Hi Salena Kulkarni here. And in today’s video I just talk about this idea of how much profit or how much wealth is enough out of one investment.
So I work with a lot of clients who occasionally say to me look silly, I’m interested in going out and trying to source the property where I can make a chunk of cash up front. So those deals are hard to come by but some people have very strong views on how much risk they’re prepared to take and how much profit they want to earn as a result of that. Now with today’s market, it’s getting harder and harder to find opportunities where you can create profit upfront. But what I would say to you is it’s really important to go into it with an open mind and be talking to someone who’s had some experience in the space so that you’ve got a reference point for what is and is not a good deal.
For me personally, to go out and get in involved in any kind of project whether it’s a renovation
or development, anything where money making $30,000 to $40,000, it’s a lot risk to take on to small amount of money, depending on how you’re going to go about the structuring that deal also determine
Now for me in general, if I’m going to take on a reasonable amount risk to create money $30,000 to $40,000 probably is not enough, on the other hand, if it is a very low risk, straight forward deal it is very evident that the market is very stable and you going to make that money with a high percentage of certainty then maybe that would something to consider
Now what I wanted to say is that when you starting to look at more sophisticated strategy, it is really important to have a perimeter of what is reasonable, and the only you are going to do that is by talking investors who had similar experiences to understand whether or not that opportunity would stack up
So when it comes to deciding how much profit in a deal talk to people who you know and really do your research before you commit, there are a lot examples of deals that I came across over the last 3 or 4, 5 years where there was an opportunity for client to make $80,000 $70,000 $150,000 and people have passed on to that opportunity because they did not think deeply enough profit
What I was saying is every deal is unique and it is all about weighing up the pros and cons
Hope you find this useful and I look forward to connecting with you in the future.