In search of the perfect property offer

One of the most detrimental limitations a beginning investor faces when building a property portfolio is the dreaded perfect deal.

As if trying to find a property wasn’t enough, the budding investor now has to find the perfect financing, the perfect lawyer, the perfect area, the perfect rental, the perfect growth prospects, the perfect builder, the perfect sales consultant. , the perfect club, the perfect interest rate: everything has to be nothing less than PERFECT.

So how do they achieve this? In short, you just don’t, and despite everyone’s best intentions, you won’t.

I have been in ownership in one form or another for over 9 years. I have yet to find the elusive perfect deal. However, I have consistently made money from property and have built a substantial portfolio of properties, even though every property that is part of this portfolio is imperfect in some way.

So what is the motto? Be realistic but practical. Do your due diligence using the various guidelines I’ve suggested for buying, holding, and selling property, but don’t use them as an excuse to procrastinate.

My simple 3 month rule applies in these circumstances. It simply says:

You have 3 months to buy a property: more and you are procrastinating, less and you are not investigating.

In practice, this means you don’t have to buy the first property you see, it’s 3 months old, but it’s still better to buy anything than sit around waiting for the perfect deal (which, if we’re being honest, we’ll admit doesn’t exist).

I have a very dear friend who I would love to see successful, he has had a sizeable deposit for the last 3 years. When property was galloping up, he complained that property was too expensive, now that it’s stagnant, he complains that it might collapse.

Despite my best educational efforts and demonstrated performance, he is still a property owner. Interestingly, one of the first properties I bought in a development that he also had the opportunity to buy has now gone up to £30,000, which is not bad for a property that costs me £100 a month. At the time I bought it it was an imperfect property, oddly enough it still is, but £30,000 isn’t bad for ‘imperfect’.

The real question comes down to what my first purchase really is.

Despite my best intentions to find the best deal on every deal, I also crudely understand that your first property should teach you the process and allow you to get past the excitement first and make you money second.

I think as long as you get the education and experience under your belt on your first time, the money will follow.

So make sure you ask a lot of questions and then you can start making money.