BiggerPockets

Information is the Key

Tuesday, January 06

I would say that information is the most valuable asset in the world today! With information, the proper decisions can be made, both in life, in finances, and even in love. Point being is that you MUST have adequate information to be financially successful.

So how do you get information? Well, there are many different sources and avenues. Keep in mind that I am talking about legal information techniques only and I do not suggest one to violate any Federal, State, Local, or SEC laws or regulations.

Education is step one. Learning the ins and outs of a particular investment strategy, learning how to read financial statements, and the ability to properly perform due diligence are just a few of many examples.

Once you have the proper education in place, step two is to apply that education in the field. Utilize your new found knowledge in the area of your investment strategy.

Step three is knowing how to get inside information (for lack of a better term). Again, I am not referring to illegal insider trading laws, but legal avenues ONLY. This is accomplished in several different ways as well. One is to build relationships with other who are "in the know" in the area of your goal. For instance, if you were concentrating your investment business in REO's, it would be most helpful to have a "friend" who was in charge of that department inside a particular bank. Just the same, it would be most beneficial to have information from a "friend" who was developing a start-up company and was just about to take it public. That would be a great time to invest in that company.

While the examples I listed above may sound generic or even unlikely, they are for the purpose of explaining the benefits of information. Take Warren Buffet for example. He is by far, the most successful and highly respected investor of our time. Do you think he is the type to throw darts at a board when picking companies to invest in? Absolutely not! Unfortunately for the general public and even their investment brokers & managers, that is exactly what is happening, not literally speaking of course. Most people are guessing and that is what I call "risky". Risk = lack of control and risk also = lack of information. By having both control and information, you will be in the driver's seat for success!

Comments

1. James Miller Reply
   about 3 years ago

   Good article.

   Information can make or break any deal.

   By knowing multiple buying and exit strategies you can do deals that others are passing up.

   I think that the best way to learn is to start doing deals. Set yourself up with minimal risk by going in with a strong partner, getting good advice from an attorney, and talking to a mentor.

   James
   http://www.realestategozone.com/
   http://realestategozone.wordpress.com/

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