Is This a Good Investment?

One of the most common questions I get from the participants in my monthly income and wealth coaching teleconferences is, "Is XYZ a good investment ?"

XYZ can be a storage unit, gold, international funds, mobile homes, commercial, commercial real estate, you name it.

the answer I give each participant the same. It depends.

It depends on your personal wealth strategy.

Magic Wealth Strategies

the magic of creating personal wealth strategies that you can answer all your own investment questions simply referring to his strategy.

When developing a strategy for wealth, there are several key questions to answer so I can answer the question: "Is XYZ a good investment?" I'll share two of those questions right now.

Q # 1:

What are your personal preferences?

Different types of assets have different characteristics of the species. Successful Wealth Strategies is able to match the characteristics of a particular property of your personal preferences.

Is your preference High, Medium or Low when it comes to certain investment properties? Here are some personal preferences to consider:

the rate of return
Cash flow
Interaction with other people
Tax benefits

Once you identify your personal preferences, you can begin to navigate through a particular type of property to focus on.

For example, if you have a high priority to interact with others, then you can remove funds that do not have this feature. more personal preferences, you can identify, the more you narrow your choice of funds that best suit your needs.

What is your investment criteria?

Once you have identified the property, which still remains a lot of opportunities.

For example, suppose you choose a commercial rental properties and your property. There are thousands of investment opportunities in commercial rental property!

How do you narrow down the options? Quantifying their preferences.

For example, you might have a propensity for high rates of return and quantify it expected to earn at least a 20% return on your investment. And if you have a preference for a low cash flow, then you can set your criteria for cash flow as $ 0.

How you set these numbers?

numbers need to work with your wealth goals. This means that you need to run the numbers. If you apply the numbers where you are today, you get to where you want to be? If not, then your number is needed to change.

The end result is a set of criteria that the investment opportunity must meet in order to investigate further.

In the example above criteria, if the investment opportunity has a return rate of 15% and cash flow of $ 1,000, you will pass on it because it does not meet all of your criteria.

This also means that if there are opportunities for investment return rate of 50% and negative cash flow, you will pass it up, because it does not meet all of your criteria.

Taking time to select your type of property and set the criteria for investment funds, which is often a huge time saver. Imagine being able to sort through the 100 investment in just a few minutes to find 5 of investments that meet your criteria. In addition, you can now focus their time doing their due diligence to only those investments that meet your criteria. It is a powerful system!

is a good investment?

So, getting back to the original question - Is this a good investment? Answer: It depends. It depends on if it meets your investment criteria. If not, then it will continue.

Warning! Most investment mistakes come from not following a well thought out strategy for wealth. I know a few people right now who are struggling with their financial situation. Why? When I look at what they did, it is clear that they have done their investment without a clear strategy. Or, they had a strategy, and departed from him.