How to Look at Property Like an Investor

[Kevin Davidson]

How to look at your property like an investor is not always easy. You need to always treat your property like a business. I can say this because an investor myself who’s owned both Single and Multi-Family properties over the years I have probably made every mistake you can think of to make. If I can help other people not fall into the same pitfalls I did then this will be well worth my time to write.

First thing is to never let your emotions dictate the deal. Don’t fall in love with the house or the investment. The numbers will make it a good deal and dictate whether it’s something you do or don’t want to buy depending on what your business model is. Sometimes investors will want to buy a house on the same street that they live on thinking the proximity will allow them to keep a close eye on it. So very wrong, go where go the deal is not where you wish it to be.

Smart investors will have a team that they can use to help them make smart decisions. I always find it interesting that when an investor is looking for a home they will use a professional like a real estate agent to help locate it, For money they use a bank or hard money lender and for closing they use a title company. But when it comes to actually running the property to get the financial return back out of it. This is the point that they feel they should do on their own. Most of the time without any formal education or training on laws or regulations. I know because I was one of those people at first. I did not understand the power of having a team and utilizing leverage. Leverage that team so you can buy properties in another parts of town, where the best deal is. Don’t buy an investment property only to have a second job. That’s not investing, it’s a surefire way to failure. Just remember the real estate investor is the highest sued in the industry.

Whether you have one property or 50 properties, you own a business. Treat it that way. Be professional, and always write and follow strict policies and procedures. If you don’t have a business plan in place, create one or partner with a property management company team that can help you be successful with your property. You need a plan for where you want to go and how you want to get there.