Putting Your Strategies Into Action
Your strategies can only yield results when you put them into action. Now that you think like an investor, have understood the fundamentals of property investing, got your team together, and have defined your strategies, it is time to get you real results.
Getting results can only be achieved by applying your strategies and acquiring your first, or your next property. You need to understand how to buy and sell property and that there are different ways how you can acquire property other than just buying from a seller or developer.
There are many different ways you can find properties. Since we aim to make money when we buy, we need to put some extra efforts and tap on sources that might not be immediately apparent. The key elements you must remember are the importance of having sourcing agents on your team and the ability to find distressed sellers or properties.
Building a good relationship with a few good sourcing agents can help you tremendously. Of course there are still the traditional methods of checking with the regular estate agents, newspapers and online property portals. Perhaps you could even engage somebody to systematically screen those for you on a regular basis in order to save you some precious time. Also making friends with ‘nosy neighbours’ who know everything and everybody in the area might help.
You could attract sellers by creating your own website or distribute flyers in the area that you focus on, with an offer to buy property in order. Last but not least, there are also many property auctions.
Before You Buy
Before you commit to buy the property that you have selected, there are a number of things you should take into consideration:
- Don’t get excited – keep your emotions in check
- Does it fit your strategy?
- Did you do your due diligence?
- Have you done your macro and micro analysis?
- Is the timing right for that area or market segment?
- Is your source reliable and reputable?
- Is the price right?
- Do you make money when you buy?
- Have you done your deal analysis and calculations?
- Is the condition of the property as described?
- Legal and tax considerations
Some developers might offer rental guarantees, buy-back guarantees, or both. Sounds good? Well, it might be a good thing as it reduces your risk. You need to be aware though, that in many cases you are paying for this by a higher purchase price, so essentially, you might be paying for the guarantee yourself. Assess the purchase price compared to similar investments that don’t have a guarantee as well as the reputation of the developer.
The Property Apprentice Master, Jochen Siepmann, wants to share the wealth of his knowledge easily and effortlessly with you for FREE. Start your journey now to greater wealth through passive real estate income and capital appreciation with one, or all, of these FREE offers: