Real estate as an investment may well be your key to financial security. However, one formula for success in today's world is to surround yourself with "experts."
The real estate investment field abounds with experts: lawyers, accountants, brokers, appraisers and the list goes on. While experts in there respective calling, they are likely to have little knowledge in the areas of in-depth analysis and financial structuring.. Real estate decisions involve large amounts of money and many risks. The decisions are often agonizing, so it's tempting to let someone else do the digging for information and to rely not only on their knowledge but their judgement to make decisions for us. The logical course is neither total reliance on the experts nor on total independence from them.
How many times have you heard the expression, "Taxes? My accountant handles all of that." An accountant or tax advisor would have greater knowledge of an investors overall tax status than anyone else, and should certainly review all investment real estate proposals. However, while the tax advisor is a necessary part of the investment team, they should not be expected to have the required knowledge in related real estate fields to evaluate, negotiate, and structure the investment.
How about the expression "Investments? My attorney handles all of my investments." An attorney is also a vital part of an investor's investment advisory team and should review all real estate investment proposals. Again however, they may not have the real estate expertise to capitalize on alternative structuring opportunities. Let's agree that an investment real estate decision should never be finalized without a review by the investors tax and legal advisors.
Then there's the expression, "He ought to know, he owns one." That person's advice is likely to be the worst possible advice. They might be taking a beating with their real estate investment and not even be aware of it.
Well then, where and with whom does the planning strategy begin? As previously stated, it could be a costly mistake to rely totally on the knowledge and judgement of any one advisor. Many times so called "expert" recommendations are the result of out-of-date rule of thumb assumptions, leaving much to be desired in the way of expertise. As for judgement, it should be the investors judgement that influences the final decision. However in order to exercise good judgement an investor must be well informed. Often the investor, (enamored with the professional status of the advisor) is hesitant to ask for in-depth explanations.
Don't tell me what to do...show me how and why, in the form of a written "Investment Value Analysis." Your primary goal should be to seek out a specialist that will teach you to understand the reasons for your investment decisions. . .one highly skilled in the areas of investment analysis, tax planning and financial structuring. A certified specialist who will work with you as well as for you.
A CCIM is an individual who, by education, experience and knowledge of the investment real estate marketplace, is a certified specialist and is considered the Ph. D in the field of commercial investment real estate. A CCIM is a member of a unique cadre of superbly skilled real estate specialists in the areas of investment analysis, tax planning and financial structuring. Such a specialist is a main link in the chain when assembling an investment advisory team and serves as an effective link between an investor's tax and legal counsel.
Take control of your potential for accumulating wealth. Learn to make sound, well informed decisions regarding your real estate investments. Plan your real estate investment strategies with an advisor that allows you to exercise your good judgement by teaching you how and why. Seek the counsel of a CCIM.