What You Should Do Before You Buy

When it comes to finding a property to invest in, you don’t want a “good deal,” you want a deal that’s good for YOU.

A lot of new investors say they’re looking for a good deal. But that could mean different things for different people. There are simply too many opportunities and deals, no one has time to sort through them all. As a new investor, getting crystal clear on what a good deal means for you will make all the difference in the success of your search.

Here’s what I do to help me niche down on what I want to buy:

1. Put Together a Deal Summary

I make a list with deal specifics that I’m looking for. For example, I may be looking for roadside hotels and motels that are 50-125 rooms. They could be Ma and Pa operated or a specific brand like Days Inn, Travel Lodge, Roadway Inn, etc. I list out these bullet points so I can later email them to a broker.

2. Consider the Location

Apart from deciding on the market, you need to determine other key location elements. For example, you may be looking for a property that is within 3 hours’ driving distance of a metropolitan statistical area. Knowing this will narrow your search.

3. Good Bones

As a new investor, in particular, I would clarify that you’re only looking for a cosmetic fixer. Doing a bunch of structural work wastes a lot of money that you’re not going to necessarily get in return. This will impact property pricing and is important to specify in your search.

By thinking through these details, you can hone in your search. It’s also really helpful for brokers. When you say “I want a good deal” that’s not specific enough. The more detailed you can be about your deal specifics, the more likely it is that someone can find you the deal you actually want.