1. What is your overall investment strategy?
An investment strategy is a plan developed to accomplish specific investment objectives. It ties into an overall goal for developing personal net worth. It relates to the amount of discretionary income one needs to maintain a certain lifestyle. A good investment strategy will assess how much capital is available to invest and the types of investments, i.e., stocks, bonds, real estate, mutual funds, needed to accomplish those investment objectives. An investment strategy also determines how much capital is allocated to each type of investment.
Written By Ken Holman, NAREA Group
2. Do you want to hold the property long-term or short-term?
3. Are you more interested in cash flow or appreciation?
4. What type of real estate property do you focus on and where do you want it to be located?
5. Do you own other commercial properties?
6. Do you have other property you want to sell or trade to purchase the new property?
7. What are your management skills and temperament and do you want to personally manage the property?
8. How much equity capital do you have to invest?
9. How much debt can you qualify for and are you comfortable personally
guaranteeing a loan?
10. How is your personal credit worthiness and credit score?
11. Where is your investment capital coming from?
12. What is your expected return on investment?