Being a great investor in property business is not easy. There are many challenges to face and there is always not enough time. However, being a great investor is not only defined by the number of capitals or contacts you have. Of course, capital and contacts are important and valuable assets. However, they are not enough to make you a great investor which can build property business well. Being a great investor means you can look for better deals. It seems simple but not easy. Working on good or even better deals needs hard work. It also requires great plan and strategies.
How to look for better deals properly?
Aside from many challenges you need to face in order to build your business, you also have many assets and potential to maximize. Even little things are great potential you can use to close deals. Here are some tips to close better deals for your property business:
- It is always mentioned that property business is not about feeling but numbers. Thus, you need to look at the numbers to look for good deals. This way, you will be able to decide the strength of a deal. While looking at numbers, it is also highly suggested to take conservative approach with all of the numbers so you won’t feel like tricked by the numbers. When you see that the numbers don’t deceive your judgment then you can precede the next step which makes you closer to choose better deals.
- It is often that investors only focus on the number of deals they successfully achieve in a year instead of closing fewer, better deals. Of course, it is not wrong to make small profit from mediocre deals. However, you shouldn’t let a chance to close better deals slip off your fingers. Thus, it is important to know when to walk away and when to step forward of potential deals. If you think the deal is not good enough, you’d better walk away and look for more potential deals.
- Setting up exit strategies is a great way to look for better deals. When you have multiple exit strategies, the higher the chance to close better deals. It is also useful to avoid unnecessary loss when you are already involved in deal that doesn’t go as planned. Your multiple exit strategies are your backup plan. Remember that in every business, the unexpected is unwelcome but sometimes it is unavoidable. However, you will stay safe if you have exit strategies which will lead you to find better deals in the end.
- To be able to recognize good deals, you need to know what the expenses are first. You need to make sure that you know the holding cost, interest expenses, as well as closing costs. Seasoned investors might have good idea once they take a look at a property. However, it is not easy for new and inexperienced investors. If you calculate the expenses thoroughly, you will even find hidden expenses which can help you find out if the deal is good or not.