Finding an Investment Property
A Blueprint
Okay, you’ve decided to make the move and jump feet first into the real estate investor pool. Where are the properties? Don’t those people on T.V. always seem to find the perfect home, fix it up and rent it or sell it in the course of a 30-minute program? It looks easy on T.V. but even though you’ve decided that it’s time to invest and secure your future you now need to find your prospects. How do you start on your journey? We agree you need a game plan so we created a blueprint for finding an investment property.
1. Refer to Your Goals
and Strategy
2. Select a Location
3. Know Where to Look
4. Select and Execute Your Search Tactics
This should provide some guidance on what to buy and where to start looking. You may have something like this:
- Shrewd: Highest retuning cash-on-cash income property anywhere (oink!)
- Low risk in this location: Low risk condo by the ocean
- Cash flowing near family: Multi family in Virginia
If you don’t have a specific plan, don’t worry. Focus on defining a market to start searching and look for the right returning opportunity.
Your strategy may define a location, if it doesn’t then refer to your market selection criteria. Make sure you use consistent criteria to select the right market for your goals. You will find it helpful to consider such factors as:
- Following redevelopment and big infrastructure spending
- Neighborhoods with favorable rent-to-purchase price ratios
- Looking for stable employment
- Trying to find those unique blocks and pockets of opportunity
- Discovering lifestyle attractions
Next lesson is 10 Tips to Select a Location
You can find real estate in multiple places. You need to understand the pros, cons and secrets to some of your options before you define your search tactics. Your search options will include considering one or more of the following:
- Knowledge of states with foreclosures still pending
- Internet listing resources like MLS
- Auctions
- REO’s
- Public records of pending defaults or foreclosures
- Turnkey providers
HINT: Don’t worry we cover these in more detail in the next lesson: Knowing Where to Look
Create a list of tactics you will use including:
- Online Search
- Networking and Relationships
- Free Advertising
- Beating the Streets
- Ugly Duck Hunting
- Hustling
SUMMARY
- Refer to your goals
- Get educated on where to look
- Select a location
- Know the states where foreclosures are still pending
- Select 2-5 search tactics
