Put Pen and Paper Together and Make a Plan
Your first goal should be to determine what exactly you are setting out to accomplish. Then put together a plan for executing your strategy and achieving your goals. Writing down your investment strategy helps to properly formulate your thoughts and clearly establish your goals. It’s also important to include your investment criteria (time for return on capital, ROI, your investment amount) as well.
Determine What’s Available in the Area
Get with a broker or brokerage firm and determine what properties are available in your area that meet your investment criteria. There are also multiple online listing sites that can provide you with promising leads. Once you’ve made a list, determine which properties are in-line with your plan. Which properties meet your ideal profit margin? If your plan and the investment match, the next step is to control the property.
Control the Property While You Make a Decision
Controlling the property involves using a lawyer to gain exclusive rights to purchase the property for a limited time. This will usually cost you lawyer fees and a concession to the seller, but if you’re serious in buying their property it’s important to gain control of the property while you consider all the factors of your investment. Once you’ve been granted control you will need to ensure your capital is readily available. If all right and good then it’s time to pull the trigger.
Create a Method for Tracking Variance and Progress
It’s important to reflect on your investment strategies and your original projections. Is your current profit margin meeting, exceeding, or coming-up-short of your original projections? Whatever the answer, consider changes that can be made to improve. Always learn from your mistakes and take that knowledge with you into your next investment opportunity.