Kimberly Dey: Top 3 Tips for Real Estate Investment
Kimberly Dey is the President of Renaissance Property Associates and an entrepreneur who likes taking risks but not without carefully drawing a financial roadmap that can keep her finances and assets secure. In this post, she shares her top three tips for investing in real estate.
If you’re a business owner looking to diversify your portfolio, Kimberly Dey suggests that you consider investing in real estate. Depending on your financial goals, your investment can give you a cash flow income for many years, or it can give you a considerable profit if you sell when the market is ripe and property values have increased. However, if you decide to earn from your investment, there are important things that you need to consider to minimize your exposure to risks.
Below are the top three things to remember before investing in real estate as shared by Kimberley Dey:
Do not invest under your own name
While you may want to have the title under your name, this can be quite a risky move as you expose your personal assets to various risks, foremost of which is losing your personal assets or having your personal finances negatively impacted should the value of your real estate investment go down. In the event of litigation, your personal assets could be tied to the property. Kimberly Dey suggests that you consult with a lawyer about the type of ownership that you can use for your real estate investment, i.e. limited liability company or limited partnership.
Regardless of the outcome of your property investment, your personal assets will remain intact.
Secure funding first before agreeing to purchase
To protect your business, you should work on how you will fund the investment. You should avoid using your business as collateral for the mortgage loan. Consider talking to other investors or partners who may be interested in investing with you. Whatever you decide on, make sure that your existing business is safe and secure.
Evaluate and analyze the type of investment you wish to make
Lastly, Kimberly Dey recommends that you discuss with your financial advisor the various types of real estate investment tools that are high on the market, and which one is best suited for your financial goal. The two most common types of real estate investments are residential and commercial, but there are other real estate investments that you can consider as well: industrial, retail, and mixed-use. Evaluate and analyze each one to help you decide which one best meets your financial goals and situation.