5 Tips to Consider When Buying Investment Property
These tips will help you succeed and make money from your property investments.
1. Do your research.
If you are buying a property in the hope of becoming a landlord then make sure you
have checked the areas rental potential and make sure the types of properties that you
are planning on buying are the ones in demand by tenants. If you are planning on
flipping the property, make sure you buy a property that is wanted by homebuyers.
(i have been a landlord for 20 years....if you need advice, email me at
2. Don't' blindly trust what anyone says.
This includes so called experts. Talk to a few different property professionals to try and
get a balanced view on things such as:
· What type of property to invest in
· What location
· What type of tenant to aim for
Sometimes it is only after canvassing lots of different opinions that you can really
formulate you own strategy with confidence and with solid reasons why you plan to
do what you plan to do.
3. Get for comparables for everything.
Rental comparables, sales comparables - everything you can. Make sure your
comparables are as much like for like as possible. For example: if you want to rent out
a two bedroom flat next to a railway station, then try to get the rental comparison of
other two bedroom flats next to the same railway station.
If you use a two bedroom flat that is ½ a mile away from the railway station, then your
comparisons maybe way off. ½ a mile can be a long distance if it takes you from the
desirable part of town to the rough drug dealing part.
(get your comps from the Zweben Group www.zwebengroup.com)
4. Get your finances in place.
This is a good thing to do even before you start looking for properties to buy. If your
finances are sorte
d out before you start looking at how to buy investment property,
then you will be more likely to be looking with confidence and purpose because you
know if you find that bargain property you have the finances already in place to do the
But if you don't have your finances in order there might be doubts in your mind about
whether you can finance a deal even if you find it, this in turn may cause you to self
sabotage any deal you see even before you put an offer in.
5. Employ the right professionals.
Whether that means builders, solicitors, contractors, or someone else, skimping on
employing qualified people to do a job correctly can cost you a lot more money than
you expect. Just because someone is cheap, doesn't mean they can do a good job and
just because someone seems expensive doesn't mean that they can do a better job
than someone who is cheaper.
(we only deal with pros.....if you need advice, call me 212.769.9807)