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The Shakiba Report: Can real estate be a good investment?

What you need to know before investing in real estate

HOUSTON – If you're looking for a way to build wealth, real estate investing may have crossed your mind, but is it worth it? 

Private Wealth Advisor with Ameriprise Financial, Trevor Shakiba, along with president of The Kordish Group, Steve Kordish share their take on the subject. 

Here's their list of dos and don’ts to consider.

THE SHAKIBA REPORT


IS REAL ESTATE A GOOD INVESTMENT?

  • The short answer is yes
  • However, it does involve risks like any other investment
  • There is no risk-free investment
  • It's not as easy as the reality shows make it seem


THE MOST IMPORTANT THING TO UNDERSTAND IS YOUR MARKET NEEDS

  • Houston's population is currently at 7 million and projected to be approximately 10 million by the year 2040
  • Average home price in Houston's inner loop is $500K
  • The need is affordable housing to buy or reasonable rental properties


RENTAL PROPERTIES ARE GREAT, EXCEPT WHEN THEY AREN'T

  • Run the numbers and consider starting with the 1% rule
  • Vacancy is the biggest negative with rentals
  • Try to find responsible, long-term tenants


CREATING AFFORDABLE HOMES

  • Developing Underserved Areas Inside The Inner Loop
  • Purchase land at the right price and build an affordable product
  • Minimum returns of approximately 15% if the numbers are done correctly up front


DON'T OVERLEVERAGE

  • Biggest mistake real estate investors make which has devastating consequences
  • Think worst case scenario
  • Add 10% - 12% on cost for flips and 3 - 6 months vacancy for rentals
     

For more information or to request a complimentary consultation with The Shakiba Group, click here or call 281-724-9917.

The initial consultation provides an overview of financial planning concepts. You will not receive written analysis and/or recommendations. 

Sponsored by The Shakiba Group