Prasad Anguluri, the founder and CEO of IIG, has discussed various investment tips and investing in different principles globally, to help the audience by sharing his experiences and knowledge to explore better opportunities, in a live show, IIG | Basic principles of real estate, that is aired on Mana radio at 9am pst /12 pm est/10:30 PM IST every Saturday.
Where to invest the money for better returns?
The basic requirement of any investor is to multiply their money and generate a passive income periodically.
Before discussing “how to invest”, let’s quickly understand how we do it. The first thing anyone does when they want to invest is consulting the elders in the family and some people even blindly invest accordingly. We at IIG believe an investor should always analyze the opportunity before investing, you may take inputs from everyone but you should verify before investing your hard-earned money.
“Trust but verify”
– Ronald Reagan
The investment methods and thinking would be different for each generation. For example, the people in their 20s or 30s would like to take a risk, while people in the 40s and 50s would like to secure their funds as they are going to retire. So, don’t just invest in any opportunity based on someone’s suggestion, verify before you invest.
If you are an NRI and are thinking of investing in Indian real estate, think about how you want to use your returns. Some people in India will not document the sale price, and it will be a huge problem while you sell the property and transfer those funds back to the USA. There are two issues here.
- All the NRIs don’t have certainty regarding their stay for several reasons – initially not getting a valid visa to stay longer, later job uncertainty and after some years children not showing interest. However, every individual having a little longing to come back and stay along with their family, relatives, and friends. As we discussed the other day – only a few people have clarity in whatever they do in their life. Having said all this, this uncertainty makes people invest in India especially in their native places where they have friends and families to take care of the assets. If they don’t return to India, it might be hard to find the right person to take care of their assets. However, IIG can help to manage assets globally.
- Many banks in the USA will not consider the assets in India and the earning you are making on them, this affects your credit score and investment potential.
What are the best ways to invest money other than real estate? Can we invest all our money in real estate?
Investing in one principle is never recommended, and one should diversify their funds.
At IIG we suggest that if you have a $100,000 you can invest up to 40% of the funds in real estate because the investment will grow with the time, but investing all 100% in real estate is also risky because the investor should have some emergency fund, like at least 10% of the funds should be held for emergency funds. 20% for short term investments, like fixed deposits, Simple Investment Plan, etc with a lesser lock-in period. Share is another best way to earn better returns but with more risk, so we recommend to invest 20% of your funds in wall st. or stocks but remember to analyze the financials before you invest. The modern and trending investment methods involve startups and it is highly risky because only two startups out of ten might be successful, so you can invest up to 10% of funds in startups. Try to diversify the funds and invest in multiple startups if possible.
You can also invest in yourself if you are interested in learning a skill towards your passion, you can add bills like education, travel, etc in the company expenses which can help you have tax benefits. No matter what your passion is you can find new people and form a network, and explore more opportunities.
But remember “No one is successful in the first attempt.”
Time is a big factor, many people are busy with work and family where they might not get enough time to analyze the investment opportunities, though people are interested to invest they might be confused to choosing an opportunity. At IIG our experts will analyze the opportunities thoroughly in all aspects before listing them on our website. However, if you are interested to invest in real estate, be sure that you have a positive cash flow from the opportunity.