Monday, August 18, 2008

Investing, By Definition, Is Not Risky

"If you look up "invest" in the dictionary, this is what you'll find:

Invest - To commit (money or capital) in order to gain a financial return.

Notice that the work "risk" does not appear anywhere in the definition. Why? Because risk is what people bring to the concept of investing. Not sounding like a Pollyanna, but the truth is that great investors don't think of investing as risky. For them it's not about ignoring risk. Instead, it's about following sound investment principles and models. By doing that, they take the risk out of the game.

Investing like a millionaire real estate investor isn't about taking risk. It is about sound criteria, the patience to find the right opportunity, and the willingness to take the correct action quickly. The best investors know this and are dedicated to following this formula. As a result, they are always minimizing their risk while maximizing their return. Investing can never be absolutely risk free, but it doesn't have to be risky.:"

(This is an excerpt from Gary Keller's book: "The Millionaire Real Estate Investor." Gary Keller is a self made millionaire and founder of Keller Williams Realty International.)

Nationwide Real Estate Investments has a model/formula that we follow: we only buy brand new construction at a certain price range that we know will generate a certain rent range. We prefer the neighborhoods to have HOA (homeowner association) fees, that the addresses in those neighborhoods are eligible for the best local schools and that no more than 10% of the homes in that neighborhood are rental properties. The local markets must possess the basic economic forces that will support strong job growth, population growth, and enjoy an emerging economy with favorable demographics. Our #1 rule - the area can not be saturated with investors!

No matter how great the temptation, by strictly adhering to these guidelines Nationwide Real Estate Investments has reduced your risk as a real estate investor as best we can. Remember the TV commercial with the gentleman stating "we don't process 50 million checks a year; we process 1 check 50 million times?" That is what we do for you. Our investors don't buy 500 homes a year, they buy 1 home 500 times.

Contact us to work with you in putting together your real estate investment portfolio. Remember, you can't win if you don't get in the game!"

Denton Ward - EzineArticles Expert Author

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