Real Estate Investing Goals 2008
It’s January, that time of goal setting and review of the previous year’s goals. Like last year, I’m going to write my goals down publicly in hopes of actually accomplishing some.
Reviewing last year is a good place to start. I wrote:
Organize my personal paperwork to make a clean loan file and qualify for a full/lite doc loan.
A year later, this is something I still need to do.
If I choose an investment (non-owner occupied) property, I need to have a down payment of 10%. So I need to insure I have the appropriate savings to close such a loan.
I accomplished this, but unexpected emergencies depleted most of these funds. Put it on the list again for this year.
I need to actively search for suitable properties here in Salt Lake as well as possible duplex or 4-plex properties in Louisville or Northern Kentucky.
Kentucky is off my list of potential out of state ventures. I’m looking much closer to home now. Given the higher demands for rent, income producing properties are a very good idea for 2008.
I also need to make sure I have appropriate funds to fix up any property I buy. To purchase a property and not be able to fix/sell/rent within reasonable time frames will increase holding costs significantly.
See the second item. Rebuilding my reserves is something I’m actively pursuing.
I need to keep my eye out for “subject to” financing deals from short sales that may present themselves.
This remains a goal.
2007 wasn’t a very good year for me goal wise, nor in real estate. 2008 doesn’t look to be a good year either. The one thing I can do from an investment perspective is pay off debt and build my savings. This is an excellent strategy for any potential investors or home buyers sitting on the sidelines. Real estate is headed down, stocks are shaky and bonds are riding a roller coaster. Every time the Fed lowers rates to help borrowers, it punishes savers. I believe paying down debt is the best investment strategy right now.
What if you have no debt? That’s a great first step! How many months of savings do you have for an emergency fund? If it’s less than 12 months, work on that.
What if your emergency fund is in place and you have no debt? Start your down payment fund if you’re looking to purchase a house. With tightened lending standards, except for FHA, it’s a good idea to have at least 10% down saved. You can more easily qualify and get a better rate with 20% down.
If you have all these goals met, congratulations!
My goals for 2008
1. Get my paperwork together, filed and organized.
2. Pay off all outstanding debts.
3. Save money for an emergency fund.
4. Save money for my down payment fund.
Hopefully, I’ll do better this year. Good luck to you and I wish you all a prosperous New Year.