When I First began to invest in real estate, Real estate research It was the area where I lost most of the time.
Before feeling comfortable sending a sacrifice, I thought I had to know All On a property. All zoning nuances, each servitude, each possible red flag, left no stone without moving.
Now, being thorough is not a bad thing. But it is possible that I realized that my excessive and cautious approach was retaining me.
To manage a profitable business, I had to accept sacrifices and Close offers. But he took boxes or sacrifices for each one who was accepted. In that volume, spending hours investigating each property was sustainable before making a sacrifice. Mathematics did not work!
If I wanted to progress, something had to change.
The truth is that, when he sends sacrifices for a fraction of the market value of each property (such as me), most people will say “No.” This is how it works when you try to find motivated vendors: you throw many lines, but only a few will bite.
Related: How much should you sacrifice for that property?
Accelerating the proper diligence process
Once I realized this, I knew I had to cut the fat of my research process.
I couldn’t spend an hour investigating every property I found. If I did not make drastic changes, I would like to survive as real estate investor.
After much adjustment and experimentation, I reduced my research process to what I considered the most important factors. These were the essential information I needed to know to determine:
- Whether or not to make a sacrifice
- How much sacrifice
The following video describes this list of “Bare Esuntials”, that is, the verification list that I followed when investigating each property. (Suggestion: See this video on full screen to see all the details).
https://www.youtube.com/watch?v=ac3acl-oti
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Related: Are you using the best real estate data?
Why to use the research sheet of my property?
If you are looking for a due diligence leaf “Bare Essentials” as well as the one you use, you can subscribe to the retipator email list and download it for free:
Get to “good enough”
Now … is this process perfect? No.
But does the story tell and gets the back of the most common problems quickly, which allows me to send 10 times more sacrifices As a result? YEAH.
I feel comfortable gathering only the essential essential information because I have a purchase contract that gives me a “return”. To send boxes or sacrifices simultaneously and No Being locked in each one, there must be a way of making unwritten sacrifices (think about it as a “letter of intention”), all while it is very clear about this fact and obtain the seller’s consent.
This has allowed me to go much further in my acquisition process. With Have to invest innumerable hours of my time before the seller makes a reciprocal commitment with me. With this approach, I can make sacrifices on each property porch I know to the last detail and together with the removal pieces after I have received each acceptance and porch I close in the deal.
Consider this idea of Ken Mcelroy, author of ABCs of Real Estate Investing:
“The analysis is paralysis. I follow an agreement when I know 70% of everything. More than that requires too much and less is too risky.”
We do not need perfection. We need enough information to make a reasonably educated offer.
Related: The only 3 things you need to make a sacrifice (it’s simpler than you think!)
Keeping it simple
I have lost more time investigating agreements with no way out of what I would like to admit. Many hours of my life were lost by rabbit holes and red herring. So now? I keep it simple.
This is how I do it: Do not spend more than 15 minutes digging on a property before making a sacrifice.
If I cannot obtain the basic concepts in that time window (and preferably less): market value, size, location, any obvious red flag), then it is not worth the time.
Once they accept me, I am willing to deepen, but only when I can see that I am dealing with a property and a person who has shown me that they are my time.
I do not say that this has to be your process. You may like the spreadsheets and due diligence marathons (God bless you if you do it!). But after years of making thousands or sacrifices to each type of seller under the sun, I learned to protect my time, it is gold, Because it is!
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