Four Major Questions of New Investors

Passive investing for aggressive returns sounds great. But, some new investors may have a few questions:

• Never owned income property.
• Owning investment property hundreds of miles away? Who will manage it?
• Real estate is not liquid. What if I need the money quickly?
• OK,  investing through RBS Homes sounds interesting. But what if RBS Homes goes away?  

Owning income property? That's a little scary.

Owning income property can be a little scary for a first-time investor. So learn first. Knowledge will reduce your fears. Find other investors at local real estate investment clubs. Study this website. Call us with questions. Consider working with a professional team as you get started. There is no need to do it yourself, and you will make mistakes that way. Successful ownership of income property requires mastery of several skills: property selection, restoration, tenant selection and management, rent collection, and property maintenance. Every single element requires significant research, expertise, and time commitment.

Develop and use a team of professionals to help you succeed in building a profitable real estate portfolio. Of course, we recommend RBS Homes as your partner.

Income property hundreds of miles away?

It can be difficult if you expect to do all the property management yourself. But do you really want to manage "tenants and toilets?" Consider your stock holdings. Do you invest only in companies near you? You expect professionals to manage your investments effectively. You choose good professionals and partners to manage your stock investments. You measure the quality of their work by the increase in your portfolio. Your real estate investments are no different. Build your professional team and use them to guide you to successful investing in income property.

Choose investment property because it is a good investment, not because it's close to you. Choose a great professional real estate investment team to help .you build your real estate investment portfolio. Let them manage the property. If you choose RBS Homes as your partner, measure our results by the growth of your real estate investment portfolio. We believe you will be delighted in the years to come.

Real estate is not liquid. What if the investor needs the money quickly?

Real estate is not liquid, so consider these three questions. 

Do you have a rainy day savings account? If you suspect that you might need this money unexpectedly, then do not invest in real estate. Your first investment should be in a rainy day savings account, which should have enough cash to carry you for at least a year. Until you build this account, don't invest in anything -- stocks, bonds, real estate, gold, or anything. Take care of unexpected emergencies. Don't invest your rainy day savings account in anything-stocks. bonds, commodities. You know that most investments can drop suddenly. Build your rainy day fund and keep it in cash or equivalents.

Only after you have funded your rainy day savings account should you start investing. Then, you can truly consider long-term investments, such as homes from RBS properties, which will generate annual returns of 25% or more to build your retirement account. 

When you sell, do you pay fees and taxes? Of course. Every sales transaction sale is a loss to fees, taxes, and inflation. In fact, taxes and inflation will be two major inflation risks in the decade (see the article). Investment homes from RBS Homes are some of the most effective investments in a high-tax, high-inflaiton environment. 

If it's a good investment, why do you want to sell? AT RBS, we believe you should make every investment carefully and wisely. A quick sale does not fix a bad investment, it only saves whatever cash you have left. The best approach is to avoid bad investments. Warren Buffet, the Sage of Omaha, said an investor should make only ten or twenty investment decisions in his whole life. This discipline forces the investor to look at each investment very carefully. Warren Buffet almost never sells, because he makes good investments. 

Income properties offered by RBS Homes produce up to 15%+ annual cash flow, plus up to 3% depreciation tax deferral, plus home value appreciaiton. In the past twelve months, through March, 2010, single-family homes in Houston appreciated 10.6%. Last year, investors in RBS properties earned over 25% on their investments.

What if RBS Homes goes away?

You certainly don't want to be dependent upon anyone else for your long-term financial security. As we all discovered last year, every stock brokers, mutual funds, banks, and large companies can disappear quickly. Don't put too much faith in banks or stock brokers.

RBS Homes carefully selects single-family homes that produce strong cash flow and have excellent potential for appreciation. If RBS Homes goes away, these homes are still good investments. Your security is owning the title to the property.

RBS Homes provides property management services. If RBS Homes goes away, then you will need another property manager. Just Google "property management Houston" to see a long list. However, you don't want just any property manager. You want a great one, with a good history and a large property portfolio. To provide our clients with an additional level of security, we have partnered with an outstanding property management company to provide back-up services for our clients. This company has over 400 properties under management, over 25 years in the business, and is family owned and operated. If you wish to leave RBS Property Management at any time, for any reason or no reason, we heartily recommend this company. 

We are driven to create financial security for our clients. We plan to provide great property investments and great management for our clients for a long time. If you want to learn more about passive investing for aggressive returns, then contact us -- 888-666-6402 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .