A fundamental lesson I learnt from the past investment journey which I thought to share.
Do not trust anyone! Your friends, family, and friendly investment property consultants, agents, and direct property suppliers.
I am also an advisor and a buyer’s agent, and I am not trying to shoot myself in the leg or the head in this case. Just don’t take anything for granted; always check for pieces of evidence, eliminate negative market trends, always check the risk in the property and its market, and if there is a likelihood for success. Find evidence in the marketing materials that you receive, even if it says black on white, that the GOV will spend 100 million dollars on new infrastructure. In that case, what will be the most robust investment to take advantage of this good spending news? Not everything, not every property configuration, and the list is long. Don’t take everything for granted! Some experience property consultants with a charming smile will encourage you to invest in a particular property, and when you will ask what the risk of failure or future projection is? They will say that they don’t know the future without a magic wand, but they assume over the long term, it will be alright. I know they are using the hope strategy, and clearly, it is a wrong professional statement even if they have their sale appearance and conviction appeal. Try to avoid it!
If you don’t buy well, you have very little chance to do well unless you have the money and the holding fund for the next 30 years; then, you might do ok, but not great.
When you buy well with the right strategy, check every corner in the asset, and eliminate every aspect that might lead to negative results, you will most likely do well to earn your profits in a reasonable time frame.
Real estate is a long-term investment, but you don’t want to make 20% equity over 25 years; that isn’t the more intelligent investment! You want to turn a few of your properties into a net asset base with a positive monthly income and an extensive Line of credit. This goal is only a result of significant equity gain on your properties which were associated with low equity and cash flow risk on the purchase date.
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