How to become a successful investor - defined goals and staying focused may be the secrets

 

FIRST-TIMEINVESTORS

Part 1 of 3

Three-part series focusing on the simple strategies for the first-time investor.      

NEXT SUNDAY: Criteria of a good investment property

 

HONOLULU ADVERTISER Feburary 12, 2006

BY LISA SCONTRAS

Custom Publishing Group

 

Whether it’s flipping a fixer-upper, finding a foreclosure or buying and renting apartment buildings, the mere possibility of making as much money on one house deal as in a whole year at the job has wannabe investors’ mouths watering.

 

The fact is that investors who practice sound risk-management techniques have indeed had some “too-good-to-be-true” paydays recently. Of course if it was easy, everyone would be doing it. So what separates the actual real estate tycoons from those who are just wishful?

 

Real estate agent Patti Takayama of Prudential Locations says it’s not unreasonable to be successful with the right coaching and a clear idea of what you want to accomplish. “Some want to accumulate rental properties that will bring them income in their retirement,” says Takayama. “Others want to build enough equity to buy their dream home. We taylor their plan to meet their needs and just keep doing what’s necessary until we achieve the ultimate goal.”

 

It’s important to keep that ultimate goal in mind, says Takayama and remain focused.

 

“I know how to pick properties that appreciate,” she says. “I have many happy clients. But initially, the properties I show you may not look as beautiful as you think they should.”

 

Takayama explains, “Remember, this is a property that you’re going to make a profit on — so it’s OK that the carpet needs to be replaced or the walls need painting.”

 

The climate remains positive for real estate investors, she maintains.

 

“The economy is still strong, you can still find reasonably-priced properties, demand is high and interest rates are stable,” says Takayama, who adds the biggest obstacle for folks is fear.

 

“Am I getting in over my head? Am I doing this at the right time? are normal questions budding investors ask themselves and why they need someone to walk them through each step,” Takayama recommends.

 

Lynn Sato purchased her third investment property under the guidance of Takayama seven months ago.

 

“I sold one,” says Sato. “I used that money to buy the other two. I want to continue to keep doing that — buy, sell, buy, sell — and use the money to keep accumulating more property.”

 

Sato, who at 29 describes herself as an atypical investor, says it was getting past the lack of knowledge initially that was the most difficult for her.

 

“I’d done stocks, bonds, CD’s, etc, but had never invested in real estate,” she remembers. “I don’t think people would expect me to be so serious about my goals and future. But I take this stuff really seriously.”

 

Part of that education process involves financing and Marie Imanaka, president at Wells Fargo Home Mortgage of Hawaii, LLC, advises, “With all the new loan programs it is easier than ever to qualify for a mortgage,” she says.

 

Imanaka says smaller down payment requirements, even using home equity to come up with cash requirements, give investors creative ways to finance an investment property.

 

“Typically, the down-payment requirement is 20 percent, but we can originate an investor loan with as little as 10 percent down.”

 

According to Imanaka, Wells Fargo will even typically consider 75 percent of the fair market rent when qualifying. She recommends as a first step for someone considering the purchase of an investment property: get prequalified. And go from there.

 

INVESTOR OWNERSHIP OAHU

 

 

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