There are fifteen steps or phases to your SUPERCHARGED RISK FREE property investment portfolio. I will deal with just one at this time which I believe is the critical step that can not be neglected or bypassed this step will create momentum propelling you forward.
STEP 1: ACTION
You must be active, prepared to study and work to achieve your desired goals in property investment, the action steps below will get you moving.
Research historical statistics
Build a library of property investment books
Learn about your self (your risk profile, strengths, weaknesses)
Collect and scrapbook media articles on property and property trends,
Become intimate with the rhythms in the chosen area that you are investing in,
Create a grid.
Prove to your self that you cannot loose, using the right system of property investment by cross referencing historical data with current records.
Check with your local government authority on three different property examples over a period of ten years to date
If you know of someone that has lost money on property, perhaps even your self, look at those examples, plot them on your grid to see why and what went wrong.
START DEVELOPING EXPERTISE BY:
Creating your own investment journal,
Writing down information / ideas/ property values,
Keep a record of the types of property you have looked at and the list price and the offers you have made and the eventual sale price, did it sell at a significant discount to market,
Record the positives and negatives of each property, and is there a higher and better use of the property available right now or at some time in the immediate future can that time frame be shortened?
Recording questions that you have asked and the answers that you received.
Recap all your information when you get home and then:
Highlight important points and factors,
Take photographs of properties from at least three different angles,
Note down locations, amenities, demographics,
Log down distances to these amenities,
Identify a need that is not being currently satisfied in the area you are researching.
Study the population in the research area and:
Look at the employment in the area and the age of the population,
Talk to the locals find out what they love about the area and what they dislike,
keeping notes of these comments for latter analysis this will allow you to identify possible opportunities to maximize your profit,
Facilities available like schools, shopping centers,entertainment,water views,
Other factors like demand and in particular the type of demand,narrow it down become specific,
Attend auctions in the area of interest,
Ask about private sales, speak to the locals they usually give you an honest version of what is happening,
Growth in the area
Familiarize your self and understand the rule of 72.
The rule of 72 gives you an idea of how long a particular investment will take to double in value once two factors are included, this gives you the investor the ability to predict when your seed capital will be released for reinvestment, the shorter the period the better and the greater your profit.
There is no free lunch to be successful you must be prepared to put in the effort by doing methodical research,on each and every investment, resist the temptation to short circuit this research by falling for the babble of the market or the fear of missing out.
As an investor I have never missed out, sure there have been times where I may have doubted myself and wanted to just dive in because everyone else was and values were doubling, this lemming like approach will destroy your investment and profits as sure as the sun rises every morning.
By Martin Fisher