It's Labor Day Weekend and most folks are off taking it easy. That is unless you're in real estate. Then you end up like me, working the phones and meeting prospects and writing some ideas down in my blog to share with whomever.
It this case, I have a prospect discussing properties with me. She wants to buy something in the central peninsula area that she'll rent for a few years and perhaps move into after that. Everything she likes is in the $750,000 - $975,000 area and many of those need some fair amount of fix up investment before she'll be comfortable renting them out.
Recognizing that break-even cash flow is basically impossible in this market, I asked her what she was trying to accomplish with such a purchase. She wasn't really sure. She knew she wanted to make money, with little to no effort as a result of her investment. Good plan. Most investors don't even get to the point that they should be making money.
Now I sell houses for a living, but it's hard for me to do that if it doesn't meet the needs of my client because I have this ethical quirk whirling around inside me. That doesn't mean I can't help her. I did my best to probe what her needs were and got her to explain that she's concerned about her retirement well-being. Now that I told her, is an entirely different situation, but one that is managable.
Tomorrow - How to manage your retirement without going broke.
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