What Are Your Investment Advantages?
As an investor, you want investment advantages because how do you manage your own investment portfolio and take advantage of unique tax benefits?
Property investment success, in all it’s shapes and sizes, whatever it means to you…is all about preparation, focus, determination and action with mitigated risk taking…
Being focused in property requires a solid business plan. You need to be prepared and organised to know where you’re going. This is why you’re setting your goals clearly in writing, right?
This is where preparation meets motivation…once you put your pen to paper and start visualising and framing the end results in mind, it has far more graphic impact and motivation in achieving your goals.
Thinking about what you want to do and why you want to do it, is the first step in understanding your motivation to do you want to do…are you wanting to buy-and-hold or flip houses? If you prefer quick flips, ask yourself why?
You want to know what property type and market to invest in, as well as the price range as this sets the frame work or structure in a firm business model:
1. Preparation and thoroughness means doing your due diligence, which means you’re not making any emotional decisions or taking on commitments unless you know and understand the results of the research you have done.
Next step is speaking to three real estate agents to get a sense of the market and whether property you’re interested is a good deal and stacks up in terms of research you’ve done via property research institutions…
You want a well structured, defined, yet flexible investment strategy. Why? Because if you too get rigid in your way of thinking, you could miss the target, even though all of the peripheral indices and factors tell you to rethink the road they’re going down…so you want to be flexible and open minded.
Prudence means protecting your investments via risk management, and this strategy includes using the experience of a street smart and successful real estate agent, property inspector, lawyer and tax accountant as part of your team.
Many investors try to go it alone don’t know how to handle the market ahead of them and fall into a series of unexpected problems. The right team supporting you can save you time, money and your peace of mind.
Determination means more than staying motivated in tough times because you want to know and understand the bigger picture in mind. You see, the reason why a lot of people make emotional decisions when it comes to real estate is because they’re not serious in treating investments as a business.
More often than not, they’re inexperienced investors or just naïve in seeing real estate in a very simplistic short-term perspective, so they’re not clear about the end results and time frames.
They’re often affected by all of the negativity and fear mongering out there. If you look at the bigger picture, you’re not going to make short-term, impulsive decisions.
You want to use your investment advantages because you understand and apply the fundamentals, which means you’re not reinventing the wheel that many successful investors already use to make millions of dollars in real estate, right?