Becoming An Average
Investor
·
Many people become investor with paper
securities.
o
Stock
o
Bond
o
Mutual Fund
o
Retirement Plans and Accounts
o
Annuities
·
“The reason most average investors lose money is
because it is often easy to invest in an asset but difficult to get out. Your
exit strategy is often more important than your entry strategy.”
·
“When I look at the financial of a business, I
look at its guts. I can tell if the business is fundamentally strong or weak,
growing or declining. I can tell if the management is doing a good job or
wasting a lot of the investors' money.”
·
A purely mechanical, or quantitative, way of
picking stocks outperforms 80% of the professional stock pickers.
·
“Avoid transactions through panic; keep your
emotions under control.”
·
“Getting rich is automatic – if you have a good
plan and stick to it.”
Becoming a Professional
Investor
·
Real Estate
o
With your very first successful venture, you’ll
understand what it means to put other people’s money to work for you. You’ll
have an asset that keeps pace with inflation, generates wealth, and shelters it
from taxes.
·
“It doesn't take money to make money.”
o
Leverage
o
Tax benefits
o
Appreciation
·
“Make your money on the buy, not the sell.”
·
Prepare for opportunity
o
Start Small
o
Look for a Problem to Solve
o
Location, Location, Location – Sometimes...
o
The double-edged sword of deferred maintenance
·
“Master a formula and then learn another.”
·
Real
Estate Team Members - That depends on your personal circumstances and
goals. Common members for a real estate team include:
o
Real estate agent/broker
o
Insurance agent
o
Real estate attorney
o
Mortgage broker or loan officer
o
Home inspector
·
How to Get Started
1. Line
up financing
a. Look
for a lender
o
What are current mortgage interest rates, and
are they expected to change?
o
Given the type of property you’re considering,
what financing terms does the bank offer?
o
How long does it take to get pre-qualified or
pre-approved for a loan?
b. If
you have little or no money. You might be able to
o
Take out equity loan on your home
o
Obtain seller financing
o
Borrow from your life insurance policy
o
Form a group of investors and establish a
partnership or corporation
o
If all else fails, can ask a relative or friends
to help out, in which case make sure you put repayment terms in writing.
2. Rate
your property
3. Negotiate
your deal
Buying a Property
Selling/renting your new property
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