Jason Hartman is here continue walking us through the 10 Commandments of Successful Real Estate Investing. In this video he introduces #4. He piggybacks off of #3 and crooks on Wall Street.
Thou Shalt Use Prudent Financial Planning Techniques
Clearly Wall Street has its issues, but this is something they do brilliantly.
Jason discusses the importance of considering your investment goals, time horizon and risk tolerance. First. consider the quotes below:
“Diversification perpetuates wealth and concentration creates wealth”
“Don't put all your eggs in one basket.”
“Put all your eggs in one basket, and watch that basket”
Depending on where you are in life and your risk tolerance, you will preserve, or concentrate. Neither approach is right or wrong, but both should be considered.
Jason goes on to say how with income property assets, we can have the best of both worlds…we can put all eggs in real estate, but diversify geographically.