Always Read...Gain Your Knowledge Before You Make an Investment

I just found this article and my opinion, it's a good reading material for everyone before they start any investment. For me, everything you want to do the key of success is "Knowledge". So, let's enjoy your reading.....

All sorts of people have all sorts of advice how to make money. Some of it is good, and some of it is bad.

How do you sort out the difference?

No One Right Answer, but…

Obviously, having experience will help you sift through the bad opportunities to find the good ones, but even seasoned pros make mistakes. Just take a look at how many people that are old enough that they should be retiring, but they cannot.

There are several things that you can do, but one of the biggest things is to stick to investing in areas that you know.

Often, it’s tempting to jump into other waters. You hear many people talk about the next newest “hot thing.” They make it seem so exciting, and it is—until they lose their shirt.

I’m not saying that everyone will lose their shirt, but often more people will than will not.

Check out the dot com stocks of the late 1990’s and early 2000’s. They were trading for absurd amounts. The problem was that the prices kept getting even higher. Was there no end? If I don’t get it now, I’ll miss my chance.

That’s right! You’ll miss your chance—to lose BIG TIME. By the time YOU are hearing about it, everyone else has, too.

Except…

When you know your area, you generally know well before anything gets reported. This makes sense, because it is YOUR expertise. It is a lot harder for you to overlook something when you’re fluent in it.

Let’s tie this into Real Estate

There are many awesome opportunities for great investment deals on Detroit properties. However, there are a lot of areas that offer more trouble than it’s worth. Unless you know the area, how can you know?
In fact, there are a lot of investors in different parts of the country and outside of it. Many of these investors see the numbers and become enamored with making great passive investment opportunities. They should, because there are a lot of great chances here.
However, if you do not know the area, you can make a bad mistake really quickly. You buy a property that really is burnt to the ground or it should be. Perhaps, you buy a beautiful looking home in an area that nobody wants to live.
If you don’t know an area, you need to find someone who does and is willing to help you. Then you can make a more educated decision, and that is your BEST protection against making a bad investment.

 by: Chris Wechner