--- title: 4 Essential Questions to Help you Establish Your Investment Philosophy description: RE investors know they need to re-evaluate their strategy regularly. Keeping consistent outlook on where you want to be and how to get there key. image: https://www.trustdeedcapital.com/hs-fs/hub/115318/file-2609662491.jpg --- [![Trust Deed Capital](https://www.trustdeedcapital.com/hs-fs/file-16494019-png/images/trust-deed-capital-logo.png "Trust Deed Capital")](https://www.trustdeedcapital.com/) CALL 1 (888) 563-5588 Search ![Hard Money Lender Investors](https://www.trustdeedcapital.com/hs-fs/images/blog.png) ## [4 Essential Questions to Help you Establish Your Investment Philosophy](https://www.trustdeedcapital.com/blog/4-essential-questions-to-help-you-establish-your-investment-philosophy) Posted by [Ken Meyer](https://www.trustdeedcapital.com/blog/author/ken-meyer) on Tue, Mar 17, 2015 - [Tweet](https://twitter.com/share) [![real estate investment philosophy](https://www.trustdeedcapital.com/hs-fs/hub/115318/file-2609662491.jpg "real estate investment philosophy")Successful real estate investors](https://www.trustdeedcapital.com/blog/bid/135517/4-Qualities-Successful-Real-Estate-Investors-Must-Have) know that they need to re-evaluate their strategy regularly. That strategy, however, is founded in a solidly constructed investment philosophy. Knowing what you need to do to withstand the ups and downs of the market is key. Keeping a reasoned and consistent outlook on where you want to be and how best to get there is the substance of that philosophy. # Have You Established Your Personal Asset Safety Net? Any type of investment or business venture can leave you in personal dire straits if you have not set your contingency plan. Having a buffer or safety net means being able to handle sharp downturns in the market without losing everything, including personal assets. No property that *appears* perfect should entice you to risk it all. # Are You Investing In Consistent Positive Cash Flow Properties? Choosing a property based solely on a hot seller's market can be a liquid capital error if the market drops while you are mid-rehab. What seemed like a simple in and out flip then sits on the market for months with no return. Consider targeting properties that will create a positive cash flow regardless of the market trend. Pick up a variety of properties that will show a good rental return if they don't sell immediately. This keeps your capital from being tied up and inaccessible. # Are You Diversified Enough? Have you considered properties that do not necessarily need rehab? Not to resale, but strictly as a holding. Even industrial or retail spaces can constitute part of your overall investment philosophy. Good, solid locations with ready to occupy facilities are excellent long-term decisions. Choosing to hold a multi-unit rental has a similar stable 'blue chip' kind of investment potential. Don't dismiss the potentials. # Have You Planned For Action In Upswings? Watching the market is good. Accurately forecasting an upswing is better. Having constructed your plan of action, to take advantage of a positive trend without costly delays is best. Even if you didn't predict the specific market swell, being able to move into it with expedience puts you strategically ahead. Your philosophy on acceptable risk and return should inform your strategy overall. This includes determining when capital outlay should include mortgage options. Examining 5, 10, and 15-year plans based on your philosophy allows you to evaluate the strength of it going forward. Consulting with key players in your business strategy, from [property agents/managers](https://www.trustdeedcapital.com/blog/bid/144472/Building-a-Network-for-Investing-in-Real-Estate) to construction to financial, regularly creates the proactive flexibility essential to market advantage. Please [contact us](https://www.trustdeedcapital.com/contact-us-confirm) regarding integrating financial options. 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