Tips for Buying a New Property | mumble in the jungle

Tips for Buying a New Property

property buying

Savvy investors are always hungry to expand their empire, but you don’t want to get into the habit of jumping at every opportunity that comes across your desk. You have to be smart about the properties you purchase because one bad investment could threaten your entire portfolio. Steven Taylor Taylor Equities is a landlord and developer with years of experience in the real estate industry in Southern California. Here are some top tips for real estate investors looking to buy a new property.

Look for Long Term Value Over a Quick Pay Day

Real estate is a tough business and those who are in it for a quick buck usually don’t last long. The key to being successful long term is to look at the bigger picture when it comes to purchasing a property. You may be able to make a lot of money buying a luxury property in an up and coming part of town and charging high rents to the new influx of trendy residents moving in. But if the property values are in a bubble and the neighborhood doesn’t transform as quickly as projected, you may be stuck with an overpriced building that doesn’t move as well in the long term.

Comparatively, a modestly priced home in a safe neighborhood with good schools may not bring in as much rent in the short term as the luxury condo. But it’s more likely to appreciate in the long term and maintain a steady influx of renters. That doesn’t mean there isn’t plenty of money to be made in luxury properties – but it’s important to consider the long-term viability of an investment, so you don’t get stuck with a money pit.

Crunch the Numbers Twice (or More)

Real estate is a numbers game and it’s important to check your math several times before committing to an investment. There is always something you may have overlooked that could impact the deal. It’s wise to have an accountant or business partner also go over the numbers with you to fill in any blind spots. There are often important expenses or income opportunities that you may not be aware of that will impact your return on investment. Although there is more than just math involved in finding a great real estate deal, it’s still important to make sure the numbers make sense.

Be Patient and Wait for the Right Deal 

Patience is a virtue, especially when it comes to real estate investing. At the beginning of your investing journey, it may be hard to find any viable deals. But as you become successful, you may be offered deals left and right. If you jump at every opportunity that comes your way, it’s inevitable that you’ll end up with a dud eventually. It’s not the end of the world if you can correct your mistake and get out before it’s too late. But for many people, one bad investment can threaten their entire portfolio, especially if they are forced into foreclosure. Think about investing like baseball – if you swing at every pitch you likely strikeout every time. You have to know what you’re looking for and wait for the right pitch to come your way.

These are the strategies that have helped real estate mavens like Steven Taylor Taylor Equities, achieve so much success in a fast-paced industry like real estate. Follow these simple tips and there is nothing you can’t achieve.