As a real estate investor knowing your market will put dollars in your pocket. NOT knowing your market will cost you. Make it a point to be familiar with the communities you invest in.
Knowing your market protects you from overspending, either on purchase or repairs. Your goal is to maximize your profit. Never set yourself up to lose money!
If you’ve ever competed with other investors for a deal, you know how important it is to be knowledgeable. If you’re not on your toes, they might beat you to a deal. But it isn’t about a race. It’s about making wise choices and the wisest choices are made when you know your market.
Do you know how to evaluate a deal? It’s critical because it takes the guesswork out of your decision-making. Successful investors are not gamblers. They evaluate and take calculated risks based on doing their homework.
How do you know what choices will generate a profit? Well, first you need to know how to choose the best property for your investment. Knowing how to identify a good deal is one part of the process. Determining how much to offer and how to get deals under contract quickly are also important.
The most important thing to remember is the more you invest, the more potential you have to earn. You must also learn how to determine if the property is a good deal or not.
What are you willing to spend on it? Many deals will come your way and you probably can’t buy all of them. Unless you know how to determine whether they are good deals or not, you won’t bring value to yourself or to other investors.
If you get a reputation for bringing bad deals to other investors you work with, word will get around quickly. As a wholesaler, if you bring four or five bad deals to an investor, he will stop taking your calls.
Know your market. If you’re careless, lack education or pitch bad deals, your career is over. But if you position yourself as someone who knows a good deal, the investor will always answer the phone. For this reason as a wholesaler, you must always take the time to evaluate deals before bringing them to potential investors.