I read a very good article with the above title. New investors in Income Property might be interested in reading the article. I enjoyed it.
Some quotes from the article:
"Three key words are necessary to increase the probabilities in your favor: (1) knowledge, (2) time, and (3) focus. Those real estate investors who don't have those three characteristics are discovering that not everyone makes money; you can lose money."
"How do you know if the price is right? Because that's what the seller wants? Obviously not. Because the broker said so? Of course not. The price will be closer to being correct when you have (supported by outside expertise where necessary):
- Completed an intensive study of the area (macro and micro).
- Analyzed the income and expenses.
- Evaluated the physical structure.
- Determined if the amenities support the lessee profile.
- Identified all potential liabilities.
- Decided on an offer based on values in place (not projections) that achieve an above average ROI. "
"Those plans are: (1) the business plan, (2) the marketing plan, and (3) the budget. These three plans provide the basis to tell what you plan to do with the business, how you will attract clients, and what the financial requirements are. "
If you are new to income property investment, I encourage you to take a moment to read the article. It will give you some things to think about if you aren't already thinking about them.
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