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Opportunistic VS Strategic Real Estate InvestingAs I continue to consult with individuals who want to invest in investment real estate, I find that most novice investors and even some seasoned investors really don’t have specific objectives in mind when they are investing. Some want to just diversify their overall investment portfolio, others want to just earn more money and others want to get out of the 9-5 rate race. As I continue to consult with
individuals
who want to invest in investment real estate, I find that most novice
investors and even some seasoned investors really don’t have specific
objectives in mind when they are investing. Some want to just diversify
their overall investment portfolio, others want to just earn more money
and others want to get out of the 9-5 rate race. These are all
great objectives on the surface and real estate investing can provide
you all of these benefits. However, you must go much deeper into your
approach if you truly want to be successful. These investors are what I call
opportunistic
investors. They purchase investment property on the premise that the
property is a great opportunity. They end up purchasing properties here
and there and have no real plan in place on what to do with them, how
to efficiently manage them or what the best exit strategy is. They do
not take into consideration how the investment property fits into their
overall strategy. The investment property may very well
be a great opportunity, the more important question to answer though
is this; “Does the property fit into your overall strategic plan?”
That question is a totally different perspective than answering if the
property is just a great investment opportunity. It requires that there
be a purpose and direction in your over all investing approach.
An opportunistic investor really demonstrates no direction. If
you follow the really great investors, you will find that they have
specific objectives they expect to achieve with their investments and
that they have specific metrics in place to determine if they are on
course. If you want to be a successful real
estate investor, you must learn to become more strategic in your
approach
than opportunistic. This doesn’t mean you ignore great investment
opportunities. What it means is that you evaluate every potential
investment
against your overall strategic plan. If the deal fits your strategic
plan, then by all means take advantage of it. If it doesn’t,
you can still benefit by referring the deal to another investor whose
plan it would fit. This can be done through an assignment fee or a
referral
fee. Either way The point to take away is to know the
difference between being an opportunistic real estate investor and being
a strategic real estate investor. The really successful real estate
investors are strategic. I will share more on how to become strategic
in the future. Let us know what you think. Article Tags: Strategic Real Estate, Real Estate Investing, Strategic Real, Real Estate, Estate Investing, Investment Property Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHORJay began his real estate investing career at the beginning of 2005.
He has been a full time investor since 2007. His business focus and
specialized knowledge is in rehabs, lease options, rentals, fix and
flips, discounted turnkey cashflowing properties for passive investors,
wholesale properties, self-directed IRA investing and basic asset
protection. In addition, he is a managing member in two commercial
projects. His expertise has been sought out as a consultant by
independent clients throughout the Midwest as well as California and New
York.
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