An absentee investor is an investor who takes passive participation in the property or business that he is involved in but gains his profits just like any investor does. This can be a profitable career if approached properly and conservatively. Here are some tips on how to be an absentee investor.
- Primarily, before deciding which absentee investment you want to get involved with, appraise your capacity to invest. Review your assets and liabilities. If you are still paying for a mortgage and other debts, get done with them first. Take out the part for your basic needs and examine how much of your budget is left. Can that part afford an investment? If not, try to think of saving it first until you can gather enough. While waiting for the right time, avoid unnecessary expenditures and debts. It is not wise to start an investment while you are still paying for debts.
- Search for absentee investment opportunities that fit your resources. Real estate offers a widespread of opportunity in your locality. In addition, franchises and retail stores are also good candidates for absentee investment. You can choose from the variety of these opportunities on the Internet, classified ads, or franchise magazines. Then weed out from the numerous lists the ones that do not show reliability. This stage requires time and patience, as you cannot just throw the money that you have worked hard for just for fraud.
- Identify which absentee investment will give you a good profit even without active participation. Check for the integrity of the investments offered in the ads and read between the fine prints. Correspond with the contact persons and request for the details about the business. You should have at least an eye view of how the business is run. It will be helpful if you can find testimonies from knowledgeable parties or constituents about the business. Do not carelessly give your trust to total strangers who refuse to give the information you need but promise you fortune. Be keen and wise.
- Close a deal. After cautiously deciding which absentee investment you will put your finances on, procure a purchase agreement and contract. Make sure that you carefully read the content and that your questions are properly answered before signing. Find someone who can help you with this process such as a lawyer or loan officer who has expertise on the matter.
- Finally, make sure that you harvest what you have sowed at the right time. Be realistic and do not expect beyond what you are suppose to get. It will be sensible if you divide the profit into piles according to your priorities. Provide a part for a long term investment such as for the expansion of a business or enterprise.
Learning how to be an absentee investor is a huge leap to secure your family’s future. This is the ultimate goal of a family man to be able to provide the needs of the family while having the time to spend with them.