In search of the perfect property deal
Hey guys,
One of the most damaging limitations that a beginner investor faces when building a property portfolio is the dreaded perfect deal.
As if trying to find the a property wasn’t enough the budding investor now has to find the perfect finance, the perfect solicitor, the perfect area, the perfect rent, the perfect growth prospects, the perfect builder, the perfect sales consultant, the perfect club, the perfect interest rate – everything has to be nothing short of PERFECT.
So how do they achieve this? ln short, you simply don’t and despite everyone’s best intentions you won’t.
I have been in property one way or another for over 9 years l am yet to find the elusive perfect deal. I have however consistently made money from property and built a substantial portfolio of properties, despite every single property that is part of this portfolio being imperfect in some way.
So what’s the motto – Be realistic but practical. Do your due diligence using the various guidelines l have suggested to buying, holding and selling property but don’t use these as a excuse for procrastination.
My simple 3 month rule applies in these circumstances. It simply states:
You have 3 months to purchase a property – any more and you are procrastinating, any less and you are not researching.
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Practically, this means that you don’t have to buy the first property you see, you have 3 months but likewise it is better to buy anything than to sit around waiting for the perfect deal (which if we’re honest we’ll admit doesn’t exist)
I have a very dear friend whom I would love to see successful, he has had a sizeable deposit for the past 3 years. When property was galloping upwards he complained that property was too expensive, now that it is stagnate, he complains it might crash.
Despite my best educational efforts and demonstrated performance he is still to own a property. Interestingly enough, one of the first properties I purchased in a development that he also had the opportunity to buy has now gone up £30,000 which isn’t bad for a property that costs me £100 per month. At the time I bought it was an imperfect property, funnily enough it still is, but £30,000 isn’t bad for “imperfect”.
The real question comes down to one of what really is my first purchase?
Despite my best intentions to find the best deal every deal I also understand that crudely your first property should teach you process and allow you to overcome emotion firstly and secondly it should make you money.
I believe that as long as you get the education & experience under your belt on your first the money will follow.
So be sure to ask lots of questions then you can get onto making money.
Live with passion,
Brett Wood
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