I am not asking about your Blood type! I am talking about the type of your investment strategy which you adapt in the real estate industry. Generally, it is the strategy which defines what type of investor you are in any investments. If you are new and would like to find out where you want to fit in, just keep reading.

Lately I have been working with more investors who wants take advantage of the current buyers market. They want to jump into real estate to harvest their money by buying investment properties. Some are new to the arena but have little bit of idea and knowledge which they acquired by hearing TV and radio talk shows. Many knows basic concepts of how real estate industry works which is a good start. They been tracking the market and waiting in side lines to get in at the right time. Few of them didn’t have time to do more research but they know the market is on buyers and likes to use the opportunity to diversify their portfolio.

It doesn’t matter whether they been following the real estate market or not. Most of them had similar questions on their mind like,

• Where do I start?
• What type of investment proeprty should I buy?
• Where should I buy, Northwest Houston, Sugarland, Katy or North Houston?
• What criteria should I use to filter the properties?
• Do I need to give more importance to school district or look properties close to commute and amenities?
• Is good appreciating subdivision a better option? Whether 3Bed/2bath/2garage should be my minimum criteria or should I be flexible enough depending the subdivision?

Investment Purpose – Define your goal?

The above questions were valid ones and they are common among owner occupants clients or new investors. But what investors should know is to set their mind set as investors. It is all about investing. It is a business and they not going to live there. So certain criteria’s will be different and don’t have to be the exact same owner occupants. More importantly investors criteria depends on their FINAL goal. First thing first, think about the GOAL you want to achieve.

What is your Investment Goal/Purpose?
What is your investment goal? Are you are buying for rental income/passive income to support you needs? Is it for retirement or kids education? Every goal has different outcome. If you are thinking about replacing your current income and want to add passive income to your income stream, you need to look for properties which are easily rentable and doesn’t have to be appreciate a lot. Cashflow should be the key.

If you are looking on retirement aspect, you either have to look for properties which appreciates or gives constant cashflow which can be again invested back in real estate or put in use for other investments. If you just want to make short term money instead of earning 1% in the bank account, then you are looking at buying and selling. So Investment goals will define what type of strategy you want to become. Next post will explain more in details about different strategies to implement depending on your goals.

About Vijaianand Thirnageswaram

I am a Proud Realtor of Texas, trying to guide and help clients to find their dream home and educate them to buy them for right price. I am also a Candidate for CFP who has more financial knowledge which allows me share and educate clients in any financial decision making process.

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