Recently I did an analysis of all the people who I have helped buy Income Properties over the last couple of years in order to determine the common denominators that made them successful acquirers of Income Property. I have helped dozens of clients in this way, so I had a pretty good ‘sample size’ to work with. I thought the results might be of interest to you.
Here they are:
1. The person must have, regardless of how they came by it, a good certainty that Real Estate is an excellent investment, both in terms of immediate cash flow as well as future upside. This could either be a result of education, or observation, or both.
2. They must be willing to be persistent and understand that it can take some time and some sweat to find and ultimately procure the right property. (Conversely, they must also be willing to ‘hit a home run their first time up to bat,’ which does happen.)
3. The prospective buyer of Income Properties must have a clear idea of what their investment/financial objectives are and they ought to be realistic in their expectations. If they do not have a clear idea of this, then they must be willing to have a consultation with someone who knows their way around the subject (such as myself) so they can formulate a definite financial/investment objective. People who are bent on finding “a totally amazing, once in a lifetime deal,” as opposed to a sound investment property that gives good return and has good upside are seldom successful at acquiring an income property.
4. The successful Income Property buyer must be someone who is not afraid to ‘take a chance,’ and possibly even extend themselves a bit beyond their ‘comfort zone.’ Understand, this is not to be confused with ‘being reckless.’ However, a bit of courage is often required in order to have success at this game.
5. In playing the game of Income Property acquisition, one must be willing to ask questions and to satisfy themselves that they really understand all the different facets of Real Estate as they apply to what they are trying to do. It need not be overwhelming; there are only a finite number of things one needs to know.
And while this may sound self-serving, it is vitally important that you have a good Real Estate agent who knows his/her way around the subject. They will be there to assist and guide you at every step of the way. Still, that is not a reason for not having one’s own personal grasp of the subject and always being willing to ask questions, and read, and learn more about it.
I could probably further extend the list here, but the above are the fundamental attributes one must have. Virtually every single person I have worked with on acquiring income properties in the past few years would tell you they are very happy with the results if you asked them (and you can, by the way… I have all their contact info and they are only too happy to tell people about their successes in this line.)
I stand ready to help any and all of you to successfully follow in their footsteps.
Have a great and prosperous 2013 !
Ken Shapiro, Broker