Flowing from planning are order and control. With these you can manage your time and money properly. Without order and control you can lose all your spare time (and even some of your work time) attempting to manage projects, money and people. You can also go broke, unless you have buyers or renters for your properties.
Marriage and personal problems are only exacerbated under financial pressure. Many larger decisions must be made when investing and this process can expose underlying insecurities and belief systems that need resolving as soon as possible.
What will other people feel about you once your achieve your goals? – Will they change their negative attitudes? Many people experience a strange phenomenon when they leave the rat-race and become financially free, others often assume that you are wealthy, some will even become difficult to deal with because of this. When you are doing well some friends may expect you to pay for everything, family members can become jealous and cause friction.
Using the example above, if you have a 0,000 loan on a property valued at 0,000, you are 80%25 geared. This means you own 20%25 of the property, and your lender owns 80%25.
One problem that many real estate investors face is lack of liquidity. Liquid assets are those that can be easily converted into cash. This is similar to stocks and bonds. Most real estate investments can take years before you can actually make a profit. So it is not the best decision to tie up all of your assets in real estate investments. Your financial situation will be an indicator as to how much you can wisely invest in properties and real estate.
Roger’s secret weapon was that he didn’t care whether he purchased the property or not. In fact when property investing he never gets emotionally involved. He told me he’ll make an offer on a property, not caring whether he owns the real estate. This is a secret weapon of many accomplished property investors-thought at times it can be difficult to put in practice.
Know your long term goals before investing. This is not a get rich quick method of asset appreciation. Most liens will only come due once a year. So if you are looking for short term make money fast action this is probably not it. But to compensate for the time factor involved, you’ll be blessed to gain 16%25 and more on your investment capital.