Whether you are joining a full service real estate investing syndication or investing in other assets, there are fundamental principles that every investor must follow to be successful. Warren Buffet has come up with nuggets of wisdom for many years as a successful investor. These 3 tips from him will ring true as you invest more and more.
Investing in What You Understand
If you come across a deal that seems lucrative but don’t understand how and why that is, you should not invest in it. Doing so will make you more susceptible to scams, investing mistakes, and ultimately losing money. Without knowledge of the investment method (or of an entity’s inner workings, competition, and risks in its industry), you put yourself behind and lose the ability to be proactive with your portfolio.
When you stay within your realm of expertise, you can deal with changing financial climates, enjoy investing more, and be at ease knowing that you made informed decisions. Investing can be risky, but it doesn’t have to be a shot in the dark.
Maintaining A Healthy Margin
Before apartment investing in Los Angeles or out of state, make sure that you have liquid reserves available so you can continue living. Putting money in a deal with your entire savings is extremely risky and not a very smart move. Keep reserves away from investing and use cash that you have set aside specifically to invest.
Finding Possibilities While Everyone is Afraid
Investors will be running on fear when their investment doesn’t pull through for them, and subsequently make rash decisions by pulling out of their realty investment early. When falls occur, it can mean more opportunities to make money. As an example, if the housing market in Irvine or Long Beach dips, you can look to other cities like Garland or Irving in Texas because the real estate market there may be more attractive. Well-minded investors will find favorable moments to buy at a discount while everyone else makes decisions in fear.
We at Creative Realty Partners will help you understand the multifamily real estate market and guide you through the process to make sure that you make sound multi-family apartment investments no matter what the market does. To answer your questions about our business and our investment opportunities, click here to read our FAQs.