Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Does this fit my criteria?
Yes - buy it.
No - drop it and move on.
There is no 1 thing that is most important. What is most important is developing a target property and sticking to it, ignoring everything else no matter how good the marketing is. That's not always easy to do. I get tempted a lot.
Real Estate Investor · Cincinnati, OH · Member since 2009 · 93 posts · 26 votes
16y
Christie,
It depends. What I tell my students is they need to develop a real estate strategic plan that outlines their goals, strategies, resources and capabilities. No two investors are alike and a good deal for one is not necessarily a good deal for another.
Why?
AN investment is only good relative to your goals. If your goal is passive income, buying a property that has a lot of equity but produces no income is not a good investment for you. Right now for me...I buy and sell houses for the capital gains and I buy and keep apartment buildings for the passive income. My criteria for determining what's a good house to buy and sell are obviously not the same as to what apartment buildings I am interested in.
If you want, let's connect. I have acquired over $13 Million worth of investment properties and I can help guide you. For a beginner, it's easy to get enamored by the different investing strategies out there and the temptation to jump from one niche to the next is pretty high specially if you have not developed your real estate strategic plan.
It really depends on what my exit strategy is. If I am looking to wholesale the property, my main focus is having an investor ready to step in. If it is a ling term hold, then my main consideration would be cash flow. Anytime I do a rehab and want to retail, my repair costs would be my main concern.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Originally posted by Trace Trajano:
Christie,
It depends. What I tell my students is they need to develop a real estate strategic plan that outlines their goals, strategies, resources and capabilities. No two investors are alike and a good deal for one is not necessarily a good deal for another.
Why?
AN investment is only good relative to your goals. If your goal is passive income, buying a property that has a lot of equity but produces no income is not a good investment for you. Right now for me...I buy and sell houses for the capital gains and I buy and keep apartment buildings for the passive income. My criteria for determining what's a good house to buy and sell are obviously not the same as to what apartment buildings I am interested in.
If you want, let's connect. I have acquired over $13 Million worth of investment properties and I can help guide you. For a beginner, it's easy to get enamored by the different investing strategies out there and the temptation to jump from one niche to the next is pretty high specially if you have not developed your real estate strategic plan.
Hi, Trace, I really don't see anything in the question where she was asking for a mentor or coach, maybe she already has 26 Million in net worth and is writing a book and just wanted our opinions. We generally don't end our comments with a pitch to provide a service or an entire answer that supports the need for personal analysis to secure assistance.
To answer the question, IMO, it's price/condition in relation to the market. If the price is right it does not matter what your plans are because if your initial strategy fails for any reason, then you will have other strategies to follow through with.
Many times when I acquired a property I had no idea when I got up that day that I would be attempting to buy a property! I never got up saying my goal today is to buy a house. My goal was usually go make some money, if a situation comes where you see opportunity, simply take advantage of what is presented to you. So from that, as far as acquiring any property, price rocks! Bill
Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
16y
Does this fit my criteria?
Yes - buy it.
No - drop it and move on.
There is no 1 thing that is most important. What is most important is developing a target property and sticking to it, ignoring everything else no matter how good the marketing is. That's not always easy to do. I get tempted a lot.
My big consideration is how much value can I add to the property.
I have a whole list of criteria that I use to buy, but the bottom line is how much more could it be worth than what I am paying for it, and how much work would that take.
Residential Real Estate Broker · Rancho Cordova, CA · Member since 2010 · 1 post · 0 votes
16y
I'm with Tim, know your strategy, stick to it, walk away if it doesn't fit.
Personally, flipping distressed properties, offering 65% of market value. If I get it great! If not, secondary testing for profit margins or wholesaling, counter if it makes sense. If not, move on to the next opportunity.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
16y
Hi, I must respectfully disagree Tim. Saying that one should only persue an investment if it fits the mold of a strategy is like horse pulling a wagon with blinders on with a stick and a carrot. He'll never see the field of carrots as he passes by. The biggest problems I see for real estate investors is buying guru books, "learning" some method and going down the road with blinders on. Which brings me back to my point on price, if the property is held at the right price, any stategy will work. In real estate, any property can be profitable at the right price, even if it vacant land that has been used to dump PCBs! The key is knowing how to profit from what ever comes along....IMO. Bill
Wholesaler · Colorado Springs, CO · Member since 2009 · 286 posts · 255 votes
16y
Bill makes an excellent point here. A while back I stopped thinking of myself as a real estate investor but rather a transaction engineer. I have always said that great deals aren't found, they are made. I have purchased houses where 3 or 4 other investors passed because they were working with the "blinders on" as Bill says. Challenge yourself to look deeper, harder, and outside the box......there's a lot more to see.