Focus Your Real Estate Investment Search
“I am in real estate” is possibly one of the most interesting yet amorphous conversation starters today because there are so many facets of the business. There are geographic markets, asset classes, job functions, and over 60% of Americans own real estate. So there are a lot of opinions about the best real estate investment strategy, and technology has made it very easy to view available properties at any time. In the world of investment real estate, where there are myriad options to consider, it can be difficult and overwhelming to make a decision. We believe it is really important to define a narrow search in order to identify the best opportunities.
Consider the following examples:
- One investor talks to a variety of agents and has them send available listings daily. These opportunities vary by neighborhood, property type, and condition so the investor sees a lot of deals. However, the investor will need to understand the value of various areas, assess the various financing options available given the condition and property type, and have the resources to spend a considerable amount of time sifting through deals and finding new sources. While there is nothing wrong with an opportunistic search, a lot of time can be spent on deals that are not a good fit or even a good value.
- A recent client of ours said, “I want to buy property, where is the best place to invest?” We asked the client to take a step back and think about her investment goals. Once this client had taken some time to consider their goals and risk tolerance the client was able to feel confident in that the property she wanted to buy was a good fit given her investment goals.
Both investors might benefit from a focused property search. At Root Realty we help our clients focus their real estate investment search so that they can evaluate opportunities on an apples to apples basis and make a decision when the right deal presents itself.
We ask our clients to take a step back and walk through an exercise with us.
Here are the steps to a focused property search:
After completing this exercise with our investors, we are able to develop a framework to focus their investment strategy. We listen to our investors and help them choose a strategy that is aligned with their goals so that they can target their search to properties that fit their investment strategy and make investment decisions they feel good about.
Sound interesting? Let’s talk.