Buying the right property isn’t easy because the right property will depend on your goals and the systems you’ve put in place to maximize your income. The right property for you might not be best for someone else. When investing in properties, you’re going to know that not every deal is a property worth having. You’re going to pay more for a property that is tenant-ready and a deal on a property that needs a lot of work means you’re going to put your resources into making that property ready for tenants. In the long run, it might not be worth the investment.
Often when a new investor is in the first flushes of learning about property investment, analysis, due diligence and the prospects of retiring early through property investment, they will be pretty keen to find a deal. They will jump onto property portals daily, network with possible sourcing agents, walk the streets (if local), scour the emails and forums and be addicted to waiting for the phone to beep or ring for any hint of a deal that they think would be a good deal.
But often deals do not turn up straight away. It takes dedication, commitment and a willingness to forego the attachment to a deal and instead turn it into a purely business decision. Desperation breeds a certain kind of reckless abandonment and folly which then leads to making rash decisions which then come back to bite you later on.
On the face of it, getting hold of a 25% discount on a property sounds like a steal. But sometimes, things are too good to be true and sometimes you want to walk away. Not every deal is a property you want to add into your portfolio. So, don’t rush into a deal. A deal will come up every day or every week or every month depending on your area.
So, the next time you are wanting to satisfy your itch for a deal; remember to ask yourself the question. Does this deal take me nearer or farther away from the goals I set myself when I started my investment portfolio?