Defining Investment Criteria
Just finished reading 'The Millionaire Real Estate Investor' by Jay Papasan. One of the key points mentioned here and many other real estate books is to have a well defined criteria for your investments.
I tried setting a criteria in the past but it didn't work out. I always question my own criteria and think if I should invest on north side where the market is stable but prices are high with less inventory or should i go West/south where there are a lot of low priced properties but many risks as well.
Should I look for single family homes or small multi family units since I can finance both of them with conventional loan ?
Or Should i just continue looking everywhere for properties for motivated sellers and just confirm that the numbers work fine. I have bought properties in the past without a definite criteria but this book makes sense and I would like to have a well defined criteria so that I can focus well.
Therefore, I need help in understanding how can I determine my criteria when i don't have 4-5 years of experience in this market.
Does it make sense ?
Most Popular Reply
Hey Abhijeet, I too have struggled (still struggle) with this as I continue to close in on my first deal. Without pressing on and learning from experience, idk if we can truly "define a criteria" for ourselves. With that said, we have to try - so I've sort of pieced together bits and pieces from experienced investors I've met in person, podcasts, books, forums, information I've heard/seen get brought up multiple times, etc. and tailored it to my style/what I believe will lead to success (for me).
I've attached a screen shot of what I'm currenlty targeting, but treating it like a diet/workout plan... I'm going to continue to monitor my progress and make adjustments as I see fit until one day I've nailed it down. Hope this helps in some way.