Investing Biz

When I listen to this podcast…I am thinking

http://iloverealestate.tv/one-sad-truth-about-property-and-the-silver-lining/

Every strategy works but you need to know does this strategy work for you by considering 4 important matters

1. Expected return: how much money you want to make per year.

For example, is this market big enough to provide the return you want easily?

2. Risk tolerance: how much money could you afford lose per year

For example, by holding the negative property, are you comfortable to loss $13K per year for future potential gain?

3. Commitment (Time you are willing to spend on learning this strategy and overcome obstacles)

For example, do you know you actually just need to spend 3 days learning option trading but in order to understand your personal fear and gear, it most likely take 7-10 years. You can attend 3 days boot camp learning property renovation but it will take you 3-5 years master on this strategy.

4. Personality & lifestyle (your personal strength and weakness, passion and ongoing education required) For example, are you comfortable to negotiate with people for property development deal? Do you have excellent communication skill or terrible written skill and how do they apply to the strategy you choose? Do you think finding the mentor to guide you through all learning is not necessary and you prefer to do on your own? Do you think ongoing education is not necessary when you are investing? Do you think you just need to learn how to trade stocks or property investing without learning legal protection and tax saving knowledge?

The bottom line is:

You need to know every investment you choose from option trading, stock value investing, FX, commodity or property investing, all of them are seriously business. All of them will require your time, energy, effort, commitment and constantly learning.

If you don’t treat them as your full time business, you are most likely to get the hobby return not biz return. And the path you choose can change your entire life and even your next generation.