Some people treat real estate investing as a monolith. They have only one strategy for every deal, which means they often don’t know which deals to pass on. The important thing is to decide what kind of investments you want to make and then pick the right strategy to support your goals, not to force every “good” deal that comes along into your approach and hope for the best. In fact, the most unhappy investors I know take deals without examining whether or not they support their long-term goals.
Other than making money, there are three approaches to satisfying your goals:
- Passive income investing
- High-yield investing
- A blended approach
But the most important thing is to identify what your goals actually are.
- What are you trying to accomplish?
- What do you think about debt?
- How much risk are you willing to take?
- How quickly do you want to build your wealth?
- How much capital do you have to start with?
- How much time do you have and want to contribute?
Once you have decided what you want to accomplish, you can determine which approach best meets your goals. To help with that decision, I’ll talk about the pros and cons of each approach.Hermann says please like and share!