Monday, December 29, 2014

What Do You Do With A Property In Your Portfolio That You Paid Too Much For?


The chances are that you have a house or two in your portfolio that you paid too much for. I have analyzed several landlords property portfolios over the years that were going under to help them determine which ones are their winners and which are their losers. We did this so a game plan could be made to resolve the issue and get them back on their feet.

Most often I’ve found that they have both properties that cash flow and others that don’t. Obviously you can have some losers as long as you have enough winners to make up for the ones that are sucking the life out of the good ones. Or else you have to have a nice paycheck from another job so you can cover your losses.

This week we have special guest speaker Keith Boley with http://www.reiwealthacademy.com/  flying out from California to speak to our group. We had Keith last year and he gave a great presentation. The guy has a good head on his shoulders and has some fantastic ideas.

Keith is going to speak to us on what to do with these poorly preforming properties in your portfolio. How to dig yourself out of the hole you created. LOL.  Or to help someone you know now or in the future dig themselves out.

Every investor should know how much money each of their rental properties are making for them on average over the years. Otherwise you’re flying by the seat of your pants. You need to be able to identify your winners and losers. If you find one that fits in the loser category I’m sure it’s in a nice area and you’re rolling the dice for appreciation. Otherwise you need to get rid of it to strengthen your portfolio.

A good quick and dirty way to determine this is to do a cash flow analysis on each property to determine if it is a cash flowing rental.

Have a look here to see how to do one.
http://www.reiofvirginia.com/2010/04/cash-flow-analysis-for-landlords.html

Come on out this Tuesday for some real estate education and bring your friends!

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