Smart Investors Plan for Success
Steps to Successful Investing–Planning Overview
Success in any activity requires education, training, desire and application. To coordinate these skills requires planning. A financial plan is the road map showing the way to financial independence.
Applying the Steps to Promissory and Mortgage Notes
Focus on one investing area to become comfortable, confident and successful; being a jack-of-all-trades and master of none not the goal. This article focuses on promissory and mortgage note investing.
Start the process by defining and understanding your present financial situation. Determine what financial assets and capabilities you now have; determine your level of financial literacy; determine the time available to devote to the investing process. In summary, understand where you now are financially, what you plan to accomplish, and how you plan to do it. Put the plan in writing.
“I now am age 30, want to retire at age 65 without any debts; will use promissory and mortgage notes as my investing vehicles; now have $20,000.00 available for investing and hope to add $10,000 annually; will spend ten hours per week learning the note investing business; will work with experienced advisors as I implement my long-term investing plan.
This example covers the person’s current investable funds, current and future employment income, current and future cost of living, health, and family size. All of these are factored into the long-range investment retirement plan.
Force yourself to deal in specifics-specific income dollars, specific time-frames, specific living expense dollars, etc. Do not “wing it” and rush through this exercise.
Implementing your promissory and mortgage note investment plan starts after you have laid a solid planning foundation. Assume, as an example, your investments will be made in a Self-Directed IRA Account; assume you want to invest in mortgage notes secured by real estate in your State. Based on these assumptions, let’s now consider the investing planning decisions you should make.
Numerous specific decisions are required. After deciding, write the decisions and add them to your investing plan. Decide:
• How much of my investment capital should I invest in any one note?
• What duration mortgage should I invest in?
• How will I find mortgage notes?
• How will I determine the quality of the note?
• Who will administer and service the notes?
• Who will make decisions to handle problems that arise?
Get experienced, specialized guidance to answer the questions above, and to do the first few investments. Don’t be a solo pioneer; benefit from professional help.
With good guidance, you will not be required to “reinvent the wheel” all by yourself. Having a seasoned promissory note specialist on your team to help the process along, and will allow these decisions to be handled smoothly. An experienced promissory note investor and advisor can smooth the way.
To be a successful promissory and mortgage note investor good planning is necessary. Tailor the plan to your individual capabilities, needs and goals. Don’t try to “reinvent the wheel”; it has already been invented. Benefit from the mistakes that others have already made, don’t repeat them. You can and should have an expert help you avoid common mistakes.
There’s no “smart money,” only smart people; money goes where they go
Lawrence (Larry) Tepper specializes in the valuation and appraisal of promissory and mortgage notes, and other cash-flow financial instruments nationally. Nation-wide services for banks, trust companies, self-directed IRA accounts, estates, attorneys, CPAs, and individual investors.
Consulting Services-Free Appraisal Price Quotes
EDUCATION AND TRAINING
Law Degree /Accounting Minor University of Denver
Managing Colorado Real Estate Broker– Promissory Notes Specialization
Certified Commercial Investment Member from the National Assoc. Realtors (CCIM)