What’s Your Investing Strategy: Sunday Morning Thoughts 19 August 2012

strategy (Photo credit: Sean MacEntee)

What strategy do you use to put your money to work for you?

Some people may say they invest in a mutual fund, have a 401k with a fund manager they have never spoken to directly. Or some people having a distrust of banks and the banking system may actually put their money in a mattress.

Putting money to use to make money is a strategy as old as time. Some people believe that working for money is the best way to make more money, but near the end of the week, they always seem to be waiting for the next paycheck. In essence living from pay check to pay check, but never seeming to save enough money.

Then there are those that invest in the stock market. They buy stocks based on a tip someone gave them, or they invest based on someone else’s opinion of how a stock will perform. From day trading, expiration trading, buying stock, dabbling in options, etc. But if you are a novice then you may not know the land mines which await you when you enter the battle field of the stock market.

Isn’t that what the banks were doing with the money you placed in the bank before the system took a down turn, they even charged you fees for the privilege of leaving your money with the bank. Well, they do keep it safe, don’t they?

Why is real estate investing a great investment option even for a novice?

Most people can look at an area and decide if the area is good or otherwise.

There are many strategies in real estate investing but one of the best strategies, is do you feel the investment is sound?

The other questions you can ask yourself:

What can you do with the property to improve it?

If you need to sell it how much and how fast do you want to sell it?

Can the investment sustain itself and give you cash flow?

With real estate investing one golden rule, never attach yourself to a property. You will come across many good deals in real estate investing but never hold on to an alligator just because you love it.