Goals for Investing

Published on 08/23/04
By Lewis J. Corcoran - Realtor-Associate - Weichert, Realtors

Goals for Investing

As a real estate investor, you need to set goals--measurable objectives to assess your financial progress when buying properties. You'll want to analyze monthly and annual financial statements to make sure you are making the right decisions.
Most real estate investors own their own home and may have bought a rental home or small complex, apartment building or a building that houses their business.

According to the Bureau of Census report for multi-family properties:

* 58% of multi-family properties made a profit or broke even
* 27% experienced a loss
* 16% didn't know whether they made or lost money.

To set income goals for your investment properties, you'll need tax advice from an experienced certified professional accountant (CPA) who understands real estate investments. With your CPA's help, you can map out a strategy that fits your income and risk tolerance.

Be sure to check with your insurance provider, since many insurers have increasingly restrictive coverage. And make sure you can truly afford this type of investment, since investing in real estate is not without risks.

Please feel free to email or call if you'd like additional information on investing in real estate, whether it's a primary residence, vacation home or rental property.

Owner's Tip:

Most savvy investors work with a team: their CPA, a real estate attorney and their real estate investment counselor.

Owner's Tip:

Consider asking your attorney to help you set up a Limited Liability Company (LLC) to protect yourself from potential litigation.