“Most people know how to set goals; few know how to achieve them,” says esteemed investor and author of Rich Dad, Poor Dad Robert Kiyosaki. This holds true for most, where you may have a clear idea of what your financial goals are, but you’re unable to define the path to get you there.
That’s why we’ve created this guide to show you how to best implement a real estate investing strategy that helps you reach your ultimate financial goal. We’ll show you what types of properties you should be investing in, how much risk tolerance your portfolio can handle, and what type of funding you should use to maximize your returns.
Define Your Financial Goal
Before you get started, you need to clearly define your goal. We recommend asking yourself: “What do I want to get out of my real estate investments?” By answering this question, you will develop a full understanding of what your main financial goal is.
If you still have difficulty finalizing your goal, here’s what many of our clients focus on:
- Increasing their children’s college tuition savings
- Retirement funding
- Diversifying away from the volatile stock market
- Creating additional sources of income for a more stable future
- Achieving financial freedom
After considering the goals above and deciding on yours, you’ll quickly realize that most fit under one of three broader real estate investing goals. These goals are:
|Real Estate Investing Goals||Description||Goal Examples|
|Income Now||Generate consistent cash flow immediately with higher yields and risk tolerance.||– Achieve Financial Freedom|
|Wealth Builder||Maximize your total returns by steadily building your ROI over time.||– Secure your family’s future
– Fund your retirement
– Increase college tuition for kids
|Wealth Protection||Preserve your existing capital while building future wealth.||– Diversify away from the stock market|
Discover Your In-Depth Real Estate Strategy
Once you’ve determined which real estate investing goal best suits you, we’ve created detailed strategies for you. Our strategies function as a helpful guideline that addresses:
- What specific types of properties you should invest in. Should your investment properties offer long-term appreciation or those more likely to produce immediate cash flow, or both?
- What method of funding you should utilize. Should you finance or use all cash?
- How much risk tolerance your portfolio can handle. Should you take an aggressive or more conservative investing approach when it comes to risk-and-reward?