Step 1 - Planning
Without the knowledge and experience to create a plan, you'll be playing checkers amongst chess players. TriStone Group will share with you our expertise in this lucrative asset class so you can incorporate the do's while avoiding the don'ts. Whether you are considering 1, 2, or 50 homes to invest in, we can help you mark out the path and get you on your way towards winning the battle to freedom!
Thomas Jefferson has been quoted as saying, "I'm a great believer in luck. I find the harder I work, the more I have of it." We can all think we have good luck or bad luck, but in the end it all comes down to good/poor planning and good/poor execution. To that end, we each have different goals in mind. The first, and arguably most critical step to a successful investment decision, is to see the goal in mind before taking the first step.
Our single family home portfolio began at an auction. There was very little planning and a lot of guessing. All we knew was we might want an investment house, someday. We attended an auction with the expectation of watching the pros to see how this process worked. Pretending to be serious investors, we brought the required funds. As the auction progressed it became apparent that most of the attendees were just like us - unprepared, wanting to learn, sure enough that there was an opportunity in front of us all, but not sure how to take advantage of it. By the end of that auction in the hot summer heat, we hadn't bought an investment house. We had bought two!
We've learned over the years the value of being prepared and knowing your goal before throwing your hard earned investment into the battle ring. All told, those first two houses are still in our portfolio today. We got lucky, probably because we weren't afraid to work hard. TriStone Group has learned the lessons needed to help you avoid some of the pitfalls that rookie investors fall into. We've done the hard work, and now we can share our experience with you. We'll help you create and realize your goals. To get that process started, you'll need to answer a series of questions both honestly and realistically. There is no get-rich scheme when it comes to single family homes. This is a long game, but it's possibly more rewarding than you ever imagined. Some of the questions you should consider while formulating your goals:
- How much of an investment do you want to put in this asset class?
- How fast can those funds be made available?
- Who is your expert to help you find and evaluate a suitable property?
- Do you want to own the asset or just be a passive investor?
- What type of business structure will hold your investment houses?
- Who will help you establish that business structure?
- Who is your expert to help you make sure your purchases go smoothly?
- Who is your expert to make repairs up to current building codes?
- What type of insurance policy is needed and who can provide that?
- How do you intend on putting the house to work for you?
- Who will manage the property going forward?
- How much will all of this 'help' cost you?
- How involved do you plan on being in the daily activities of your house?
- How long are you planning on holding onto your new asset?
- What is an acceptable rate of return for you?
- What is your plan to handle unexpected emergencies with your house?
- How would you like to exit this investment class?
Whatever your game plan may be, all options need to be considered in order to gain the most benefit. TriStone Group will be there with you as you follow your path to success.