When it comes to your investment portfolio, most people think this is something you do alone, on your own time and don't really talk to others about. This is not necessarily the wisest way to go about things.
If you think of the major investors who have made millions and made a name for themselves in the investment world, you may notice that they are not just people who put their money on the line, but also people who talk to anyone and everyone in their field, trying to get a pulse on what is coming and what may happen next in the industry.
The main reason you want to make sure to build up an investing network is to make sure you know what is coming (or about to go away) in your industry. One change in the real estate market in on sector often will translate to changes in all of the other nearby sectors, which in the long run can have a major impact on all of your investments. The sooner you see something coming, the sooner you can react and possibly save yourself a loss or set your self up to make a great profit.
So where do you find this network of people? Here are a few options:
If you are investing in stocks, bonds, REITs or any of the other Wall Street offerings, you may be best to start your network of knowledge with the brokerage. Many brokerages not only allow you to do your buying and selling, but they also amass information relating to your industry to give you cutting edge information you need to make wise investing decisions. How easy this is to access will depend on what kind of brokerage you use. If you use a general-purpose brokerage, it may not be as simple as if you use a brokerage that is specialized in your industry. REITBuyer.com is the first and only online brokerage that specializes in REITs and real estate mutual funds.
Another place to network for information is in investing groups. There are always groups of like-minded investors who are getting together to talk about their industry and plan for their future. When choosing this type of networking, make sure to act carefully on the information you get. Sometimes people will make comments about investments in hopes that you will buy something they want to sell and increase the price. Others are speculating with no supporting information. It is best that any information you glean from this type of networking you back up with your own research.
Real Estate Industry
Who knows more about what is happening in real estate than those who are on the front lines in the industry. From landlord associations to real estate agents and others who have a role in the operation of the industry you are investing in, they will often see the signs of things to come before anyone else. Having this type of people in your network will help you also get that earlier view of what may be coming down the pike.
This article was written by Earl E. Bird, spokes person for the REITbuyer.com, a site dedicated to educating Real Estate Investors on how to invest in Real Estate Mutual Funds to diversify their investing portfolio. Read more about REITs at http://communitieshomes.blogspot.com