Investment Strategy

980 Words2 Pages

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...

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...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.

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