10 Commandments of Successful Investing
I heard on a podcast this list of rules to consider when investing in real estate. It is quite good and worth sharing.
Thou shalt become educated.
Knowledge is a powerful tool. Do your due diligence so that you are your own best advisor.
Thou shalt have a professional Investment Counselor.
Only invest with investment professionals who stay with you for the long-term so that you have a single point of contact to coordinate your entire investment plan. Advisors should buy for themselves what they sell, putting their money where their mouth is, and get paid for producing results rather than simply for advice.
Thou shalt maintain control.
Never leave your financial future in the hands of incompetent, unethical or greedy brokerage houses, fund managers or corporations. Always be a direct investor.
Thou shalt use prudent financial planning techniques.
Always invest with your goals in mind (retirement, financial freedom, creating wealth) and abide by your risk tolerance and investing style.
Thou shalt not gamble.
Be a prudent long-term value investor, never a get-rich-quick gambler, speculator or flipper by investing only in properties that make good financial sense the day you buy them.
Thou shalt diversify.
Reduce risk and maximize returns by investing in several areas as every market is different.
Thou shalt be Area Agnostic™.
Only invest with an advisor who is not partial to any one area or investment to avoid a conflict of interest. Consider a variety of opportunities.
Thou shalt borrow to maximize leverage and accelerate wealth creation.
Use as much borrowed money and as little of your own money as possible so long as the borrowed money can be repaid by the tenant. Let other people’s money work for you, reduce your risk and make you wealthy.
Thou shalt only invest where there is universal need.
No one needs stocks, bonds or gold but EVERYONE needs a place to live and with growing affluence around the world, consumption of raw materials will continue to cause upward price pressure on improved real estate.
Thou shalt invest only in tax-favored assets.
Non-cash write-offs and deductions are money in your pocket and real estate offers the best of both.
Jason’s Ten Commandments of Successful Investing
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