Is your investing strategy ready to handle the speed of the Millennial Economy? Joseph Controy explains in this article the steps to prepare your investments for this fast-paced economy. He recommends that you review your portfolio regularly, take steps to control your risk, and build a team to help achieve your investing goals. Below are Joseph's recommendations and how to apply them to your real estate investments:
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Review Your Portfolio
You need to review your portfolio to see if there are any investments that are susceptible to market changes. Are your current investments in areas that have sustained population growth, diverse economics, and steady rents? If not, you may need to consider exit strategies so that you can invest in asset classes and markets that will offer more favorable returns.
Control Your Risk
Remember investments are not guarantees. There is a probability that you may lose money on any investment. With each investment you must get comfortable with this risk. To increase your comfort in an investment, stress-test the operator's underwriting to see if it will generate returns in an economic downturn. If the investment can weather a storm, you will be more confident in your strategy. You can also gain confidence in your investment by asking the operator questions on how they are mitigating market and economic risks associated with the investment.
Build a Team
Building a trusted network of specialists will allow you to be able to quickly access knowledge, build deal flow, and analyze potential opportunities as they are presented to you. With this access to knowledge and deals, you will be able to execute an investment confidently. You can build relationships with specialists by attending local real estate meetups, being active on real estate forums such as BiggerPockets, and attending real estate conferences.
If you need help reviewing your portfolio, have questions about your risk tolerance, or need help building your team of specialists, contact us here and we would be happy to help!