- Joined
- Aug 30, 2007
- Messages
- 13,881
As we had into a difficult 2009 with a recesson, what are some margins of safety to live by ?
I come up with:
1) don`t overpay
2) sell when prices have gone up "irrationally high" .. like into 2007 ..
3) make prudent assumptions about rent levels, costs, vacancies, values, interest rates
4) buy only in growing economies / cities / areas (a key REIN philosophy)
5) buy with enough cash-flow (or price to rent ratio aka 8-10% rule) so you can hold during bumps like 2008 / 2009 ...
6) seek advice / help
7) hire a decent property manager even if it costs you $100/month or 5% of rent collected !
8) have the right partners: marriage, investors, business teams (realtors, lawyers, mortgage brokers, educators, property managers, ...)
9) have a prudent cash reserve
10) have low expenses that are in line with business goals
Your thoughts ?
I come up with:
1) don`t overpay
2) sell when prices have gone up "irrationally high" .. like into 2007 ..
3) make prudent assumptions about rent levels, costs, vacancies, values, interest rates
4) buy only in growing economies / cities / areas (a key REIN philosophy)
5) buy with enough cash-flow (or price to rent ratio aka 8-10% rule) so you can hold during bumps like 2008 / 2009 ...
6) seek advice / help
7) hire a decent property manager even if it costs you $100/month or 5% of rent collected !
8) have the right partners: marriage, investors, business teams (realtors, lawyers, mortgage brokers, educators, property managers, ...)
9) have a prudent cash reserve
10) have low expenses that are in line with business goals
Your thoughts ?