If you are struggling with your investment property search and it’s taking too long, then you are doing something wrong!
An investment property search is a very critical step to find real estate investments. At this stage, you either hit or miss. However, don’t let this throw you back as it does not have to be complicated for you to hit the goal. Most of the times, investors are the ones who are responsible for their failure as they might have done something wrong along the way that they’re not aware of. Therefore, if your investment property search is taking too long, chances are you are missing something critical.
As real estate experts, we get many questions related to real estate. The matter of investment property search is perhaps one of the most addressed topics on our platform. So, we’ve put together a list of possible mistakes a beginner investor might make along the way that will have a major impact on his/her choice of property.
Now, without further introduction, let’s get straight to our list!
#1. Your investment property search is taking too long because you don’t understand the business
Problem: Acquiring real estate education is the first step towards the business in general. It is also true when you are trying to find an investment property for the business. Therefore, if you are having trouble performing your investment property search, then you might not have the right real estate knowledge to do so in the first place.
Solution: The easiest solution is to acquire the real estate education you need. You can start by reading some real estate blogs including Mashvisor’s blog. Our platform is among the best when it comes to real estate investing for beginners. You can find all the information you need starting from how to invest in real estate all the way to the more complicated matters in the business.
Mashvisor focuses on all the issues that concern beginner real estate investors. Not only can you learn how to invest but also where to invest in real estate. The best locations, the best investing guides, and the best real estate education are a few clicks away. So, really, it leaves no excuses for you not to be able to perform a decent investment property search!
#2. Your investment property search is taking too long because you are faith-driven, not fact-driven
Problem: Oh boy! The one fatal mistake that gets a real estate investor stuck is being faith-driven! Listen, I understand that faith is the place from which a dream can be born. However, there is a spot in your dream that makes it real: facts! So, what happens when you only walk by faith and neglect facts? A financial disaster, of course. Unfortunately, that is the case with most aspiring real estate investors. Choosing an investment property just because it looks fancy or you like the view of the forest behind it is not enough of a reason to actually buy the property. Also, buying a property just because you believe it will produce an income somewhere in the future is not enough.
Solution: The simplest solution would be to perform two types of analyses: the investment property analysis and the comparative market analysis. The first is when you analyze the rental income, the cap rate and the CoC return which reflect the return on investment a property promises. The latter, however, is sort of a real estate market research. It focuses on the surrounding area (neighborhood analysis) and finds you real estate comparables to which you can compare your choice of investment property. Therefore, numbers are a vital aspect of your investment property search!
#3. Your investment property search is taking too long because you have limitations
Problem: Another mistake an investor can make is to only look at one location. In other words, you limit yourself to your location. You’ve got to understand that sometimes your choice of location is not profitable at all, thus, making it hard to do an investment property search and find a good deal.
Solution: Simply forget about the limitations you have. Often times, you eliminate locations that, in reality, might be the most profitable. So, consider performing a heatmap analysis using Mashvisor’s heatmap. It is the easiest way to look up a location and check the performance of the real estate market there. Besides, you can also use it to decide on the optimal rental strategy for your business.
#4. Your investment property search is taking too long because you don’t use technology
Problem: We all know the traditional ways of performing an investment property search. But, come on, are they that efficient in a time when technology has taken over every aspect of our lives?! So, if you are finding it hard to perform a sufficient investment property search, that might be the problem.
Solution: Of course, there is no problem without a solution and this case is no exception. In order to perform a decent investment property search, use the real estate investment tools that are available at your disposal. The investment property calculator is one tool that is very useful in this case. There is also the property finder tool that is a must-have at all times now. It is basically a very advanced tool that helps a real estate investor find investment properties based on their own criteria. The most amazing feature of this tool is that you don’t have to have a lot of data to start your search. Simply, have an idea about what you are looking for in an investment property. The property finder tool will take the rest from there.
Where do you find the best real estate investment tools?
Here is a little secret from us: Mashvisor is the place where you can get all the must-have real estate investment tools for your business. So, what are you waiting for? Start your free trial by signing up for Mashvisor. And while you are on it, check out our blog to learn all about real estate investing in no time!