The key to finding the right real estate investment deal starts with a clear set of goals.

Once you have established clear goals, put them into a financial plan that can be achieved in the timeline you select with the help of your financial advisor. Your financial plan will lay the groundwork for securing the right real estate investments.

There is no shortage of information online about real estate investing. Some of it is great information and some of it may be unrealistic in the market you intend to invest.

Having a financial advisor that is educated in the market in which you choose to invest will be the difference between finding the right deal or getting stuck with the wrong deal. 

I’ve been doing this for a very long time so I’ve seen far too often the bad decisions new investors can make. For example, you should never buy any real estate without the guidance of your financial advisor or a trusted real estate investment expert.

You need representation.

Going directly to a seller or to a listing agent can be filled with trap doors and won’t get you a better deal, let alone the right one for you. There are many beneficial regulations providing for the protection of the consumer. If you skip securing the right licensed representation, you’re likely to get stuck with a headache that could last years and cost you a bundle.

Buying the right deal means knowing exactly what to look for and finding the perfect formula of below market value, building condition, occupancy rate and capital expenditures combined with the right type of leverage and use of your own assets.

Make an educated decision by:

• Knowing the fair market value for rent in the area you wish to invest

• understanding tenant expectations regarding the condition of the units they rent

Knowing exactly how much you can improve your property and the income it can generate from those improvements will help you determine if the renovations are worth the investment. Be sure not to over-improve or under-improve a property. What needs to be improved for optimal rental positioning is insight that can only come from a real estate expert in your market. The typical local real estate agent does not possess the education or experience to help you evaluate a property’s leasing potential.

The right deal provides the ability to secure a property that is not latent with defects, has good upside value, allows you to achieve market rents and ultimately gives you the foundation to reach your financial goals.

We refer to this as a value-add property.

When you find the right deal, you’ll realize cash flow that’s consistent, predictable and controlled. Your property asset will appreciate faster than any other individual investment strategy, generate passive income that doesn’t require your time and provides you with something that retains its value through economic downturns.