How to Become a Successful Real Estate Investor?

Real estate investing is one of the options for the investment. The critical aspect of this type of investment is to determine the individual who is willing to take the time and learn the business. Real estate investing does not necessary require large sums of money, inside contacts, or a magic touch. All that is really necessary is knowledge and skills.

Tips and Secrets for Real Estate Investing were written in many books and articles with the aspiring real estate entrepreneur in mind. But it is more important for us to select the books or an articles which is designed to provide us with a no-nonsense approach to real estate investing.


In addition, it is crucial that we have the ability to make decisions based on our knowledge and skills. It is sounds simple, but for some people, decision making is a difficult task. There may be times that we must make difficult decisions. If we are unable to do so, then maybe this isn’t the investment opportunity for us.

There are several traits in a person that can make investing easier. For example, it is helpful if we are organised, computer savvy, and a people person. But none of these things are required of us.Therefore, our first step toward successful real estate investing should begin by studying the book, articles, sharing knowledge and others.

The more we know and the better we understand the real estate market, the more likely we are to be successful in it. So, what does it take to become a successful real estate investor? Knowledge and the ability to make decisions, it is as simple as that.

Information as an Important Commodity

In an era of digital economy, information is recognised as one of the more important commodity. Its role in contributing to the economy of a country can not be taken lightly anymore. The quality of information obtained depends on the resources of the data.

However it is very essential for us to distinguish between information, data, knowledge, and wisdom. Normally data comes through research and collection. From that it has to be organised properly in order to create useful information.  Information must be processed accordingly based on the requirement of the stakeholders in order create useful knowledge.

Knowledge is built upon information must be continuously discussed and challenged in order to transform it to wisdom. Wisdom is the situation whereby somebody which already recognised as an expert in the respective field knows what to do with the knowledge. He or she knows how to synthesize the knowledge and make it useful to the community, organisation and humankind.

It is time in Malaysia, a professional in the field of information management plays an important role in the management of information as a commodity. This is important because the information provided should be timely, accurate, credible and reliable. Only in this way only, it will contribute and added value to the organization and the community.

Tsunami Hits Individual Investment Portfolio

Many investors began to worry after the disaster in Japan yesterday 11 March 2011.Most of Asian markets, which were lower throughout the day on concerns of political unrest in the Middle East, reacted to Japan’s 8.9 magnitude earthquake in the last hours of trading, accelerating losses(TheStarOnline,11 March 2011).It is causing many investors suffered losses on their investments in the equity market.

This is because part of the long-term investors got the news a bit late on the catastrophic events that occurred in one of the world's major economies.Every investors should monitor the situation so that any decisions made would be a positive impact on their investment.

Thus, the fundamental factors and market sentiment need to be taken into account in any decision made ​​at present.

Where I Am Going To Invest My Money In Stocks Market For 2011?

After several years investing in the stocks market, I believed that there are no special rules or theories that can guarantee us to make money. It may depend on your right judgments, timing and the most importantly is our investment objectives and also our lucks.

The stocks market can be viewed as the situation that we are fishing. Our fishing rod must be appropriate, our strategy and timing must be right in order to get a desired outcome. The conservative opinion normally is saying that we must look for the fundamental when dealing with our investment at stocks market, but sometimes we must understand that, normally that majority of the investors are more interested for high price volatility and liquidity of shares in the market. From that, they can apply the rule, buy at low price and sell at higher in order to achieve their required returns.

If I have extra money, I will focus on Oil & Gas as well as Telecommunications Stocks in 2011 in Bursa Malaysia. However, so far I don’t (Due to Lack of personal funds), but I am intend to do so.

Why Oil and Gas?

Commodities like crude oil are tied directly to Malaysia economy’s performance, due to Malaysia already become oil producer. Some of the players in the industry may benefited from the recent increase of oil price and the recent findings of new oil and gas fields by Petroliam Nasional Bhd (PETRONAS) offshore Sarawak are expected to boost the country's reserves.

A source quoted that Malaysia currently has 106 marginal oil fields containing 580 million barrels of oil and Petronas planned to develop 25% of the total marginal oil fields to replenish its oil reserves and generate new revenue streams.

Why Telecommunication?

Telecommunication industry is experiencing huge growth as more people use more of its services, whether mobile services or fixed. I may consider buying some stock from telecommunications companies because they currently offer great dividends payout. In Malaysia, among the telecommunication companies that pay quite attractive dividends are like TM, Maxis, DiGi while Axiata is believed to start paying dividends this year. But, however, I cant afford to invest in DiGi due to the price per share is more than RM 20 per share already.

Why Don’t Plantation Companies?

I am not favorable for this stocks due to the majority of this stocks, the share price are already high. Better to find out the stocks which affordable for me to invest but can give some capital gains or dividends.

The comments above do not represent a recommendation to buy or sell.

My Favorite Investment Platform

The stock market actually is my favorite investment platform. However to success in investments requires knowledge about values and stocks in which one is investing as well as the risks that those values carry. Investment opportunities are very broad and the abundant information that exists in the internet may help us get more knowledge about those investment opportunities.

Normally the simple guiding principle to invest in stock market is very simple which is buying at low price and sell when the price is higher. However, I believed the majority of investor knows when to buy, but having difficulties, when to sell? It just because we start feel greedy, and we normally tend to forget about our investment objectives such as for example to get at least 15% return from every contract purchased from every stock. From structured investment strategy, we tend to move on the speculative mode.

Speculative is whereby, putting money in a place in which opportunities to get a very high financial return through a determined period of time are just minimum. I am in the opinion that investing and speculating are not the same; where, speculating is more related to gambling in which odds are against the individual that decides to invest. In speculative investment perspective, the risk of loosing in future contract investments area extremely high. People just rely on tips that can be obtained from fiends, rumors whereas investing is referring to the situation that people rely to the credible information to execute the investment strategy.

However for my personal investment philosophy, I will try to adapt some processes or tips:

1.   Get additional knowledge and become educated about the investment. Analyse and understand about stocks and the market, take a seminar or class on investing and review online financial sites.

2.   Develop financial goals and objectives and formulate the stock-picking strategy.

3.   Do a research for each individual stock by reading annual reports, quarterly reports and other documents on file with the Securities and Exchange Commission. For muslim, they may want to ensure that the stocks compliance with Syariah panel committee.

4.   Invest in what I know. Be considering the stocks of local companies that I am more familiar and in which I have confidence.

5.   Check out the holdings of some successful fund management companies. If they are winning with particular stocks, perhaps I will follow too. For example Employee Provident Fund, Mutual-Fund etc.

6.   Diversify. Avoid putting my money in just one or two stocks or, for that matter, in one or two industries.

7.   Use a discount brokerage to buy stocks.

8.   Buy stocks that I feel comfortable holding for two to four years. Resist the temptation to dump a stock the moment its price drops a few percentage points. Give it a chance to perform.