I’m passionate about investing. In fact, I’m so passionate about it, that I wake up every day wanting to help my clients strategize to maximize their wealth through the magic that is real estate investing. Investing is one of the best ways to secure a financial future, and long-term investment is the road to pave for your future dreams – be it college funds, a dream vacation fund or a retirement fund. The idea is, the longer time your cash must grow, the less you need to invest.
With so many options, and levels of risks, it can be confusing. Some want that easy, quick return. Others understand that with high valuations, it’s important to invest in the long-term. That’s why a strategy is so important, and that’s why I make sure that its’ the first thing I do with my clients.
So, how do you create a strategy to invest in real estate today? I’m sharing 7 tips with you, so you know exactly where to start.
The Essential Rules for Long-Term Investment
First off, there are a few things to keep in mind;
1. There will be risks
Nothing worthy is without risk. If you want higher returns, you have to take on more risk. Safety is available, but it comes with low yields.
2. Stick to strategies that work for you
Not everyone’s journey is the same. It depends on your risk tolerance, and what you can afford to do. Can you stand the pressure of high-risk strategies? Do you have the patience to wait out a higher ROI? Pick an investment strategy, understand it from A to Z, and stick with it. There’s no one-for-all formula.
3. Diversify
No investment is a 100% guarantee. That’s why diversifying your portfolio will give you the chance to invest in several areas, earn solid returns long term and incur less risk.
4. Understand your time limits
Time is a major factor in investments. The more time you have, the more you can make. And committing to your investment long-term actually lowers the risk. If you’re putting your money in the market, make sure you’re ready to keep it there at least 3-5 years.
Investing in Real Estate
One of the most reliable long-term investments in 2022 is real estate. Real estate is a go-to for many because investing in a property in the right location is a no-brainer. Even though it comes with upfront costs, renovation and ongoing costs, it’s often doable for those who borrow money and pay it back over time. And with interest rates at the rate they are, it’s a popular investment for those who want to own property and run their own show.
Real estate is also a passive investment and having the right advice can ensure that you buy the most strategic property for the long-term.
Having someone experienced alongside can advise you on the key considerations, to make the best decision;
1. Market Research (neighborhood analysis, investment potential, school district, rental potential, hospitals, parks, public transport and more).
2. Rental Property Analysis (if you want to rent it out, calculating important metrics is key to purchasing an investment property for this goal).
3. Real Estate Comps (comparison of similar properties in the same neighborhood, size, and features).
4. A Rental Business Strategy (deciding on a strategy for short term rental owners, including pricing, rules, regulations and ongoing expenses).
5. Financing (you can make a smart purchase and make money by renting out your property. Over time, your asset will be held and you’ll enjoy extra cashflow).
Investors are cautious in 2022
When it comes to money, no one likes uncertainty. But that’s where an experienced real estate investor like me can help. I can advise you on how to invest your money in a way to make it work for you, because investing is an essential pillar to building wealth. Contact me for a free consultation.
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