• Are you looking for guidance about real estate as an investment strategy? Bobby Daniels provides information before taking this investment risk.

    Real Estate Considerations

    by Bobby Daniels, CFP®, CIMA® | April 8, 2024

    Duration: 5:20

    Show Notes: 

    Are you looking for guidance about real estate as an investment strategy? Financial Planner Bobby Daniels provides information on considerations before taking this investment risk. 

    1. Location. Location is one of the most crucial factors in real estate. A property’s location can significantly impact its value, potential for appreciation, and rental income.
    2. Market Trends and Economic Indicators. Do your research on market trends and economic indicators or work with an experienced real estate agent who focuses on real estate as a full-time job.
    3. Property Type. Residential? Commercial? Land? A mix of all three? Decide which set of risks and potential returns match your desired outcomes.
    4. Business Plan. Have a business plan for your real estate business to determine goals and strategies.
    5. Market Feasibility. Prepare an investment feasibility analysis to help you find the right property. One general rule of thumb is to not have more than 20% of your net worth in one asset class, like real estate.
    6. Legal documents or structures. If you do purchase an investment property, will you do so in your individual name or through an LLC? Consider collaborating with a team of realtors, attorneys, CPAs and insurance professionals to help avoid a potential disaster.
    7. Financing Your Investment. Connect with multiple banking institutions to explore different financing options. It may be a good idea to have two or three lenders available as some banks will have more favorable terms than others.
    8. Property Managers. Who will oversee property management? Will you want to manage property management in its totality, or will you hire some tasks out?
    9. Real Estate Diversification. A key strategy to deploy in real estate is diversification. Consider spreading your risk by investing in various types of properties. 
    If you are interested in learning more about real estate investment considerations, you should read the related blog article “Real Estate Investing: 9 Considerations for Success.” Visit our website at www.onlyworkforyou.com for more information on related financial topics.


    Bobby Daniels, CFP®, CIMA®

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