How to Find the Best Investments

Difficulty: Moderately Easy

Instructions

Things You'll Need:

A desire to be involved in your investment portfolio.

Step 1

The first step in finding the best investments for your "investment personality" is to do a self-assessment. For example:

* What is your tolerance for risk?
* How involved do you want to be in your investment portfolio decisions?
* Are you willing to consider investment alternatives that you aren't currently familiar with?

To help you with this, I have supplied a link in the "Resources" section below titled "Investment Personality Calculator". This link will ask you questions and then calculate where you fall on a scale ranging from Conservative to Aggressive.

In addition, I have supplied a link titled: "7-Step Investment Planning"
Step 2

The next thing to help determine the best investments for you is to consider your goals. Start with the big picture.

* How far away are you from retirement?
* What lifestyle do you want to lead for the rest of your life?
* Where?
* How big of a nest egg do I want for financial security: emergencies, inflation, family assistance, etc?

And so on....
Step 3

Then, ask yourself if you can afford it. Also, how confident are you that your investment portfolio will support your goals?

To assist you with this, I have supplied a link in the "Resources" section below titled "Retirement Calculator".

This is going to do 2 things:
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1) Help determine how much money you'll need to achieve the goals you established in Step 1 above.

2) After comparing how much money you'll need versus how much money you have (or expect to have) in your investment portfolio, you will know whether or not there is a financial gap between those two amounts.

If there is a gap (and for the majority, there usually is), then you have 2 choices:
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A) You can revise your goals more conservatively (less expensively).

B) Take a hard look at your investment portfolio and make some changes.

Assuming that you will choose B) above, ask yourself: "What are the best investments that I can add to my portfolio to accomplish my goals?"
Step 4

So how do you find the best investments for your situation based upon:

* Your investment personality?
* The financial gap between your goals and what your current portfolio can provide?

To answer this & find the best investments we need to look at history:
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It is widely held that real estate, in its various forms, has created more wealth than any other type of investment. Many folks today cringe when they think of investing in real estate because of the recent sub-prime debacle and rampant foreclosures. Meanwhile, many of these same people continue to hold on to their stocks that have declined 40-50% in value!

Unlike stocks, which can become worthless, real estate always will retain a certain amount of intrinsic value.

So ask yourself this question: "Is this a real estate buyer's market or a seller's market?" That's right! Definitely a buyer's market. Property values have declined significantly in virtually all real estate forms (raw land, land development, residential, commercial, etc.) As a result, seller's are willing to entertain most offers.

This presents an extraordinary opportunity for investors with:
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* Money to invest
* Knowledge of how and where to invest

Now, back to history: savvy investors understand that economies are "cyclical". Eventually, recoveries follow recessions. Real estate values and stocks will rebound.

Now the $10,000 Question is: "Where should you invest your hard-earned dollars to help you close the gap in your portfolio?"

My money says REAL ESTATE!
Step 5

As noted in Step 4, I believe the best investments today and in the future will continue to be Real Estate.

In the short-term, I believe that investments in "distressed properties" (foreclosure properties and REO bank-owned properties) are the best investments today.

Most people reading this will say: "I'm no real estate expert and never will be, so foreclosure property investments aren't for me." Now, the great news is that you don't have to be! Read on.....

As foreclosures have become an enormous industry, exciting new companies have emerged to take advantage of this extraordinary wealth-building opportunity. These new firms are called: "REO Companies".

REO Companies buy foreclosure properties in large quantities from the banks and other lenders. They rehab these homes to "move-in" condition then resell them quickly and at a profit for their investors. And the returns on investment can be staggering!

Recall from Step 3 above we said you had two options if you have a financial gap between your goals and what your current portfolio can provide. And, we assumed that you would choose to reevaluate your investments and make some changes versus choosing to live a less expensive lifestyle.

My recommendation is that you consider investing in foreclosures & REO properties in some way. Either on your own or by investing with a professional REO Company. Personally, I choose to invest with an REO Company and leverage their expertise as a "silent partner".

To help you with this, I have supplied a link in the Resources section below titled "Understanding Foreclosures". This links to the press release for a book titled "The LazyMan's Guide to Understanding Foreclosures & REO Property Investment". If you are at all interested in real estate, give this a read!
Step 6

The best investments for the mid-to-long term (3+ years out), in this author's opinion are:

* Commercial real estate investing
* Raw land development

Once again, you may feel at first blush, that this is outside of your comfort zone or expertise. But my response is - it needs to be! If your current portfolio isn't going to achieve your goals, you need to consider alternatives that can!

As with investing in foreclosures and REO bank-owned properties, you don't need to be an expert. Similar to REO companies, you can invest with professional developers in both commercial real estate and raw land developments, letting the experts do what they do and share in the profits as a silent partner. (Passive income!)

We've already said that Real Estate has created more wealth than any other investment type. Furthermore, the 3 "forms" of real estate that I have recommended are the most profitable and overall best investments in the real estate industry:

* Distressed properties (foreclosures & REO bank-owned properties)
* Commercial real estate development
* Raw land development

In the "Resources" section below, I have provided a link titled "Real Estate Investing" for additional information on these investments.
Step 7

Contact me

Finally, if you would like recommendations on how and where to invest in these "best investments", contact me - it's FREE advice! Just click on the link below in the "Resources" section titled "Author's Website" and fill out my contact form with any questions you make have.