Calling all investors: who’s the one entrepreneur you look up to the most? Hint – it isn’t Donald Trump! No, the king of all businesspersons is Warren Buffett. When it comes to making the right decisions, he makes them without flinching. And, he offers plenty of advice for the budding investor, too. It’s because of these nuggets of wisdom that you can get into his mind and think like the great man. All you have to do is stick your head down Warren’s rabbit hole.
That’s a clever play on words; not a euphemism!
Never Lose Money
‘Cheers for that one Warren. I would never have thought of that!’ Okay, so his first tip sounds a little obvious, but it’s amazing how many people break the cardinal rule. And it’s easy to do if you don’t have the right mentality. Many investors chase profits because they see dollar signs and smell the money. The problem with this is that they take risks to make money. In the end, they lose more than they should and have to operate at a loss. It’s much harder to dig yourself out of a hole than to avoid it in the first place.
Have Healthy Habits
No, this doesn’t mean you should drink less and stop smoking. Well, you should, but it isn’t what healthy habits mean in this scenario. In this scenario, the practices relate to money. The bad news is that too many people have bad habits when it comes to their finances. But, the good news is that they are changeable. And, when you invest in real estate, they need changing ASAP. One of the easiest and hardest at the same time is saving money. An investment, even a good one, means unforeseen expenses, which means you need the cash flow to cope. Any investor that doesn’t save doesn’t have a security net.
Diversify
Buffett wasn’t the first man to encourage property buyers to diversify, and he won’t be the last. See, having a range of different investments is sound logic. If one goes bump, for example, the others might survive. Then, you only have to worry about one bad investment rather four. It’s for this reason that savvy investors have their hands in Boone real estate as well as New York property. The locations are so different that one factor shouldn’t affect both areas. Buying houses and apartments is also another safe tip, especially in this market.
Avoid Debt
Debt is a part of the average investment because properties are expensive. Still, it doesn’t mean a mortgage is your only option. If you want to make quick money, it’s vital to avoid debt as it sucks up the profits. The secret is to ask a family member for help or to use what savings you have as a down payment. That way, the terms of the loan will be much nicer as the repayments will be lower.
Now that you have Warren Buffett’s help, there is no stopping you making that all-important investment.
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