Selecting The Right Investment Property | Part 2
Last time we spoke about how to select the Right Investment Property. Where to look and what too look for.
This time we are going to dig into the nuts and bolts of getting your perfect investment property.
I want to help you, to guarantee that the property you finally select as your investment property, is exactly the type of property you want. In an area you know will have the most likely hood of being “Fully Let”, with your tenants helping you every week.
And most importantly, you want to pay a very good – no let’s say an excellent price for your investment property too.
This is a tall order I grant you.
That said, putting into practice all the essential components I have suggest for you in this series of articles will allow you the greatest opportunity, for your investment property to be a success.
Now comes the hard part. The Grind.
The Grind refers to the homework you are going to have to do to find the right investment property. There are very few ways around the grind if you really want to be successful in property investment.
The process I will describe, to help you select the right investment property has been used by savvy property investors for… a long time.
This is how people who make there living from property investment select their next property. And so should you.
Robert Kiyosaki, author of the Rich Dad Poor Dad series of books uses the method I will describe for you here. The bad news is there are no shortcuts to doing the Grind.
Once when asked “What advice do you have for average investors?”. Robert Kiyosaki answered. “Don’t be average”.
The Grind, in my opinion is the best way to select an investment property there is. And is not the way “average” investors select their investment properties. So let’s get to it.
How To Choose The Right Investment Property & Pay The Right Price Too
The Grind is nothing magical, and it is definitely not a short cut to property investment. It is just doing your property investment homework and doming it in a very systematic fashion. It is your due dilligence.
The first part of the process is what we spoke about last time (here’s the link if you havn’t seen it yet. – How Do I Select The Right Investment Property).
It is about finding an investment property that will be the most attractive, for the greatest number of people looking for somewhere to live. Be MacDonalds to the Starving crowd.
Once you know the criteria of what you want, and where you want your investment property to be. No, it does not have to be the house next door, or the one up the road.
Remember we are not going to live there, your tenants are.
Research One Hundred Properties
You will need to research one hundred potential investment properties in your chosen area(s). Yes, I said 100 properties – not about 100, not nearly 100. One Hundred properties that meet (or almost meet) your selection criteria.
Think of it this way. If you start cutting corners with the Grind process now, the chances of following through are much less, and your chances for success are back to… average. Now if you are up to some work to get this right please read on.
No one can do this for you as well as you can. Because no one cares about it as much as you… savvy?
To make it easier to analyse all the information you will collect on each of these properties, I recommend you use a very detailed property checklist to keep things system like. One checklist for each property that meets your specific selection criteria.
It is important here not to fall into the trap of what “looks nice”. If you are shopping for a good used station wagon, a Ferrari “Looks nice” too, but it is not what you are looking for…
You will use your property selection checklist to help compare properties. This will be even more important once you have reviewed and documented your first 20 or thirty homes. It is impossible to remember so much really vital info without some type of system to work with. It get s easier as you get better at it and it will take less and less time too,
