One of the most common questions real estate investors ask is, "Where do I find great investment properties?" New and experienced investors alike face this challenge. They are ready to take action, but need to feel confident they are getting a great deal.
Finding investment properties isn't easy, but it isn't complicated either. Without good prospective properties, your investment plans can't be accomplished. So what's the secret?
In his best selling book, "The Millionaire Real Estate Investor," Gary Keller outlines the Lead Generation Model, which details the process that millionaire real estate investors use to generate enough potential properties, or suspects, which turn into prospects, which end up as great deals.
Area residents can learn about investment property lead generation by attending a Millionaire Real Estate Investing seminar, presented by millionaire real estate investor Kevin Mackessy, from 10 a.m. to noon on Saturday, Oct. 20, Nov. 17 or Dec. 15. Seminars are held at Keller Williams Executives Realty, 200 W. Plaza Dr., #200 in Highlands Ranch. To make a reservation, call 720-206-0203.
Mackessy will share his own experience in generating great deals and turning $10,000 into more than $1 million in real estate equity in seven years.
"You could say it's quantity of investment opportunities first and quality of your picks second," Mackessy says. "Finding great opportunities is a numbers game. The quality is in the quantity."
Finding great deals starts with defining clear criteria. You must know exactly what you are looking for in an investment property. The clearer that picture is, the better the odds are that you will recognize it when you see it. Knowing exactly what you're looking for helps you sort through the large number of prospective properties you will consider.
"You need to set your parameters and treat the process like a business," Mackessy says. "When you sharpen your criteria, you sharpen your focus. Focus in anything brings clarity."
Investors must consider location, property type, economic conditions, property condition, type of construction, property features and neighborhood amenities.
Concentrating on a few selected neighborhoods is a great way to start to build your criteria. The area may be close to where you live or work. This close proximity will help when you are involved in fixing properties or managing your own rentals. Next consider the type of properties you want to buy.
"By far, single family homes are the best in this market," Mackessy continues. "Condos and town homes are less attractive because of the large amount of them on the market. Learning about neighborhoods is very helpful, including schools, churches and shopping areas. The more you know, the better your decision making process becomes."
The next consideration for investors in this process is who will help in finding potential properties. As part of the research for the MREI book, the authors wanted to understand where the best deals came from. They found that networking (32 percent) and working with real estate agents (28 percent) brought investors their best deals. Driving the area accounted for another 10 percent. These numbers show the importance of working systematically in your investing search.
"Being active in the market is essential," Mackessy says. "I work in six primary neighborhoods, which again, brings focus. Of the 9,748 homes in these areas, I have been through almost half of them in the last seven years. I know that market and can separate the suspects from the prospects quickly in these areas."
To help investors continue their financial education and network with other investors, Mackessy hosts the Millionaire Real Estate Investors Club, which will next meet on Wednesday, Oct. 24 from 7-9 p.m. at the Highlands Ranch Keller Williams office. The meeting will feature Mackessy's personal CPA, Brenda Sherman, who will talk about tax planning strategies for investors. Come learn how advanced tax planning can help build your real estate wealth.
To register for one of the MREI seminars, or the October MREI Club meeting, visit BuyHoldWealth.com or call 720-206-0203. Seminars cost $25 and attendees receive a copy of the MREI book. Entry to the MREI Club meetings is $15 per meeting or $125 for a year's membership.
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