Showing posts with label Investing. Show all posts
Showing posts with label Investing. Show all posts

Wednesday, 23 January 2013

Real Estate Investing - Strategies to Become a Successful Investor and Create Wealth By Ajibola Osho

Real estate investing is one the pillars of wealth creation in the world today. The last time I looked at the Forbes list of 400 richest Americans, I could still count over 31 tycoons listed as billionaires.
In the same vein, you have individuals in your city and state who have made their fortune and hold their wealth in property investments.
Why you need to invest
In his essay "Theory of Human Motivation" first published in 1943, Abraham Maslow, father of behavioural psychology observed, that people are motivated to fulfill three basic needs. The three basic human needs are food, shelter and clothing. And many people will try to fulfill these three needs, before any other need.
When you invest in real estate, you add value to your customers in one of the important area of human needs-shelter. You are investing in an evergreen industry.This is why, I believe you should include property investing as part of your wealth-building portfolio.
However before you go out and buy your first property you need to have the right plan of action to succeed. The first thing you have to be aware of is that...
Goals are important.
Your need to know, what you want to accomplish:
  • Are you looking at wealth accumulation within a short time frame (3-7 years)?
  • Are you investing for the Long term (retirement)?
  • Do you want be a Full time investor and derive all your income from your real estate investment?
When you ask yourself these critical questions, you are able to focus and achieve your dreams.
You need to develop critical success traits.
It is important you develop or become aware of the traits, you need to win as a real estate investor. Five main traits are important for success:
  • Competency in your niche, this means you know about the basics, at the minimum and then become excellent in the niche you decide to invest.
  • Control over your emotions. This is important if you are going to stay in the investing arena for the long haul because there will always be difficulties in the real estate market. The difference between a novice and a professional is the ability to ride the eye of the tiger without getting into the belly of the tiger. Being a real estate investor takes guts and you need to have them if you want to become wealthy
  • Comprehension. This means know your market cold. You understand who your customers are, what they are looking for, why they want to deal with you. If you lack these key trait-insight into your market-you are doomed to fail.
  • Consistency. This means you have focus and discipline to, take action daily, weekly until you accomplish your goals.
  • Integrity. You stay true to your principles, because integrity is important in real estate. This means you are trustworthy, to your bankers, investors and tenants.
Strategy vs. tactics
The strategy (what to do) is more important than the tactics (how to do) of real estate investing. Let me explain.
If for instance, you wanted to gain wealth in a very short term then to buy and hold real estate, which is a long-term strategy-will not be the right strategy to achieve your goals. Flipping and wholesaling properties- buying undervalued properties and selling at a higher price to gain profit-may be the best strategy.
Knowing enough vs. Knowing it all
I think it's important to have an understanding of real estate investing, however you don't need to know all about real estate investing to start.
You need to one thing that I think is important for an investor... You need know enough about the basics-how to analyse properties, how to get financing, and how to assemble you real estate team together. That is it.
If you wanted to make a full time career as a real estate investor, then you would have to know more. You would have to specialize in a niche.
I am not going to spend many hours learning about short sales, wholesaling and foreclosing investing especially if I am not going be a full time investor. It would be counterproductive for me, when I should spend my time doing what I am best at doing.
Let's recap, to succeed investing in real estate...
  • You need to understand why you are investing in real estate.
  • You need to develop critical traits for success as a real estate investor.
  • You need to choose the right tactics to match your investing objectives.
  • You need to know enough about what you want achieve
This is how I have applied myself to real estate investing. Moreover, it has helped me transform my losses to wins and I enjoy the cash flow from my properties,with the knowing I will become financially free.
Ajibola Osho, has a passion for helping investors achieve their wealth building goals so they can live a wealthier, happier lives, they always dreamed of. Do you want to be financially free and start living the life you always wanted? Sign up now to my free newsletter.Plus receive a copy of my special report of investing mindset guide
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How Do You Regain Control Over Your Investments When Everything Seems to Be Working Against You? By Adri Mitra

How do you regain control over your investments when everything seems to be working against you?
At very first, do consider managing your cash resources with the greater flexibility and superior control offered by separately managed accounts? With separately managed accounts, you control your investment exposures to ensure that they remain suitable for your objectives, which is vital in uncertain market conditions. Structured specifically to fit your liquidity needs, investment guidelines and risk appetite, separately managed accounts can help you to:
(i) Preserve capital (An investment strategy where the primary goal is to preserve capital and prevent loss in a portfolio. Preservation of capital is a priority for retirees and those approaching retirement, since they may be relying on their investments to generate income to cover their living expenses, and have limited time to recoup losses if markets experience a downdraft. This strategy would necessitate investment in the safest short-term instruments, such as Treasury bills and certificates of deposit).
(ii) Optimize liquidity management (It means 'The amount of cash a company or individual has on hand or can generate quickly reveals how healthy the company or individual is financially. High levels of available cash indicate that the business or individual can pay off debt easily when due dates occur. The types of assets a company or individual has and the marketability of those assets are where a discussion of financial liquidity begins').
(iii) Gain daily portfolio transparency (Portfolio Transparency means 'The increasing complexity of property portfolios with a mix of direct and indirect investments or with a range of investment goals and organized in a variety of legal entities makes having an overview of the whole portfolio a key to success'.
When dealing with large amounts of data, even minimal errors made in processing or transmitting information can have considerable effects on the way in which the value, financial health, and profitability of a portfolio are displayed due to the high number of transactions involved. As well as decreasing the risk of error, data warehousing uses data analysis to offer potential for lasting optimizations of processes and results.
This transparency allows us to make long-term improvements to communication and cooperation, leading to increases in liquidity).
There are a lots of financial consultants or professional financial agency are there to offers cash management solutions customized for your needs, supported by ongoing research and analysis and timely, in-depth reporting that can provide vital support to your treasury operations. Support includes or solution provides are:
(i)Strategic Liquidity Modeling. To assure an absolute focus on changing liquidity needs to clients' or yours portfolios are modeled and then continually reviewed to ensure that liquidity needs are up-to-date, allowing the portfolio structure to be current while minimizing cash drag.
(ii)Trading Compliance. Multitude trade compliance process helps ensure compliance with investment guidelines. The credit research team updates and adds to proprietary buy list and continually monitors credits held in client portfolios. Annual audit evaluates trade compliance with clients' or yours investment guidelines, best execution, as well as credit approval and monitoring process are very fruitful.
(iii)Proprietary Research and Reporting. Professional service providers or concerned online portal provides immediate access to your holdings with breakdowns by asset class, issuer and ratings. You may get following services also:
- Proprietary research on each security in your portfolio.
- Access to monthly and quarterly accounting reports, such as cash reconciliation reports, month-end statements, Notes to Financial and general ledger reports with customized charts of accounts, as well tailor-made pricing support and custom accounting reports to meet your specific needs along-with audit support (if needed).
- Exclusive access from library of research focused entirely on short-term cash management topics.
While the world's financial markets continue to churn, Separate Account Management may offer you increased control and peace of mind in knowing that your portfolio was built to suit your risk tolerance, return expectations and specific operating liquidity needs.
Article Source: http://EzineArticles.com/?expert=Adri_Mitra

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