11 Steps That Make Finding The Right Property Investment Opportunity Easier

Investment property opportunities come along now and then and most investors would put in more research than when finding the right property for family living. Investors all have different property investment strategies, but if they do not have a plan in place for purchasing they could well miss an opportunity by not being ready to purchase.

Therefore there usually are more considerations to take into account, especially as regards the profit you will make from a property investment when it is going to be added to your property portfolio.

The fact is there are many property investment opportunities on the market at any one time, but whether they are suitable to add to your portfolio or not is the question? If good property investment strategies are not in place these property investment opportunities could be here and gone before you are organized to purchase.

These 11 steps will make the process of buying an investment property for immediate rental easier and give it more chance of producing the return that is expected.

1. Assess the equity available to put into an investment property.

2. Discuss your situation with a good mortgage broker and find out what monies can be borrowed, which will then give a property price range within which to work.

3. Go back to the business plan and get the criteria for purchasing - the size, transport, how many bathrooms, garages, construction, yard etc and also location details as regards schools, transport and so on.

4. Do your research to see where you can find a property with your criteria and with the money you have available - at this stage there may need to be an adjustment as you may need to buy in another area than you first intended and that should be OK as long as you do your homework on the real estate in that area.

5. Make a shortlist of areas in which to buy and contact some agents.

6. Make a short list of properties to look at that fit within your criteria.

7. Once you have looked at the properties, make an even shorter list from which to buy.

8. Use online calculators or a property investment program to ensure that you will make the required money from the property of interest and check again it fits your criteria.

9. Make an offer and go to contract (don't forget to use the right buying entity on the contract) and cover yourself with clauses regarding finance and building inspection so that you have an out should you need it

10. Complete all your inspections for pests and so on and get a valuation if needs be.

11. Confirm that all your requirements have been met, finance approved and go to settlement.

Strictly speaking the steps outlined here are pretty standard when purchasing an investment property. Each time you purchase a property you will find that steps 1 and 2 will need to be done and step 3 should be part of the property business plan.

Investors find having a plan makes it easier and quicker to find properties.

If an investor has a set plan to follow when purchasing property it does actually save a lot of time as particular property prices will be more familiar and it is easier to compare one property with another. It means that you are not trying to compare a 3 bedroom townhouse against a 4 bedroom house or 1 bathroom against 3 bathrooms. You can see what I mean here. Each different style of property falls within a certain price range and it is easier and safer to be able to compare one with another comparable one, rather than something quite different.

When a systematic criteria for purchasing is used it will make finding the right property investment opportunity so much easier and you will not have the need to keep changing your property investment strategies.


Copyright (c) 2010 Kaye Dennan