3 Characteristics of a Savvy Investor

Clear Goals - They have very clear goals for their investments

  • Time Frame: A Savvy investor has run the numbers and they have a timeframe for how long they are going to hold a property based on the next two goals
  • Expectations: They have a realistic approach to the future appreciation and those expectations will typically be based off of logic and data. They are not trying to hit a home run each time they step to the plate. Instead their plan includes a lot of times at the place and a continuous flow of base hits. 
  • Performance: Ask a great investor what type of performance they are looking for and they tell you EXACTLY what works for them. They have this down to a science, because if the performance works, the expectations work and their timeframe for owning or flipping is met. 

Logic Based - They are logic based and unattached

  • The Property fits the Plan, not vice-versa: Experienced investors create a plan that is profitable and then find a property path will fit the plan. Novice investors put a plan together that is based more on the type of property they think they want they try to create a solid investment plan for a bad investment property. 
  • Know Good investment was bought right: They understand that holding a bad investment does not make it a good investment. If a property is good at the beginning it will perform well and be profitable when its sold. A property purchased wrong will always be wrong. 

Old School - They use old school investor requirements

  • Make decisions on the Now vs The Potential: In past markets, investors lost site of the current performance and made decisions to buy based on the potential for future appreciation. For a period of time, it worked. 
  • Plans for the DOWN vs hoping for the UP: Now, a buyer/investor buys a property that makes sense today, plans for and is ok if there is a downtown in value, cash flow, etc.. In the future and does not include potential appreciation in their strategies. If it happens, its simply a BONUS. 
  • Has Exit strategy B and C for flips: When FLIPPING properties a novice buys, improves, and tries to sell. If any of the variables that are typically out of the buyers hands change, the flip doesn't happen and there is significant risk to the buyer in owning that property. Savvy investor swill buy properties to flip, with a 2nd and 3rd strategy if the flip doesn't work. 

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