The Secret to Finding the Perfect Property
In the latest “solocast” episode of the Fueling Deals podcast, I discuss the steps I use in my own work, as both an investor and real estate advisor to my clients, to find the right property in the right location.
Between the sometimes overwhelming number of potential leads at your disposal and the wide variety of price ranges, features, locations and property types to consider, it can be challenging to find a property that fits all of your investment criteria and that can make you money no matter if it’s a fix-and-flip or a rental.
On this episode of Real Estate Investing for Professional Men and Women, I go through each of my twelve essential steps and show you the exact process I use to narrow down an intimidating list of a hundred or more leads to the perfect property.
Getting Started the Right Way
The first step is to determine what assets you have available to you, what your goals are, and what type of deal (fix-and-flip, rental, etc.) will best fit your strategy. Once you have an idea of what you want and what you have, now you can begin looking at properties that match. What I do can generate a hundred different properties in your area that satisfy your needs.
Once you have a list of leads, one of the most important things you can do to minimize headaches is to follow steps in the correct and most efficient order. Why go out looking at a hundred properties in person, when you won’t be buying 99 of those properties? Instead, use the process of elimination to remove as many properties from your list of leads as possible before you ever set eyes on these homes. First, you’ll look at the numbers and eliminate any property that isn’t at or below market value for the neighborhood. Streamlining your list by eliminating any property not favorably priced will knock out a huge chunk of your list of leads, and that’s the goal.
Once you have a more manageable list of leads, now you’ll start comparing each of those homes to similar homes in the neighborhood. If all the comps in the neighborhood have a driveway, eliminate any lead that doesn’t. Your goal is to streamline down your list to the most homogenous properties. Only after you’ve done this will you physically drive to and view the remaining properties.
Remember, at each step your goal is to knock out more houses until you have a list of finalists, almost like a reality TV competition. By continuously paring down your list of leads, eventually the cream of the crop will rise to the top, and that will determine which property you should make an offer on. I hope you find this strategy helpful, and if you’d like to learn more about my methods and take a deeper dive into the twelve steps I use, please listen to the podcast episode.
Want to hear more? Listen to this podcast here.