Today on the Thrive For[e]ward podcast I couldn’t be more excited to welcome Carrie Guarrero as we talk about what to consider before investing in real estate. Many of my clients ask me for advice on investing in real estate for the purpose of diversifying their portfolio. There is NO easy answer and NO one size fits all.
You may know people that have made money through real estate investments. We need to remember that today, the market is different from a mortgage perspective, but as an investor the mentality is the same.
Carrie shared three main points when investing in real estate for the purpose of generating additional income.
Go in with the right mindset, it’s a long-term strategy.
Consider cash flow. (You need to pay attention to the balance sheet, what will it cost to maintain, what are estimated repair costs. It’s not just mortgage payment and insurance fees.)
Have money reserves in the bank for emergency situations
Many get caught up in the “get rich quick” thought process but this isn’t the reality.
Although there are plenty of ways to make money in real estate, rental properties qualify as the best example of ‘real estate investing’. Wholesaling properties and flipping houses can give you a lot of income but they demand too much, they’re almost like a regular job. (Source: The Smart Investor: A Beginner’s Guide to Real Estate Investing)
I think one of the most important things Carrie said during our episode and one I could not agree with more is … “Just because we can approve someone doesn’t mean they can do it. Cash aside, you need to be a property manager when owning investment property. You need to be in that mindset.”
I would said to my clients that you absolutely can have real estate as part of your portfolio without it being hard assets. There are opportunities if you don’t want to be the role of a property manager.
But it’s key to do a thoughtful consultation with some who is real estate. You want to be asked the hard questions from someone. Connect with someone to ensure you are making sustainable choices for your life.
We could have talked about this topic all day and there are many layers to uncover as you learn more about the options.
70+ Resources to Learn Real Estate Investing — And Do It Right
Resolution is a theme throughout Carrie Guarrero’s decades in real estate-related industries. Carrie’s experience from helping thousands of families finance their homes and as a dedicated and inspiring business coach have given her high-definition insight into what’s possible for people in many different situations.
The goals and long-term plans of clients and partners are at the forefront of Carrie’s efforts every day. Her tenacity earned her the honor of being named one of twelve Dakota County Exceptional Business Women in 2012. Through her trademark resolve, Carrie started young in the industry and is now an EVP, Producing Branch Manager for Fairway Independent Mortgage and Leader Coach with Fairway Ignite.
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If you are interested in learning more about Forethought Planning and how we can help you on your journey, please schedule an appointment to our complimentary 30 min Wealth Assessment session to learn more about how we incorporate these strategies and others to assist you through the financial planning process.
Investments in real estate may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Other risks can include, but are not limited to, declines in the value of real estate, potential illiquidity, risks related to general and economic conditions, stage of development, and defaults by borrower.
Securities offered through LPL Financial, a member of FINRA/SIPC. Advisory services offered through Advisors’ Pride, a SEC registered investment advisor. LPL Financial, Advisors’ Pride, Forethought Planning and the guests of Thrive For[e]ward podcast are separate and unaffiliated parties. Any of the parties listed above are not affiliated with Forethought Planning, Advisor’s Pride, or LPL Financial. The views expressed here are those of the participants, and not those of Forethought Planning, Advisor’s Pride, or LPL financial. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. LPL Financial and Forethought Planning do not offer legal services. Socially Responsible Investing (SRI) / Environmental Social Governance (ESG) investing has certain risks based on the fact that the criteria excludes securities of certain issuers for non-financial reasons and, therefore, investors may forgo some market opportunities and the universe of investments available will be smaller.