Category Archives: Planning

Worried about too Less Savings Retirement? | Quest IRA, Inc.

For many adults who are nearing their 60’s (and even some adults much younger than that), one of their biggest financial concerns is being able to save enough for retirement. The average American who reaches age 65 can expect to live for about another 20 years, so if that individual plans to stop working once they retire, they will need to have accumulated a significant nest egg to cover their ongoing living expenses. Many adults find that they haven’t save enough.

So what happens if you find yourself in this position? What do you do if you believe that you’ve saved too little for your retirement?

Click below to read Quest IRA’s response:

via Worried about too Less Savings Retirement? | Quest IRA, Inc..

Investment Real Estate Perspective | Assessing and Mitigating Risks



“Perhaps the best strategy for dealing with distressed properties is to forestall them by watching for early warning signals. The difficulties of most problem properties usually can be traced to one of the following factors: poor management, operating deficits, lack of capital improvements, or owners who need greater liquidity. Sometimes the problems are physical–deterioration of interiors and exteriors, problem tenants, neighborhood deterioration, functional obsolescence, adverse changes to frontage, increased traffic congestion, or worsened access in and out of the property…Fixing these problems before they become major obstacles can save everyone a lot of grief. It helps the equity investor because he or she may be able to avoid foreclosure. Working hard to turn around a property may also allow the equity investor to borrow again another day” (Shilling, 2002, p. 190 – 191).

Assessing Risk is an Important Part of Conducting Due Diligence

We are having a very interesting class discussion regarding assessing and mitigating the risks that surround real estate investing. A very important point was made that an assessment of risk should be conducted as part of the due diligence process. As cited above, the best way to avoid becoming a distressed statistic is to take preemptive and preventative measures; for example, establishing quality management, ensuring that cash flow is sufficient to cover expenses and yield a positive return, establishing and maintaining reserves for capital improvements and maintaining greater liquidity, etc. These are all things that are within an investors’ control; however, there are some factors that go beyond the control of an investor; for example functional obsolescence and neighborhood deterioration. These uncontrollable factors will have a direct and significant impact on the quality of tenants, and thus quality of the investment; which in turn raises the risk of the cash flows and risk of the investment in the long-term.

The Greater the Risk, The Greater the Expectation of a Return

For the average real estate investor, these conditions are best uncovered during the due diligence period and avoided. However, for an experienced investor with vision, resources, local knowledge, and community backing, there could be a tremendous opportunity to re-develop deteriorating communities; to be sure, it is a specialty not for the faint of heart. In the case of deteriorating neighborhoods, these investors are buying up whole blocks of homes for pennies on the dollar, eradicating the neighborhood of criminal element, demolishing old vacant homes, and then re-developing / re-building clean affordable homes and rentals. When the market recovers, their hard work will have paid off handsomely, because they properly assessed the risks, created a preemptive plan of action, and followed through with all things considered. Since they assume a greater level of risk, they can expect to earn greater returns, and rightly so.  These investors are angels–in my opinion–because they are the ones that revitalize and renew ailing neighborhoods; they encompass what it means to be “green” in the quest for sustainability and the triple bottom line of, “people, planet, and profit.”  These Angels have my undying respect and admiration for the good that they do for people in their pursuit of profit; they are social entrepreneurs to the core. Spectacular! – Control Debt – How Your Credit Score Impacts Your Financial Future

Getting Ready to Invest – How Your Credit Score Impacts Your Financial Future

Many people do not know about the credit scoring system—much less their credit score—until they attempt to buy a home, take out a loan to start a business or make a major purchase. A credit score is usually a three-digit number that lenders use to help them decide whether you get a mortgage, a credit card or some other line of credit, and the interest rate you are charged for this credit. The score is a picture of you as a credit risk to the lender at the time of your application. Note: each individual has his or her own credit score. If you’re married, both you and your spouse will have an individual score, and if you are co-signers on a loan, both scores will be scrutinized. The riskier you appear to the lender, the less likely you will be to get credit or, if you are approved, the more that credit will cost you. In other words, you will pay more to borrow money.

via – Control Debt – How Your Credit Score Impacts Your Financial Future.

How to plan your real estate empire–one step at a time.

Real estate is a business, and like all other businesses, it requires planning and preparation to become successful. Part of that process is defining your idea of success, and how you will know when you have achieved it. This is only a part of the planning you must do to achieve effective results in your real estate investment business.

This class will discuss three key areas of planning a real estate portfolio:

1. Creating the framework of your plan, which includes an assessment of your financial goals

2. Personality assessment, lifestyle assessment, risk tolerance, selection of property type(s)

3. Building a good support team to help you succeed in your journey to financial independence via real estate.

The journey to sustainable wealth is not easy, but it is a road well-worth the effort it takes to plan and implement an effective real estate business from the ground up.