Proper Financial Planning

By Author: zackawiest
Total Articles: 6
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Success as a buy and hold investor comes as a result of many accurately taken planned steps. Proper analysis is for certain of those but in addition is proper financial planning. During the financial analysis stage it is important to account for vacancy and repairs/maintenance. Moreover, it is imperative that these funds are placed in a reserve account. For example, if your analysis called for 5% vacancy monthly and 5% maintenance monthly, these funds need to be placed in a reserve account monthly.

One of our team members calls these "buckets". On a monthly basis place these funds in these buckets. If proper screening and management is performed, a tenant may remain in the property for multiple years so your vacancy "bucket" should be growing for when a vacancy arises. Additionally, if no repairs are required because the property was properly rehabbed for a long term buy and hold investment including; good or new roof, furnace, plumbing, electrical, windows, etc... this repair "bucket" will grow and when a large repair does arise many years down the road, the money is available for use.

Poor planning ...
... will lead to the need to tap your personal checking account to pay for a vacancy or repair. There is no need for this to occur if you are properly planning your investment. This is just one of many tips we offer our clients that make succeeding as a long term buy and hold investor not a "I hope this works out" but a "This will work out" scenario. Plan, organize, and manage your way to success.

At PA Deals we offer fully renovated, top-notch, cash flowing properties plus all of the support you need to become a successful long-term buy and hold investor. Do not fall victim to a get rich quick scheme, get wealthy for life with PA Deals. Visit www.padeals.com to learn more now about this unbelievable opportunity!

Zack Wiest is owner of PA Deals, LLC. They are a residential real estate investment firm located in Harrisburg, PA. Though founded in 2006, the principals of the company have been investing in real estate since the year 2000. You can find out more about us at http://budurl.com/padealsbmpart