Living in Orange County, residential lots for small contractors are extremely hard to come by.
The same is true for commercial land with the coveted “LOCATION! LOCATION! LOCATION!” characteristics.
That means we have to get out and, as we call it having come from a more rural area, beat the bushes to find opportunities that may not be obvious, or properties for sale that aren’t listed, etc. In fact, we recently closed on a parcel like that, and it has a beautiful view of the ocean.
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
Don’t Be Afraid To Go Out Of Your Car
In real estate, when looking at property the number one rule? Get out of your car! Now of course if you’re in an unsafe neighborhood, this won’t apply.
Pain May Be Involved
Many times agents and/or investors will drive around and ‘look’ at properties, but never stop, get out of the car, and really inspect a property.
We came from northern California where rather than a small lot, there could be acres of land. Oftentimes we’ve found some true gems. One such parcel was a 12 acre piece, infested with thick Star Thistle growing knee high, acres of it, OUCH! The property had been listed for quite some time.
Most agents when going to see the property, would drive right on past, even though the property adjoined a 9 hole golf course. If you’re not familiar with star thistle, it has a way of getting into your shoes, sticking through your socks, your pants, etc. It hurts! We knew about the thistle, and went ready to view the property, having on jeans and our boots. We climbed through the barbed wire fence, and tromped through the stickery thistle to the back of the long rectangular parcel.
There was a beautiful view of majestic Mt. Lassen from the back of the lot, where a house could be situated, a year round creek with a sandy beach on the western boundary, and a 9 hole golf course adjoined the property on the south. It turned out to be one of the most unique residential properties in the entire county. Had we just driven by, we never would never have found the gem! We bought the land, built a big beautiful house, and sold it.
Nothing Takes The Place Of Seeing For Yourself
I’m often asked by new real estate investors where to start. Besides the obvious of knowing your niche, and your market, I’d advise that you always get out of your car, go into the house or building, walk the property, etc. because sometimes, you have to wade through the thistle to get to the gems.
Photo Credit: westpark