Investors come from a full range of experience. Many are fulltime investors; however the majority has other employment (aka JOB).
Investing goals vary widely. From income creation to meet current financial needs to long term strategies to create wealth for their retirement years.
Defining your goals and defining an investment plan that works with your level of risk tolerance. Is a critical initial step in the process of defining you investment style. It is very important when defining your style to make informed decisions and determine for yourself what works for you.
Numbers first, understand all the numbers that are important to successful investing.
Here are some to consider, price range of prospective investments, type of financing, yield to maturity, profit goals, tax impact (tax rates/depreciation), cash flow, ROI, cash on cash, cap rates and interest rates. Many times the financing structure is key to a successful investment.
Next, define your investment strategy. Briefly a few of these are buy and hold, flip, pre-construction, tax sales, buy ugly, lease/option and pre-lease. There a many different styles and they will be detail in future articles.
Now you know your investment style, financing requirements and goals. Now your ready to make strong offer to enable you purchase at the best possible price and terms.
When you purchase make sure you cover all the bases. This is where a good team is critical. Your Realtor, Mortgage Specialist and Title/Escrow specialist will be key to a smooth and profitable process.
For more information on investing visit www.MarkWatterson.com or call me 801.815-0411