It’s no secret that real estate is one of the essential pillars of investing and wealth. Doing it well and efficiently can also become more complex than some let on at first. Some of the most important elements to success only come with experience.
With this in mind, I hope you will check out my upcoming book The Timeless Principles Of Investing In Real Estate. You’ll find it invaluable no matter where you are on your financial journey.
One of the great quotes I recently stumbled upon regarding the secrets to successful investing is “ensuring you are betting on the right horse, in the right racecourse, with a good jockey.”
That was shared by Tom Glocer. He is the former CEO of massive news agency Reuters, and is also the managing partner of a family office and has raised $400M for his own startup venture.
Too often investors focus too much on finding the right horse (asset), and are derailed by failing to consider the other two well enough. Or they have tunnel vision on finding the right racecourse (strategy). Ultimately, they are hurting themselves by not considering other places to race, who their jockey is, or the individual horses they have in that race.
Focus On Your Money Manager First
It is very hard for most investors to get all of these elements right. Especially as a passive investor. It takes full time teams to keep track of these factors.
So, if there is one thing that you can do well, and should focus on above all others, it is your jockey. Your money manager.
It doesn’t matter how great the horse is if the course is bad. It doesn’t matter how great the horse and perfect the ground is if your jockey isn’t an experienced rider. It all comes down to the execution.
Focus on vetting your money manager. Nail this first, and you can trust them to choose the best horses and races to run.
Timing the markets is virtually impossible. So, what alternatives are there for streamlining decision making, and making sure you have strong horses in races you can win?
Diversification is a great start. Using multiple asset types in multiple strategies simultaneously, you can ensure that you have some strong winners. Any underperformers won’t be nearly so impactful.
Similar to this is dollar cost averaging. The commitment to continuously, and consistently investing. This will ensure you are never caught only buying in at the peak and holding the hot potato, or missing out the most valuable moments to invest.
Find out more about investing in secured debt and real estate, go to NNG Capital Fund