Making a good solid “first property selection” can easily spell the difference between establishing a strong permanent launching pad for your investment career or creating a deep financial hole that will quickly bury you. Your dreams of wealth can soon fizzle out and die if you purchase properties that cost you more than they’ll ever be worth, Buying the right property is the first step…and it’s extremely important because it’s usually make or break for new investors. What I tell you next will provide valuable information on how to buy your first properties right and what to look for before you sign the deal.
It’s important to purchase properties from sellers who really and truly need to sell…not from sellers who wish to sell. That little three letter word may make a very big difference. The seller you must find will have a strong motivation to sell; it can be one of many different reasons, however I’ve found the most common of these to be financial problems, management distress, divorce and job transfers or moving. It’s not uncommon to find all these problems going on at the same time,
I don’t overcomplicated getting started. Getting started ranks higher than finding the best deal in town when you’re starting out. Don’t look forever trying to find a “blue ribbon” property. When you first start, chances are you’ll stumble over some good deals without even realizing they are! The point I’m making here is most of us don’t really know enough when we first start out to distinguish a real bargain from a “Grade B” dirty deal. That’s poultry jargon from my old chicken ranch days. The best approach in the beginning is to SPECIALIZE in whatever type of property you decide works. The best for you. I recommend the older fix-up types because profits come so much faster than with the nicer looking units. The reason is – you can quickly add value to rundown properties.