating a rental property or real estate investments, look for multiple streams of income. A minimum of two income sources is recommended, which may include cash flow, equity in the buy, and/or forced appreciation. If multiple streams of income are not possible, consider moving on to the next potential deal.
4. Evaluate Forced Appreciation Options – To increase the value of an investment property, there are three types of appreciation, which include: market appreciation, rent appreciation, and forced appreciation. Forced appreciation is when the investor increases the value of a property through a number of avenues. A pre-construction opportunity and/or purchasing a single-family home that can be converted into a duplex are just two options.
5. Evaluate Cash Flow Income Options – To evaluate cash flow in a property, consider potential income from short-term or long-term renters. Also, investors can increase cash flow by raising rents, charging pet rent, add an extra fee for parking and/or have higher rents for a niche market like medical housing or corporate housing.
6. Consider using OPM (Other People’s Money) – OPM can help scale investments faster. There are many options for using Other Peoples’ Money versus your own. For example, you can borrow money from a bank, find investors who will want a guaranteed return, and/or use developer financing, which is a more popular option for global investments.
7. Consider Investing your 401K or IRA - Knowing how to utilize IRA or 401k savings is important. For example, the money must move into a self-directed IRA first. There are many rules for these investments, which can be done without penalties with the proper advice.
8. Look for Multiple Exit Strategies - When investing in real estate, define multiple exit strategies upfront with a Plan A, B and C. If the intended exit strategy does not go as planned, fall back on the next strategy. For example, if the property is located near a major hospital in an international business location like the Pacifica Salud, a Johns Hopkins Medicine International affiliated hospital, in Panama City, Panama, create plans for this niche market.
Plan A may be where the investor purchases units to be used for medical tourism where there is already a plan in place with a hospital, medical professionals and the management company. Plan B could be investors rent their units to medical staff while building equity. And then if investors want a higher ROI, Plan C may be to rent corporate housing to nearby multinational companies for employees to increase cash flow.
And in all cases, investors who have financed their investment can typically sell it for a higher price, especially if involved in the pre-construction phase of the development.
Liz Kelly, 310-987-7207
Evie Brooks (Atlanta, GA and Veracruz, Panama) - With 24+ years of experience in domestic and global real estate educating and investing, Atlanta-based Evie Brooks is a former “Rich Dad Poor Dad” Elite Educator, Mentor, and Coach, who now specializes in “All Things Panama”, including real estate and organic, sustainable agriculture investments. Brooks has educated and guided thousands of investors through the process of locating, evaluating and analyzing transactions for cash flow and ROI (Return On Investment) in 13+ countries and 30+ states in the United States. Brooks is currently a sought after speaker and trusted source to lead real estate investment webinars, keynotes, and VIP Educational Tours in Panama. During the global pandemic, Brooks continues to close deals every week, primarily due to the soaring demand for organic smart farming investments (smart greenhouses and trees) in Panama, where 85% of the food is imported. As a disclaimer, Brooks and her employees and affiliates are not investment or tax advisors, and do not offer investment advice. Brooks’ work has been featured on Joe Fairless: Best Real Estate Investing Advice Ever, ESPN Cover Your Assets, Think Realty, The Real Estate Syndication Show, VoiceAmerica, Moving Abroad Podcast and more. To learn more, visit mypanamavacationrealty.com and https://eviebrookspanama.com/