We can get consumed with looking for the “perfect deal” to invest in. In all reality, there is no such thing. The only thing that exists are the decisions to invest and the decision to not invest. The key is to gain confidence by educating yourself on the facets of the investment type.
For instance, you explore the idea of investing in multifamily, you read a few articles, listened to a few podcasts, always felt that real estate was where you want to put some capital but you really don’t want to be the landlord. You seek out opportunities that fit that criteria as well as other investment criteria you might add to that such as markets types, asset classes and what ever makes you comfortable to make the investment.
Once you provided yourself with some form of education, you then must put those steps in motion. Action steps help move us forward, so be bold and work your own process. Don’t rush to find the right company to seek investment opportunities. Take measured action steps to find the right team of partners to invest with. You already took the time to educate yourself, got familiar with the processes and even figured out your investment criteria so why would you want to rush the most important step which is seeking the right company to partner with on an investment?
When it comes to money and finances, the thought of losing it holds us back. Why go down the path of education and networking if you aren’t going to put it into practice?
- Educate yourself on the investment type you want to focus on
- Network with sponsors that have opportunities, vet them, get to know them and align criteria prior to any investment
- Commit to doing one step at a time and get out of your own head
- Investors understand their risk tolerance
- Start small (minimal investment), you don’t have to go big
- As investors gain confidence, they invest more capital or more frequently
- Don’t have to invest in the first deal nevertheless, every deal
Most of the time, we think investing needs to be active but as we understand more about the concepts we learn of investment opportunities with a passive approach. Most investors have invested in the stock market without even knowing what they are investing in. Either through a 401k policy or with an advisor who are managing on their behalf. Investing with a real estate firm, passive investors already understand the concepts, market, terms and you have a good understanding of what their returns are going to look like during the holding period. Now ask yourself, what’s preventing you from investing passively today?
Pingback: What is Syndication? – The Fortes Company