Small Investor Expectations and Building Your Own Estate
Increase Font Size
| 
Normal Font Size
It is important that we look to our future. What is the difference between a small investor and a large investor? Nothing really, except the amount of capital being invested; the fact that we do it ourselves; or the number of partners we have.
Everyone is trying to do the same thing – build an estate so that they, and their families, can live better or be independent later in life.
It is very important that you start planning for your future as early in your life and career as possible. Real Estate is a good investment, and since we are in the business why not invest in it? Use your talents and part of your earnings to start, and add to that as you can. The difference between success and failure is small. Just because it is a small investment does not mean that the principles of investing change. They don’t.
There are some basic things that don’t change.
1. Cash investment
2. Cash to loan ratio
3. Cash reserves
4. What are the real expenses
5. The risks in the investment
6. Rate of return on your cash investment
7. Capitalization rate
8. Length of the investment
9. Timing
There are several reasons that we can fail. Either we are short suited in some talent or discipline, but most often we are under capitalized. There is always something that happens unexpectedly and if we don’t have enough time or cash to cover the downside events we will fail.
I have learned that you must be prepared for these things; because the older we get the less time we have to recover. So be prepared the best you can for the things that we have no control over.
The only thing that remains constant is change.
