Your Property Research Skills

Property acquisition requires a great deal of research before making that initial investment, especially for those who are green in the industry. There are many variables to consider, with a primary factor being the location and the developmental potential for the future.

Honing these skills is essential so you can eventually size up property upon visual inspection in a similar capacity to Yiannakis Polycarpou, an investor who has built himself an empire after gaining considerable insight into which properties represented a long-term investment success.

He is now known to spot these with minimal upfront research. Facts always get checked behind the scenes, though. What does someone without these skills need to do before reacting to a property? Let us look at the research that is involved.

How Should an Investor Research Before Purchasing a Property?

A novice investor cannot drive past a property and determine it is worthy of a phone call to determine its value for investing in the same way that leaders in the industry like Yiannakis Polycarpou can.

The average newcomer needs to engage in considerable research before taking a risk, whether for rental purposes or eventual sale. You need to look at the neighborhood, whether there is developmental potential for the future, and if the location is considered a prime spot. Read here for guidance on making money while investing in real estate properties.

Check out these steps for researching possible investments to see what you should be looking at with potential properties.

● Do not make assumptions

It is easy to presume the location for a building is similar to what it would be in any other town or city, but that’s a poor assumption. If you are unfamiliar with the area, it is essential to drive to the spot, do not invest blindly.

Driving throughout the neighborhood will help you determine the flow of traffic, highway access routes, if there is a town square, whether public transportation is available and what sort, if adequate shopping resources are situated throughout the area – where and how much, and medical facilities.

Plus, many other variables that tenants will be taking into consideration. If the area is unappealing to you, it will also be to a potential buyer or renter.

Your Property Research Skills

●Be a pedestrian

While driving through a town or city can give you an indication of traffic flow and locations of varied conveniences, it is wise to walk through the area as a pedestrian to learn how convenient these spots are for those local to the site.

Stroll through the stores, hospitals, gas stations, bus stops, and around the square, speak to the locals, the shopkeepers, and those in the restaurants to gain perspective on living and working in the area.

People are more than willing to share when you go into these establishments, especially for someone new considering a purchase. A definite stop is to city hall to inquire about development in the area.

When you learn there will be expected growth encouraging an increase in population and more businesses, that will speak to the future for the market and motivate a glance at the inventory in the area.

●Look at the price points for rentals

Those who seek rental income look at the potential with comparable options in the surrounding locations. A broker or realtor can assist with an analysis of the area.

Generally, investors will stand with a “1% rule” and adjust according to similar properties bringing rent in the same vicinity. Some might decrease theirs to a lower amount to remain competitive.

Others might bump theirs up to stir curiosity about the possible features that might be the reason for generating a higher price point.

Either situation is somewhat risky, but each can prove beneficial in its own right. If you can afford a lesser rent payment and still come out with returns, it pays to be competitive since good tenants remain loyal to a landlord who looks out for their best interest.

A higher rent will bring greater returns but will cause more work as the owner shows the tenants their worth the added expense to create the same kind of loyalty.

Final Thought

There is so much more that needs to be checked out before purchasing a property as an investor. A good broker can guide you with your research and do not forget to search for an investing mentor to teach you the ropes.

This person might not rank at the same talent level as Yiannakis Polycarpou, but they will prove invaluable as a resource for bouncing ideas and helping with research.