What is the secret to property investment?
The strategies behind investing in real estate and the secret to making money really do not mean anything unless you have set goals that match your strategy! The secret to property investment is goal setting and building a strategy to match.
When I used to sell houses for KB Homes in Florida, I used to touch EVERYTHING when walking a prospective buyer through a home. Touch, and make them touch, make them envision living there- where would they put their couch? Where is the playroom for the kids? These kinds of techniques help emit emotion in the buyer. That is the biggest mistake when buying homes! Keep emotion out of investment property purchases. You are investing for a profit, not for your family home. It is a business. Treat it like one.
Here are a few golden rules to follow to ensure success and wealth from any kind of property investment you choose. See below:
- Buy with an upside to growth: What does this mean? If you choose to purchase in an area that is already primed for growth, you may avoid waiting 10+ years for your investment to start making you money. Real estate is a “safe investment” as the market will always return, however, when investing, it is better to see growth as soon as you can. Find an area that is primed for growth. Do your research.
- Purchase Below Market Value: This way, you walk in the door with cash already in hand. If the market drops after you purchase, you have a built-in safety net. And! Equity! You will start off with equity. You can potentially take that equity from the house and use it to purchase more investment property. No brainer!
- Buy With A Good Cash Flow: Your idea of a “good cash flow” and someone else’s may be drastically different depending on your individual goals for your portfolio. If you have enough cash to sustain the holding costs of your portfolio and the ability to purchase more properties, you’re in good shape!
Have you recently purchased investment property?
If you have recently purchased investment property in or near Central Oregon, please visit our site and call the appropriate office for assistance. We are happy to answer any questions we can about managing your property. PLUS Property Management has been in the area since 2003. We pride ourselves on the local market knowledge our staff possesses. We look forward to hearing from you! CLICK HERE to navigate to our contact page.