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“Time is the most valuable thing a man can spend.” — Theophrastus

I get a lot of questions from apartment investors, and one that comes up often is, “How can I be successful in apartment investing while balancing time with my family?”

This is a great question and one that every successful investor has had to tackle at one point in their lives. It also shows how many ambitious individuals truly do want balance in their lives between money and family. I applaud this desire, and want you to know that you can achieve this balance.

A story for you.

I remember the first time I said to myself, “There has got to be a better way!”

It was about 14 years ago and I was talking to a guy about a lease with an option to buy on his apartment property. I really wanted to lease the entire building with an option to buy badly.

He agreed to meet with me and talk seriously about doing this. The only time (he said) he could meet was 11:30 pm on a Friday night. I agreed.

Well, when Friday night came my relatives were over from out of town for the weekend and were getting ready for bed. Here I go off into the night telling them I was working on a real estate deal…

“At 11:30 at night?” they replied. I said, “YEP.”

They all look at me strange and go to bed. Then I got to thinking. This is a little goofy.

But, out the door I went determined to get a deal here.

So, I drive the 30 minutes to this place that turned out to be a BAR. Well, the BAR was packed and there was cover charge to get in! I decide to go in since I knew what the guy looked like. So much for the coffee shop.

I go into the smoky haze and the loud music and decide to walk around a couple of times and if I did not spot him I was leaving.

Sure enough on my first go around I see him sitting at a table with four other guys. I go over and introduce myself and the guy was drunk. He remembered who I was and why I was there but he was drunk nonetheless and came prepared for nothing.

I left mad, upset and feeling like an idiot running around past midnight to meet a guy in a bar to get a real estate deal done. Does any of this even smell a bit stupid??

What I Learned and What You Can Too…

I was running from one great possible deal to the next to the next with no plan, agenda or anything, just running. Once I sat down made a plan and included in the plan was how much time I was going to spend with my family kids, etc. AND how much I was going to devote to real estate, my whole life changed. Things happened easier, more predictably and no more late nights at the bar looking for a great deal.

Three keys here:

1. Make out your business plan, regardless of whether you are just getting started investing in apartments, or have been doing so for a number of years.

2. Include the things that are important to YOU in your business plan.

3. Schedule the amount of time you want to focus on your apartment investing, as well as with your family and other personal activities.

Once you have taken the time to do this and focus on it, you will find that meeting your goals and having a life will be that much easier.

Why did you decide to get into Real Estate in the first place? Most likely, it was to have the flexibility of parenting while maintaining a steady job. The Real Estate Market seems to be fluctuating constantly, and with the market dipping a bit, it seems like we have to jump on every lead and cancel family plans in lieu of keeping your business afloat. Remember, your business might fluctuate, but your family will always be there. They should be your top priority.

As a Real Estate Mom, you are determined and perseverant in your business goals and strategies. Sometimes motherhood goes to the backburner, so how do you prevent this? Proper business planning and time management will ensure that your family is getting just as much time as your business is.

Plan your Real Estate Business ahead of time so that the Real Estate market fluctuations don’t affect your life and income negatively. By budgeting well, and planning out the times of the year that you know might be drier than others, you won’t be floundering when dry times with few leads hits. This will make it easier for your family life to be stable since your income and savings will be stable.

Managing your time will help you make sure that you’re giving your family just as much time as your Real Estate Business. Trust me, I know how difficult it can be to get caught up in business and forget about the time and care that my family needs. Make sure that the time you spend on your Real Estate Business is filled with effective and constructive activities to build your business. Then, have your family help by holding you accountable for your time management. They can help by staying on top of you to stop working and have family time, or by reminding you about certain school or family events.

Don’t forget that the main reason you got into Real Estate in the first place is so that you would have a business that is flexible with your family and your children. Your family can’t be expected to be flexible with your business. They will always be there for you, but don’t take advantage of that by forgetting that your dedication to them just as important as your dedication to your business.

For some more inspiration on how you can keep your business success in balance with your family life, read “Off-ramps and On-ramps: Keeping Talented Women on the Road to Success” By Sylvia Ann Hewlett. With talent shortages looming over the next decade, what can companies do to attract and retain the large number of professional women who are forced off the career highway? By documenting the successful efforts of a group of cutting-edge global companies to retain talented women and reintegrate them if they’ve already left, Off-Ramps and On-Ramps answers this critical question.

Historically Durham Region has been known as a hub for the automotive industry in Ontario with its vast General Motors plant. A number of years back almost everyone living in the area was in one way or another employed by GM.

GM is still one of the largest employers in the Durham region but it isn’t the only draw for this thriving community.

Durham has increased it’s population in the last ten years exponentially. This influx of people has caused a boom in the Durham real estate industry as houses are being built, bought and resold at a rapid rate.

What is the draw to this community?

Cost of living:

Regardless of household income, there will be a home that suits your budget in Durham. An affordable market coupled with an expanding population ensures that homes will appreciate and provide an agreeable return on investment. Bigger lots, spacious homes, better amenities and safer communities are the benefits of buying in Durham when compared to buying a home of the same monetary value in Toronto.

Transportation:

Highway maintenance and easy access to GO transit systems makes it easy to live the commuting lifestyle.

Varied Landscape and Community:

Major lakeshore urban communities contrast with a variety of small towns, villages, hamlets and farms in Durham Region. Waterfront areas boast beautiful, natural elements like the bluffs and wooded creeks.

Farms and prime recreational lakelands make up the northern region of Durham with the popular Kawarthas being a draw for tourism during the summer.

Small Town Community, City Luxury:

Shopping:

Major shopping centers with the latest in retail trends and grocery superstores provide residents with everything they need.

Health and Wellness:

Cancer patients living in the Durham region no longer have to travel to the city with the brand new, state of the art cancer treatment center in Oshawa. Hopsitals and walk-in clinics are scattered throughout the region ensuring that Durham residents are well taken care of in a timely manner.

Recreational Activities:

Catering to families and individuals of all lifestyles, Durham’s recreational facilities have something for everybody.

Community Vision:

As with any great endeavor a community needs a great vision. Residents of Durham have clarity for their future as their government has clarity in their vision for Durham.

“Durham will be a united group of vibrant and diverse communities recognized for their leadership, community spirit, and exceptional quality of life.”

It is clear to see why Durham real estate is doing so well. With so many great benefits to living in this diverse community you would be hard pressed to find a reason to avoid living here.

The hottest area in Arizona is the Phoenix metropolitan area. If you are looking to invest in real estate, this is prime property. While every area of this beautiful state is inviting, this particular area is where much of the

action is. Whether you are just looking to invest in land, or want to buy a home for your family, Phoenix is an

area you should make one of your top considerations.

When you are looking for the perfect home and location for your family, there are a lot of things to think about. Of course, you want the lowest price possible for the real estate you are considering, and an experienced Arizona realtor can help you locate homes that suit your style and size preferences at prices that are in your price range.

Many people have to relocate because of their jobs. If this is the case, your agent can discuss the areas that

have schools with good reputations for education and safety. Of course, you want to evaluate your lifestyle and the activities of your family to choose an area that is the best choice for your family.

Those who are simply looking to invest in Phoenix real estate usually have more time to consider their options than a family searching for a home. A reputable Arizona real estate agent can show you where to get the best deals for your investment, and keep an eye out for properties that become available. It is much simpler to let a realtor handle the negotiations when you are in the market to buy a home or land, and they can barter on the prices for you as well.

For one person, they may find the price of a piece of property a bargain, while another may not. Why is this? If the schools, shopping, available activities and general safety of the neighborhood is attractive to one person, this may be their motivation to buy. These may not be the reasons another person is searching for a home, so the price may not look as attractive to them. An experienced realtor with thorough knowledge of the Phoenix area will be able to help you locate properties that suit not only the style of home you want, but the other factors that are important to you as well.

No matter what the reason for your move, obtaining the services of a reputable Arizona realtor is essential to getting the most for your investment. Don’t try to handle this yourself – it can be very frustrating, time

consuming and stressful. Let the experts handle the details for you!

When investing in real estate if you plan to invest in single family homes there are some things you should know. One thing you should know if you plan to invest in single family homes is what some of the problems of the area are. If you buy a house in an area that is prone to floods, you can be sued by the people you rent the house out to. If this happens you can end up losing the house and in debt. Also if you plan on selling the house and not renting it out, there is a chance that the house can flood before you get to sell it.

Another thing you should know if you plan to invest in single family homes is how the neighborhood in which the house is located in is. If new houses are being built that’s a good sign that homes in the neighborhood are likely to go up in value. One other thing when it comes to the neighborhood is the shape of the other houses. If the other houses in the neighborhood are in bad shape it could mean that the values of the houses in the neighborhood are going down. If you buy a house in a neighborhood where all the properties are going down in value it will be hard to resell. A house in a neighborhood like this may also be more difficult to rent out.

One last thing you should know if you plan to invest in single family homes is what kind of houses are difficult to resell and rent out. Houses with two or less bedrooms are hard to resell and rent out. It is recommended that you stay away from single family homes with two bedrooms or less. Investing in single family homes can be profitable and if you use the information you read here you will know what things to look for.

The housing boom saw American homes grow up to 2,500 square feet in average size. The subsequent collapse has seen new homes downsize drastically and that is just the beginning. I believe the global economic effect on long term commodity demand, the U.S. condition of high debt, large government entitlements, and over construction of large homes in many U.S. markets is going to have some surprising effects on the new housing and existing housing market.

To begin to understand, we have to first consider the broad economic trends that will impact housing value and demand. The trends that seem important are:

The echo boom is leaving home and will continue leaving home for the about 9 years. Relatively, boomers are aging but will remain active players. This will generate huge downward pressure on household size. For the next 7 years household size may fall another.1 to.2 to 2.4 or 2.5 per household on this basis.
At the same time, the slow job market recovery the U.S. faces will slow the formation of approximately 30,000,000 households by 5 to 7 years. This pressure is more immediate and implies household formation for the next 5 years is an anemic perhaps 600,000 to 800,000 per year with 55% to 60% proving to be rental homes.
Continued pressure on total energy costs for everything from travel to heating and cooling your home adds increased pressure for fewer square feet per household member.
The growing trend of empty nest baby boomers in oversized homes creates a swell of rooms for rent and suites for rents in existing housing placing significant substitution pressure on the industry and dampening new construction demand.
The federal government will begin facing the issue of managing the deficit resulting in higher taxes in two specific ways. First, the home interest write-off will be stripped from new 2nd home loans and perhaps lowered on first homes significantly effectively tax wealthier consumers. Additionally, the social security cap will be increased from $106,800 to a significantly greater number again taxing wealthier consumers. The net effect will cause increased renting of spare housing in these demographics and housing downsizing.
72% of new households will be minority creating even greater rental pressure.
The country will grow by approximately 25 to 35 million over the next two decades increasing pressure for more housing.
The rising developing countries will push up commodity prices increasing new housing market cost and thus existing inventory value especially if the efficiency of that inventory is increased.
High interest rates will undermine buying power and growth in the short run and increase values in the long run for residential real estate in general.

Determining the exact impacts of these macro effects are difficult to change. However, I believe the following opportunities will emerge:

Investors will achieve greater value converting existing space into higher density housing from the multifamily and single family inventory.
Inventory nearest entertainment, employment, and shopping offering the most efficient lifestyle will offer substantially greater value.
New construction risk will increase substantially especially 7+ years out as the echo boomer exit from their parents homes begins to wane. Rates will make new construction more difficult in the out years as well.
Equity heavy plans will offer the greatest security and best long term value proposition for investors.

Continuing to refine these opposing and reinforcing pressures is a major key to unlock investor value, avoid investor risk, and develop a post recession investment strategy.

After seeing the stock market and real estate market decline so significantly in the past year, many investors are wondering whether now is a better time to buy stocks or invest in real estate and which would be a better investment.

Consider the following facts about a recent rental house purchase which was purchased a few weeks ago. The house in question was purchased in Port St Lucie, Florida and was a bank owned REO property which was purchased directly from the bank.

Purchase Price $47,500
Monthly Rental $800
Annual Rental Income $9,600
Less Annual Insurance $1,045
Less Property Taxes $1,300
Less Vacancies $800
Less Repairs $800
Net Annual Income (NOI) $5,655
Cash on Cash Return $11.9%

If we assume that the property is vacant 1 month out of every twelve and that we spend another 1 months rent on repairs, we would still net a very healthy 11.9% return. Where else can you get almost 12% on your money with very little risk? This house previously sold for almost $200,000 and buying it at less than ¼ of that price has obviously significantly reduced the downside risk.

The current market value of this property is around $77,000. So while this investment yields a current yield of 11.9% I have the added luxury of knowing that there is around $30,000 worth of equity in this property. And considering that most rental property in Florida sells at around 140 times rent, the fair market value for this property is probably somewhere around $112,000. That is how much I would sell this property for if I were to sell it to a rent to own buyer with an FHA mortgage.

Zillow estimates the value of the property at $124,000. The insurance company has the property estimated at $125 per square foot replacement cost. Since the property is 1,176 square feet that puts the valuation at $147,000. I think the property is worth around $77,000. The fact that properties are selling at such a discount to replacement cost should be a huge red flag. That is the builders way of letting you know that you should be buying real estate now. The real replacement cost is around $75 per square foot which would put the properties value at $88,200 which is probably fairly accurate. However this is the value if the house was constructed new and without the land. The lot is worth $25,000 so the house built new would cost around $113,200 to build. Existing homes need to be depreciated since obviously they are worth less than new homes so the $77,000 to $88,000 is probably a healthy range for what the house is really worth.

If we are conservative and assume $77,000 that is still a definite $30,000 in equity. At a purchase price of $47,000 that represents 63.82% return on my money when I purchase ($30,000/$47,000). In addition to this $30,000 in instant equity I also receive almost 12% annually as mentioned previously. And this is all without utilizing any leverage whatsoever.

Imagine what the return would be if I borrowed 90% of the purchase price ($42,750) at 7% on a 30 year fixed mortgage. My monthly payment would then be $281.09 for both principal and interest which adds up to a total of $3,373.08 for the year. If I deduct this $3,373.08 from the $5,655 net operating income above then I would be left with a net annual income of $2,281.92. Consider that if you put down 10% ($4,750) that would work out to be a “cash on cash” return of 48%. Where else can you get this kind of return?

There is no other investment that can do this with any certainty.

Investing this same $47,000 into stocks would be an absurd way to invest your retirement money. I should know. I spent fifteen years as a stockbroker and money manager before becoming a distressed real estate investor. And I am here to tell you what many other real estate investors and landlords like me already know. The best place to invest is in single family rental properties. That is what I do with my money and I highly recommend that you do the same with yours.

Unless your name ends in Buffet or Soros you are much better off investing in rental properties than you are investing in the stock market. Investing is about getting as much cash flow or yield as possible, without risking your nest egg and doing so in the most secure way.

Anything else is not investing. It is speculating. And speculating is anyone’s guess. If you are looking for a sure thing then you should go out and find a single family rental house that is way below current market value and you should rent it out. If you want to speculate then you should go to Vegas.

Copyright © 2008 Lex Levinrad

There are many ways to get started in real estate investing. For the beginner, a good strategy might be to purchase a multi family unit to rent out. Four families or less per building is the ideal size to look for. This will allow you to still acquire a building with a residential mortgage, taking advantage of the lower interest rates. Here are some great reasons why investing in a multi family building can be less risky than other types of housing.

First is competition. There are going to be more investors going after those single family houses. This can drive the price of those houses up to a point where they will not cash flow for you. Do not depend on appreciation to create cash flow. You need your properties to be cash flow positive right out of the gate. If you are considering being a landlord, you might as well purchase a unit that has more than one tenant option.

Then there is the fact that you have more than one unit to rent out. If you purchase a single family house and the tenant skips town, you have to cover the entire mortgage payment until you get it re-rented. With a multi family, it would be highly unlikely that all of your units would be unoccupied all at once, giving you a bit of a cushion. If you have a four unit building, having one tenant gone may not even put you in negative cash flow! This could make all the difference in the world for your yearly profit.

Multi family units bring you more money per month. Depending on your market, duplex or triplex properties can be around the same price as a single family house. However, you can get more rent from 2 units than a single unit. So, you will be getting more money per month for approximately the same mortgage payment. Which means more positive cash flow – the most important aspect of real estate investing!

Repair costs per unit average out to be less. If you have 3 single family homes and need to replace the roof on each one, that is a lot of money per unit. However, if you have a triplex that needs a new roof, you are in effect replacing 3 roofs in one, making the cost per unit decrease. Same thing goes for maintenance, it’s less travel time to go from unit to unit, maximizing labor costs.

As you grow your real estate portfolio, the increased cash flow given to you from your multi family units will allow you to be able to afford a property management company if you want. This will free up your time to find other deals, or do whatever you want!

So, don’t get stuck in the mindset that real estate investing only involves single family homes. Smart investors will have a portfolio that includes a mix of single and multi family properties. Just work the numbers and you may find multi family investing to be profitable for you!

Investing for the family is different from investing for an individual even though the premise is similar. It should take place on a sound financial foundation that includes a number of protection and accumulation products. Even though investing refers to accumulation products in the strictest sense, a family would necessarily have to invest in financial protection. Household income would have to be used to provide for the unemployed within the family. Therefore, investing in the context of the household may need to be less aggressive according to your financial aggressive and focused on providing for those within the family who cannot yet provide for themselves.

HEALTH COVERAGE

It is best to seek financial protection as a group. Some insurers offer health plans that can cover the entire family. The cost of these plans is often lower than the aggregate cost of taking out a health plan for each family member. In one instance, the cost of health coverage for a family was only fifty percent greater than the premium for an individual.

FAMILY PROTECTION THROUGH LIFE INSURANCE

Income earners within the household should invest in life insurance. Primary earners should have five times their annual income in coverage, at worst. Whether or not the income earners are the parents is immaterial. The important thing is that the major contributors to household income should have their income protected so that the other members of the household can survive without them. This ensures that the family can survive better financially while dealing with the emotional distress that arises from losing a household member.

EMERGENCY FUNDS

Creating an adequate emergency fund is also important when investing in financial security. This would prevent a collapse into a lower standard of living due to the temporary or permanent unemployment of a primary income earner. The emergency fund could be placed or developed in a money market fund to achieve the best balance between accumulation of the fund and availability.

DEBT SERVICING

The accumulated household debt should not exceed 40% of household income. If this ratio is exceeded it may be difficult for investment in savings and capital growth funds. Major purchases should be discussed in light of the family’s financial goals and current needs versus current wants.

FINANCIAL GOALS AND OBJECTIVES

An important investing tip would be to set common financial goals for the family. These may include retirement, business objectives, helping members of the household start their own family or covering future education costs. Covering education for kids should not be a priority unless the primary income earners have their financial plan up to date and adequate. Smart investing is a lot easier when the goals of investing are located in an appropriate context.

Major financial goals should be divided into short, medium and long term goals. Short term goals can be met with savings accounts and money market funds. The latter can also be used for medium term goals along with treasury bills and certain high-interest fixed deposit plans. Long term goals can be financed by higher risk income and growth funds for example. For the more conservative family, long-term fixed rate investments are available

Retirement is a major family issue. The best advice for primary income earners in a household would be to maximise contributions to an employer’s pension plan. Family members who are close to retirement but may be unable to work have to be provided for. It is important not to invest too much where retirement is concerned just for the purpose of the tax-break. The tax break on registered retirement plans is merely an incentive to save for retirement, not an end in itself. However, it is important that retirement provisions do not amount to less than ten percent of household income.

Consistency, financial discipline and considerate financial decisions are pillars of family investing. It calls for a lot more sacrifice, as one may have to sacrifice for another to benefit. It is best to secure the family’s estate and assets and then protect individual members through health coverage. After that one can invest any residual household income in one of several accumulation products. Even if a family can only cover the emergency fund and relevant insurance plans, that would be the best investment that household could make.

* On average women earn about 74 cents to a man?s dollar.

* Women pay $1.00 or $2.00 more than men to have a white, cotton shirt dry cleaned.

* In general, women are charged higher prices for used cars than men.

Knowing how to play the budgeting game is key to winning it! Neither age nor budgeting experience matter, what does matter is that you keep learning how to get the most for your money.

As women we need to be smart spenders, learned investors, and successful at saving. The fact is 85 out of every 100 U.S. women, 32 and older, will find themselves on their own financially at some point.

* 6 of the 85 will never get married.

* 33 out of the 85 will see divorce.

* 46 will outlive their mates.

We must know more about keeping and controlling our money. Taking the time to learn more now, may mean having more money later.

Start by taking a good hard look at your current spending habits and work to establish a balanced budget. Good money management is spending what you have wisely.

Putting a budget together doesn?t have to be a dreaded thing. You make the rules because it?s your money! If you want a new wardrobe, budget for it. Want to take a vacation? Simply budget for it. You can have the things you want so long as you budget for them. Remember budgeting is simply a systematic way to control what you spend, save money, and get yourself out of debt!

Here is a simple budget to get you going. It is set up to budget monthly expenses as a percentage of what your gross monthly income is.

My Budget:

________% IRA/401K/403B/SEP
________% Federal Taxes
________% Taxes (Other)
0-10% Insurance
25% Home
5-10% Additional Savings
5% or more Groceries (5% per person per month)
5% Clothing
10% Utilities
10% Transportation
0-5% Entertainment
0-5% Household goods, appliances, repairs
0-5% Miscellaneous
_______% Liquid Emergency Fund

Remember, this is just a guideline. Work with your family and budget, make any adjustments you need to. If you find your figures exceed the above guidelines by more than 10%, that could possibly mean you are spending too much. Customize your budget to fit your needs.

IRA/401K/403B/SEP:
Contribute to some sort of retirement plan. Money in the plan will not be taxed while it earns dividends, interest, or capital gains. If you join via your employer, money is deducted from your paycheck before you can spend it! Some employers match a percentage of what you put into your plan. Yes, you can withdraw early if needed, there will be a financial penalty applied and you will have to pay tax on your withdrawal.

Insurance:
Life, disability, medical, dental. Insurance is designed to protect you against loss of life, income or health. Don?t use insurance for your investment needs because most likely you will end up paying far too much for the insurance. Keep them separate (insurance and investments) to get the best return.

Savings:
Be sure to pay YOURSELF first! Save as much as you can. 5-10% is the guideline. Save what you can save. Have a disciplined routine in place. Save at least 6 months worth of living expense. Some recommend putting this into an interest bearing checking, savings, or money-market account.

That is fine if that is what you want to do. It is MY opinion that we should also stockpile a liquid emergency fund. Something we can put our hands on right away without having to wait for any banking system to issue it to us. It can be kept hidden in our homes, I suggest investing in a lockbox (fire/waterproof box), or a small safe. Stockpile whatever money you can.

Ways to stockpile money:

* Round off your budget items to the next highest dollar amount and stockpile the change.

* Pick a certain bill to stockpile weekly (example: stockpile a $10.00 bill every week)

* Set aside a dollar a day

* If a bill or category in your budgeted expenses is less than what you have anticipated for in any particular month, stockpile the balance.

Whatever you do just DO IT and if you aren?t already then start this week. Don?t dip into it! It is for the utmost emergency situation ONLY! Be committed to putting it aside each and every week no matter what.

Home:
Include mortgage, rent, property taxes, and homeowners insurance here.

Transportation:
Car payments, gasoline, auto insurance, repairs, maintenance, license fees, parking fees, mass transportation costs are all included in this category.

Groceries:
This will vary depending on the number of people in your family. Figure about 5% per each adult monthly. To see exactly how Read more…