Short Sales Investment Self-Defense
November 3, 2009 by admin · Leave a Comment
Short Sales Investment Self-Defense
When it comes to short sale investing, there are plenty of self-proclaimed “black belts” but upon closer inspection, the facts are far less impressive; the vast majority of belt holders simple are attempting to keep their tunics drawn with a few modest colors scattered about. But low and behold, gaining a black belt in martial arts shares ample similarity to the same self defense strategies used in short sales. Both require dedication, commitment and practice as well as mental stamina.
Take our quick short sales self-defense quiz to see where you rank:
Answer True or False to the following ten questions…
1. One of my major goals for investing is to have fun and challenge myself.
2. I have the confidence required to beat the market when others are taking a beating.
3. If I purchase a dozen properties then I have all the diversification needed.
4. I am able to control my returns by buying the right mix of properties.
5. Which properties I purchase are more important than how I finance them.
6. A percentage point or two doesn’t really matter in the long run.
7. I want to work with people and professionals I like even if it costs a little more.
8. I don’t know enough to manage my own money.
9. A good broker/agent/other will give me the inside scoop to buy or sell in time.
10. With the current market, a return above 10 percent is good.
Now let’s see how you rate. Hopefully you responded honestly (after all, you are only hurting your self). Give yourself 1 point for every “false” response above and subtract a point for each “true” response. It’s worthwhile to examine why each of the above should be a false response…
1. Although it is certainly nice to have fun and challenge your self with any investment, it is not a “major” goal. The major goal is to maximize returns. Save the fun and challenge for the gym.
2. Confidence is great but forget what the self-help guru’s tell you…it doesn’t replace an objective process that saves time while helping navigate the system. Results are what matter.
3. Maybe – but maybe not. Diversification isn’t just concerned with numbers but rather types of properties, geographical location, financing options and much more. There are more choices in real estate so learn to use them for your advantage.
4. You are able to control your returns by buying at the right price, obtaining the best rates, estimating repairs and keeping costs to a minimum. Don’t’ forget taxes!
5. No, financing matters…a lot. Know the limits to financing including maximum number of mortgages for each underwriter, LTV ratios used etc…
6. Yes, it matters. Remember, you can still make money but you could have made more. Learn to deal with the details to maximize profits and minimize losses. Over the long term, 1-2 percentage points can make or break a fortune.
7. It’s nice to work with people you like but it’s business…treat it like such. Find the most competent professionals you can afford to get the best results. Save the feel-good stuff for church and family night out.
8. Either learn or go gamble – gambling is more fun than investing and you will have the same outcome in the long run.
9. Sometimes but that is the cherry on top…don’t expect them to do your job. They are brokers or agents not investors. You are the investor so act like it.
10. Shesh. If you are willing to settle for 10 percent return then short sale may not be your ticket to wealth creation. Tune in to one of our free webinar to learn what real returns look like then stop settling for less.
