In fact, many investors have let their assets (real estate portfolio) scattered and lack an overall investment strategy. This leads to two important wastes: waste of time and waste of management resources.
For wise investors, they have a superior vision of investment strategy. This is demonstrated through a carefully selected and methodical investment portfolio. And this category often includes over 90% commercial real estate, a product line that brings investors cash flow growth through business activities.
In every long-term real estate investment strategy, investors tend to choose the following two criteria to make investment decisions: one is to keep assets growing steadily, the other is to ensure profitability. profit through business activities.
To do this, wise real estate investors need to have a superior vision in planning their investment portfolio and the ability to manage their investment portfolio scientifically, ensuring that assets increase in value. value over time and bring profits to investors from business activities.
Set clear goals
At any given time, different investments perform differently, so investors must determine their ultimate goals before choosing assets. While a single investment may not cause a portfolio to lose money, the combination of investments, as well as risk factors, can affect your bottom line.
However, the types of real estate you have in your portfolio will play a big role in achieving your goals, as rental properties often generate long-term passive income, while Renovating and reselling real estate often generates short-term profits.
Separate spending budget from investment amount
It's also important to separate your spending budget from the money you set aside for investing. Analyzing and updating your monthly budget will also help you start building long-term wealth. Therefore, analyze your monthly net funds (cash, monthly salary, savings and retirement funds, etc.) then check your monthly expenses and you can estimate how much money you have. may be for investment purposes.
After carefully analyzing your monthly budget, you also need to leave an amount for outside expenses such as property maintenance, insurance and transaction costs to buy new real estate, etc. You It is also necessary to establish a fund for unexpected expenses to avoid difficult situations at times of need.
Operate and manage real estate investment assets
After building a real estate investment strategy, in this third step the investor will begin to deploy and execute the work. This step requires investors to be really careful, focused and serious, to clearly plan what to do to avoid wasting money, time and effort.
In addition, in order for service quality to always be maintained with clearly stated and strictly controlled commitments, operations and management need to have an overall view of service quality.
Monitor, evaluate and adjust
During the investment process, there will be cases where investors lose assets and brand reputation, so investment expectations are not as expected. Therefore, this fourth step will help investors overcome the above situation.
Normally, to properly evaluate investment performance, continuously and comprehensively monitoring the market is extremely necessary. In addition, investors also need to manage and monitor service activities throughout the business process so that when errors occur, they can be promptly adjusted.
Hope this article has been able to help you gain more knowledge. Please contact AHS if you need further advice.