Learn from a Real Estate Financial Planner. Bring your Real Estate Investing business to the next level.
In this video you will learn the following…
• Knowing Your Finances Leads A Financial Plan
• Creative Strategies to Plan Your Legacy
• Looking at Portfolio from a Tax & Planning Perspective
FIVE Timeless Principles For Investing
1. Take a Long-Term Perspective
If you take a long-term approach to your investing, then you aren’t as susceptible to market shifts. You can buy at the top of the market and sell years later at the bottom and still make money, as long as you keep it long-term.
2. Always Buy Value
Buying properties that have a value-add opportunity is a good strategy to have. However, there are other ways to get value from a property.
You could buy a property where the rents are low, and you can increase them. Or you could sell off a vacant lot that is attached to the property. There are many creative ways to add value to a property.
It’s important to look for opportunities that other investors might miss.
3. Work to Minimize Correlation
A positive correlation is when all your investments move in the same direction. Be careful and diversify your money. If all your investments are in one asset class, like stocks, your portfolio could become very volatile in a down market.
Combining Stock investments with Real Estate investments minimizes positive correlation between the two. Portfolios like this can avoid going down at the same time or the same rate.
4. Prudent Use of Leverage
Leverage can be the key to a successful Real Estate portfolio. It also can be the key to scale a portfolio very quickly.
However, you must be prudent with your use of leverage. Leverage can be a disadvantage to you if used incorrectly. Buying overpriced and non-cash flowing properties with leverage could lead to financial ruin. This happened to a lot of overleveraged investors in the last Recession. That is why we stress the importance of the property cash flowing from the beginning.
5. You Can’t Predict the Future
No one can ever know for sure if prices are going to go up or down. Or, if it will be a buyer’s market or a seller’s market. This is why buying properties for cash flow is so important. With cash flow, you can withstand any downturn in the market.
Don’t forget, I lead the Encore Investment Team of Realtors. We will guide you along the path of successful investing. See below to book a strategy session.
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