Whether you are a new entrant to the real estate market or perhaps you have been around for some time, do you have any particular property expert investors who inspire you. We all need ideas, need inspiration and if you follow somebody who has been there, done it and been through all the different cycles, it can often be very inspiring.
There is no right or wrong with regards to real estate investment, some people have different strategies which work for them while others go on gut instinct. The truth is that you need to use a strategy which you are comfortable with, which you can appreciate and fully understand. There is no point trying to follow an expert investor who uses a very different method than you are comfortable with. In many ways this is a recipe for disaster!
Experience breeds confidence
We’ve all seen the websites, the offers and the e-mails suggesting that making money in the property/real estate market is simple. The truth is that it is not simple, it takes time and above all it takes an investment strategy which can be adapted and change with the environment. That is why many relatively inexperienced property investors tend to follow a specific type of property expert. These are very often people who have not only made money in the good times but also been through the bad times and managed to survive. Love him or loathe him, Donald Trump is one such investor who has been there, done it, lost the lot and come back fighting again.
Quote from PropertyForum.com: “From Microsoft to real estate billionaire“
Stick with what you know
If you have a particular interest in residential real estate, do not venture away from your comfort zone. The reality is that there are more than sufficient investment opportunities for retail, commercial and any other type of property investment you can think of. There may be opportunities slightly out of your comfort zone which are too good to be true but if these do occur then you need to take professional financial advice as not all markets are the same. Stick with what you know and your comfort zone but if you are tempted to leave the zone then ensure that you have trustworthy advisers to hand.
Never be afraid to take a loss
The investment arena is full of investors who have made money, kept ploughing their profits back in and then unfortunately lost the lot. While it can be tricky to know when to take profit, perhaps the hardest decision is when to take a loss. Human nature often dictates that we are more positive about our investments than we should be on some occasions. It is difficult to admit we made a mistake, to know when to take a loss and unfortunately too many people continue to hold their losers which can very quickly wipe out all of your winners.
There are hundreds of well-known property investors whom you can follow, digest their life story and learn from their experiences. The fact is that once you think you know it all that is the time when you are at your most dangerous to lose everything. Keep learning, keep ahead of the game and ultimately while it is good to take a profit, you also need to know when to take a loss.