How to scrutinize real estate listings and make money every time you buy property?

Real estate listings are more like dating than most people realise. You need to play the field and not “marry” the first one to meet your criteria disregarding the selling price by the current owner. You must remember my rules: You are not going to live there, somebody else will and you need to get the best somebody by choosing the right investment at the right price. 

If you rush such a decision you will end up with a long and painful experience and selling will be like getting a very expensive divorce. 

Let’s leave the marriage metaphor for a second; I want you to keep this thought in your mind. 

• You need more than one real estate investment to become rich.
• All of them need to make you money and not take it from you all the time.
• You need to be able to afford ALL of them if you do not find a tenant or a buyer for about 5 months. 

When you are scrutinizing the real estate magazines, property classifieds and talking to people you need to filter out the things you do not want. 

• You do not want to buy an over-priced lemon.
• You do not want to be investing in the biggest house in that particular area.
• You do not want to be stuck with something you can’t get rid off. 

With that said we can continue the marriage metaphor. You need to make a list of all the qualities that you want to deal with in your chosen area. 

Do you want tenants that can afford to pay?

Do you want a house that you can sell if you are ready?

Do you want to buy to keep or to sell soon or later?

Can you afford the monthly mortgage if your tenant or buyer has a problem?

Are you insured adequately?

What is your plan B and plan C?

Can you execute your backup plans no matter what?

What do you want to do now that you are making money with your property?

How much do you want to invest initially and on an ongoing process? 

These are the questions that must be well answered before you touch a single real estate listing or classified ad. Do you think it is a lot of work? Yes it is but it’s cheaper than the alternative of owning a very expensive investment with more hidden costs than you can handle. 

But you haven’t answered my question on how do I make money every time when I buy my real estate investments? I hear you asking. 

The answer is staring you right in the face, BUY right first time and you will make money. Buying is where you make your money because it will increase your profit when you sell or when you rent it out simply because it costs you less. 

So before you go rushing off to page through the real estate listings in your chosen area bear in mind that your focus is to buy for somebody else and the bigger the crowd who will want it the more likely you will make money EVERY time.