Investment Strategy

980 Words2 Pages
bulb-icon

Recommended: Writing Goals For Personal Finance

In order to for me to be successful with such investment Capital and as investor I would have to formulate goals I would like to accomplish, implement plan (vehicle) to reach goal, maximize profits, reduce risk, use creative financing, increase my exposure to opportunities and protecting my asset(s). When I find property(s) that meet my investment objective, I would tie it up and negotiate to win, take action and control it. If the property does not meet my objective I wouldn’t buy, or alternatively withdraw from the transaction, or renegotiate to meet my objective. I would also develop an exit strategy that would complement my plan and goals, learn quickly from any errors and start all over again.

Starting with One hundred fifty thousand dollar dollars, in deciding the best investment money can buy, I would have to limit myself to properties I have gained some experience and that I can get help when needed in managing, holding or “flipping”. The property(s) type made for this discussion would be for single family and or Apartments, and after basic simple “cosmetics” or renovations, either I would hold if it cashflows or sell depending on my available options. I would have to look at what sales, comparison data and best use of the property in the neighborhood dictates, estimates about debt service ratio should be above 1.30 over at least a holding period over eighteen months based on current market data especially in these downward recessionary market.

Secondly in determining how to maximize profits, I would develop my income and expense projections to enable me know my Net operating income(NOI) and debt service ratio ( DSR) and that should be above 1.30 prior to flip or enable me refinance for “cash out” at max s...

... middle of paper ...

...nts, sales people, mortgage brokers, lawyers and other professionals. I would network, look for owners in distress, seller ignorance and the “grass is greener” sellers.

Since cheap properties could come from all sources, I would advertise in several newspapers starting with small newspapers to include “for sale” by owners, notwithstanding I would maintain a competitive and strict budget. Furthermore, I would also solicit deals and implore anyone that refers to me seller(s) leading to deal consummation would receive a cash reward for twenty five hundred dollars to motivate people to get the message out there, and ultimately the right investment has to pay for any “built in” expenses incliding but not limited to protecting the good networth with legal entities eg. LLC’s, Trusts, corporations, using good legal strategies and remembering one size does not fit all.

Show More
Related

  • Distressed Real Estate and Foreclosure

    933 Words  | 2 Pages

    In existence is $150,000, specifically set aside for the purchase of distressed real estate. This essay will outline a detailed strategy ensuring a maximum return in regard to the financial investment made on the home. Including a description of distressed real estate and foreclosure in addition to how utility can play a role in the decision-making process.

    Read More

  • Flipping A House: Real Estate Strategy

    1005 Words  | 3 Pages

    When working within the realm of real estate, flipping houses is one of the most lucrative projects one can undertake. The premise of this idea is buying a home in need of repair, renovating it, and selling it at its newly appraised value. In high school, I worked alongside my mother to renovate a home in our small town of Trinidad, Colorado. The invaluable lessons I learned throughout this business venture gave me insights into the inner workings of house flipping. What I gained from this experience will lead to better decision making if I choose to take on another project. With a $150,000 budget, the most important aspects to focus on in a renovation would include updating appliances, applying fresh paint, installing proper flooring, and revamping the exterior. Assuming that the home being foreclosed on costs $110,000, I would allocate $20,000 of my budget for renovation expenses. This leaves a $20,000 buffer to be used as an emergency fund.

    Read More

  • Real Estate Agent

    577 Words  | 2 Pages

    Buying or selling a house or an apartment is one of the biggest decisions of a person’s life. And when selling or establishing a price for real estate, people seek out real estate agents to do the dirty work. A real estate agent has to convince a prospective homeowner that he or she is trustworthy and knowledgeable. In many ways, the agent acts as a counselor to individuals and families about to embark on a huge commitment. Real estate agents have a thorough knowledge or real estate market in their community. They

    Read More

  • Essay On Fixing And Flipping Houses

    771 Words  | 2 Pages

    ...s selling for? What is the demand for properties similar to yours? Once you find an appropriate buyer and an appropriate price, it’s time to make the sale, and walk away with your wallet a little fatter.

    Read More

  • Playing the Stock Market Game

    670 Words  | 2 Pages

    There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.

    Read More

  • Distressed Property in Holyoke

    1125 Words  | 3 Pages

    I've a tendency to have a one-track mind, which in this case comes in handy. In buying this property, I'd aim for a (temporary) home and a place of work, and a way to help the American economy whilst also advancing a cause I believe in and, hopefully, making a tidy profit. The business model of my firm – as with most open-source business models – would benefit from low to nonexistent software development costs, reducing the barriers to entry into the market. The enthusiasm and existing quality of the Linux community and software likewise will assist in scaling the firm by providing a natural market and by contributing code and bugfixes. This business model would aim to address most of the problems of Linux (which are economic and political) by borrowing from the strategies pioneered by Apple against the Microsoft monopoly.

    Read More

  • Foreclosure.com Scholarship Essay

    2067 Words  | 5 Pages

    Every collapse offers new opportunities to rebuild with a new vision, but it’s up to individuals to take the right risks and the right sacrifices to transform a distressed piece of real estate into a progressive model for community development. While many see the current situation of real estate as an opportunity to purchase undervalued pieces of property as investments, I see the opportunity to become part of social and agricultural movements that have the capacity to thrive under current conditions. Urban farming and community coordination are both aspects of an environmentally sustainable society that ensures maximum returns on investment from financial and personal satisfaction perspectives alike. But before I come off as a complete idealist, I should assert that while heart and the right intentions are great, an investor needs to have a sound business plan, and a potential community action leader must have the right approach. With this in mind, if I were to acquire $150,000 in cash to be used specifically for a distressed real estate purchase, I would buy urban property in Detroit with the intent of making my new properties part of the growing movement of community supported urban farming.

    Read More

  • Portfolio Analysis and Investment

    987 Words  | 2 Pages

    This assignment is concerned with your understanding of the key issues relative to portfolio analysis and investment. In completing this assignment you are to limit your scope to the US stock markets only. Use the Cybrary, the Internet, and course resources to write a 2-page essay which you will use with new clients of your financial planning business which addresses the following issues and/or practices:

    Read More

  • Buying A Home

    1232 Words  | 3 Pages

    The first step to buying your home is assessing your financial situation. A person must evaluate how much exactly they can afford and borrow. Most people hire a real estate agent to find a home. A real estate agent can help in finding different homes that suit the person’s needs. At the Department of Housing and Urban Development’s website, “You'll want to start searching for a broker as soon as you decide to buy a home. Talk to several and find someone you think you'll be comfortable working closely with”(1) Having a wide range of options is always helpful. An agent can also help in negotiating the price, and showing what the potential buyer needs after finding a home. A buyer might also need the services of a lawyer, a loan officer, insurance agents, and an accountant. In all purchasing your own home is a daunting task if you plan on doing it alone.

    Read More

  • Investment Strategy

    1502 Words  | 4 Pages

    The execution of our investment strategy occurred in three stages. First, we invested in t-bills and bonds according to our original set out investment plan. This was to decrease potential losses and risk associated with the declining equity market. Therefore, we invested about two hundred thousand of our funds into these low risk assets to maintain buying power. Due to inflation, we did not want to lose buying power by leaving funds in an account without earning interest. Further, we invested a small portion of funds into the commodity market. With a slumping equity market and a positive outlook on the gold commodity, we invested in Gold Corporation at the same time we invested in income assets.

    Read More

  • Pros and Cons of Buying a Home

    1906 Words  | 4 Pages

    Most people, today, are looking forward to buying their first property. When individuals decide to buy a house those individuals would have to look at all their options and all the advantages and disadvantages that come from purchasing a house. The economy plays a huge role in the decision whether people will purchase a house, purchase a condominiums, or rent property.

    Read More

  • Strategy Implementation

    1269 Words  | 3 Pages

    This report provides an analysis and evaluation of strategy implementation used by California Pizza Kitchen (CPK) and discusses the effectiveness of their strategy through organization design, control systems, people and culture. My research concluded that CPK relies on control systems to undertake a majority of the company’s operational activities and that human resources and organizational culture must support the strategy implemented, which it does in in the case of CPK.

    Read More

  • Real Estate Industry

    1820 Words  | 4 Pages

    Introduction Real estate is a fixed, tangible and immovable asset in the form of houses or commercial property (Seldin & Richard 1985). Real estate market involves developing, renting, selling/purchasing and renovating of these assets (houses). Market participants include developers (contractors, engineers, and so on), facilitators (mortgage companies, real estate brokers, banks, management agents and so on), owners, renters (leasers) and renovators (Seldin & Richard 1985). Like other economic markets, real estate markets have internal and external forces that impact the market (Seldin & Richard 1985). Demand and supply forces have the major impact on the industry as they determine growth or decline in the market (Seldin & Richard 1985).

    Read More

  • Risk Management Strategies

    1713 Words  | 4 Pages

    The purpose of risk management is to protect an organization’s valuable assets information, hardware, and software. The purpose of risk management process is to identify and manage risks in such a way that a company is able to meet its strategic and financial targets. Risk management is a continuous process, by which the major risks are identified, listed and assessed, the key persons in charge of risk management are appointed and risks are prioritized according to an assessment scale in order to compare the effects and mutual significance of risks. It is very important that the organizations and business to be very well prepared to see what kind of risk we are facing, or the business can suffer in case of a major disaster.

    Read More

  • Financial Theories And Strategies

    1533 Words  | 4 Pages

    Financial theories are the building blocks of today's corporate world. "The basic building blocks of finance theory lay the foundation for many modern tools used in areas such asset pricing and investment. Many of these theoretical concepts such as general equilibrium analysis, information economics and theory of contracts are firmly rooted in classical Microeconomics" (Oaktree, 2005)

    Read More

More about Investment Strategy

Open Document