ReCasa Financial Blog

There are a number of ways to run a successful real estate investment business, but there are few tasks investors may procrastinate on completing. Below are 4 tips written by financial advisors to help r eal estate investors prepare for the future of their business by completing these frequent tasks. 

“The 4 ^th most frequent procrastination mistake we see for real estate investors includes interest rates.  We spoke to a new client just a couple weeks ago who was paying north of 6% on their mortgage loan .  With interest rates bouncing on the floor of historic lows this past several years, there is really no reason, what-so-ever, to have an excessively high mortgage rate .  Today, you can easily find rates in the mid-to-low 4’s, but be cautious of ‘Rate Vultures,’ who tease you with ultra-low rates just to get you in their door.  When it comes to mortgages, the numbers are pretty simple.  One company might charge $250 for closing costs, but their rate might be a tad higher than the lender who charges a higher closing cost, but carries a lower, long-term rate.  Bottom line, if your mortgage rate is too high, you’re paying too much money.

The 3 ^rd most frequent procrastination mistake we see revolves around property & casualty insurance.  I personally work with a home & auto insurance company that works with many different insurance vendors.  This means they can pick the lowest cost insurance for my house, life, rental property, personal articles, and office policies. 

The 2 ^nd most frequent procrastination mistake we see on a regular basis are people who need to update their estate planning documents all the time!   If you don’t have your basic estate planning documents updated and in-order, life (and death) can get miserable for you and/or your family.  The basic documents almost everyone needs are 1) A Will, 2) Healthcare Directive, and 3) Powers of Attorney documents.  The will tells your family where your money should go and who it should be handled by.  The healthcare directive is in place to tell your family and medical professionals how you want your healthcare matters handled in the case that you cannot respond.  The Powers of Attorney are used to ensure your financial affairs are handled efficiently if you become incapacitated and you’re unable to make decisions on your own.  If you’re one of the roughly-50% of people who actually have these documents updated and in-order, just make sure your powers of attorney docs have ‘financial language’ in them.  In this day and age of strict financial oversight, some financial institutions will not honor a general POA without this specific language. 

Finally, the 1 ^st most frequent procrastination mistake we see is all about your hard-earned money!  Make sure to put your money into various accounts including real estate investments , 401k’s, 403b’s, Deferred Comp plans, IRA’s, Roth IRA’s, TSA’s, Variable Annuities, Fixed Annuities, Individual/Joint accounts, Trust accounts, and/or other brokerage accounts. Doing so will allow you to earn interest on your hard-earned money.

It is absolutely crucial that you not only add these important items to your to-do list… but that you also push these tasks to the very top!   If you’re not sure who to trust with your financial affairs, interview 2-3 professionals until you get a good feeling of who to work with.  Once you’ve found someone you feel comfortable with, learn how to read your statements, view your accounts online, or check your account balances on your phone (whichever is easiest).  Then, don’t be afraid to ask questions! 

If you or someone you know has any questions regarding portfolio management, estate planning, or financial planning, please contact us and we’d be happy to confidentially discuss your/their personal situation further. 

Libertas Wealth Management Group, Inc.  614-543-1350  http://libertaswealth.com/

The opinions mentioned in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Past performance is not guarantee of future results. Economic forecasts set forth may not develop as predicted. The views and opinions expressed in this commentary are those of Adam Koos and do not necessarily represent the views of TD Ameritrade and its affiliates. Investing involves risk including loss of principal.”

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