Vail Colorado – January 2020
As an investor, you most likely have different motives than traditional buyers. Although there are a lot of similarities between transactions involving investor buyers and buyers who are planning to reside in or run a business in their purchased property, the reasons for a purchase and the methods used for choosing a property can be quite different between investor buyers and other more traditional buyers.
Investors tend to think strategically when considering a purchase.
Although a real estate investor is looking at the same market as a traditional home buyer, the investor is looking at the market through a very different lens.
Whereas a traditional homebuyer wants to know about school districts, landscaping, and kitchen layouts, an investor is less emotional about the transaction and mainly considers a few key factors when making the decision. These considerations include:
- What is the potential value in a property?
- How much will it cost financially and in terms of resources to receive the property’s potential value?
- What are the risks associated with this acquisition?
Generally speaking an investor is looking for a ‘deal’. Perhaps a home or property that has been on the market for a while and hasn’t sold for some reason (i.e., overpriced or the renovation is more that what others may want to undertake). Investors are looking for properties that will return more than the initial investment at some point in the future. If investors lose sight of their wealth-building goal and purchase property on a whim or because of “bells and whistles,” they may end up making a dangerous, costly investment error that will take them a long way from their wealth-building goal.
Calm and collected…
It takes time, perseverance and planning. Get started and little by little, you’ll get there.
It helps to talk with someone, so we are happy to chat about this to get you going.