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Santa Cruz Sentinel S10 Sunday, MarCh 9, 2014 On the heels of a re- cession that saw home values drop, many would-be investors have shied away from buy- ing investment proper- ties. But real estate has historically remained a sound investment, boasting a long-term appreciation rate that makes it a worthwhile investment for those who can withstand tem- porary setbacks in hous- ing prices and hold on to their properties over the long haul. But inves- tors are of- ten nervous as they look for their first p r o p e rt i e s . Uncertainty about hous- ing prices aside, in- vesting in real estate also is risky, and first-time investors need to be comfortable with such risk in order to make the most of their in- vestments. The following are a few things poten- tial real estate investors should consider as they decide if investing in real estate is right for them. PERSONAL ABILITY Real estate investors typically have tenants, and those tenants in- evitably have needs. Investors who have ex- perience as contractors may not find it difficult to renovate a property and make it more attrac- tive to tenants, nor are they likely to be incon- venienced when minor issues on the property need to be addressed. Investors with no such experience will need to hire contractors to do the work for them, cut- ting into potential prof- its down the road. In addition, investors who don't have the ability and/or the time to ad- dress minor issues like a clogged drain or a drafty window on their own will need to hire a prop- erty management firm to tend to such needs. Such firms are effective, but also expensive, fur- ther cutting into your profits. Even those investors with contracting experi- ence may have little or no knowledge of how the leasing process works, forcing them to rely on areal estate firm to write up leases and ensure all leases stay current. This, too, can cut into an investor's p r o f i t s . Investors who don't bring any r e l e v a n t expertise to the ta- ble can still make a profit from their real estate investments, but those profits likely won't be as significant when outside companies must be hired to ensure the property is in good shape and all necessary documents are in order and up-to-date. TIME Real estate is often a time-consuming invest- ment. Tenants pay good money to live in attrac- tive rental properties, and those tenants will have a host of needs that must be met. Investors must be sure they have the time to address their tenants' concerns, es- pecially investors with no plans to hire proper- ty management firms. Potential investors who already have full plates at work and at home may not be able to de- vote the time necessary to make the most of their real estate invest- ments, and therefore might be better off find- ing another way to in- vest their money. Time also must be considered when con- sidering profits. Real estate is not the type of investment that turns a profit overnight. Even investors who are look- ing to invest in an up- and-coming neighbor- hood must be prepared to hold onto their prop- erties for at least a few years, if not much lon- ger, to maximize their investments. Though real estate is a sound in- vest- ment, it is not a get rich quick type of investment, so inves- tors looking to make a quick buck should con- sider alternatives be- fore buying investment properties. by Metro Creative Services Real estate investing for beginners Investors must be sure they have the time to address their tenants' concerns, especially investors with no plans to hire property management firms.

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