Lexus Group Consultancy in Tokyo, Japan Nine Tips for Creating a Smart Investment Strategy | Page 2

excellent choices for most investors. In the real estate game, consider flipping one home and with the
profit, buying two rental properties.
6. Invest consistently. It can be scary to keep investing when the real estate market is falling, but the
down years are actually the best times to buy. When the market falls, every dollar you invest buys more
property, and that can make a huge difference when the market eventually recovers. Remember, this is
a long-term game; don't be swayed by short-term fluctuations.
7. Do not be a micromanager. Micromanaging your real estate investments will do nothing but
increase your stress level, so avoid daily checks of your account balance. It is important to review your
passive investments once or twice a year, but micromanaging your accounts will get you nowhere.
8. Be smart about taxes. When you make money on your investments, Uncle Sam will want a cut, but
there are things you can do to reduce the pain. Keeping your real estate investments in self-directed
retirement accounts, which are taxed when you take the money out, is one smart way to reduce your tax
bill and keep your investments growing.
9. Ramp up your savings. Getting started is often the hardest part of investing, but once you are
started, it is just as important to ramp things up. If you are currently investing 6% of your earnings into
your real estate investing strategy, make it 7% next year and 8% the year after that. This escalation can
give you the discipline you need to ramp up the savings over time, and that will be good news for your
portfolio.
Developing a smart investment strategy will not happen by accident, but if you work hard and consistently, it
will happen over time. The tips listed above can help you get started, and as your comfort level rises, you can up
the ante and invest even more.