RENTALS

Investing Strategies

Submitted By: watterson - March 1, 2007

Investors come from a full range of experience. Many are fulltime investors; however the majority have 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 your 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, (1) price range of prospective investments, (2) type of financing, (3) yield to maturity, (4) profit goals, (5) tax impact (tax rates/depreciation), (6) cash flow, (7) ROI, (8) cash on cash, (9) cap rates and (10) interest rates. Many times the financing structure is the key to successful investing.

Next, define your investment strategy. Briefly a few of these are (1) buy and hold, (2) rehab and flip, (3) pre-construction, (4) tax sales, (5) buy ugly, (6) wholesale contracts, (7) lease/option and (8) pre-lease. There are many different styles and there will be more details in future articles.

Now you know your investment style, financing requirements and goals. Now you’re ready to make a strong offer to execute your 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 the key to a smooth and profitable process.

For specific market area details please visit www.MarkWatterson.com or call me 801.815.0411
Mark Watterson is a Principle Broker with Principle Realty Group, Inc and a licensed Senior Mortgage Loan Specialist with Envision Lending Group.

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