Purchasing real estate is not something that you should do from an emotional perspective. Too often people who are new to the real estate business let himself be led by their hearts rather than by the brains. This of course is a terrible mistake that will almost always lead you to disaster. If you are buying real estate for the purpose of investment then you should always be pursuing these deals from the perspective of your Artra. That is your return on investment.
There is no other factor that matters than the ROI that a property can deliver you. You should not get bogged down with ideas about whether you like the color, or you think the bathroom is perfect, or whether or not you want to make little changes in the kitchen. Those are thoughts that a home buyer would have if they are planning to move in. Those things do not matter to you. You are not concerned with color, you’re not concerned with finishes, you’re not concerned with anything other than what ROI can get.
I hope I have made that point very clear because it is one that new investors mess up over and over again. This is probably one of the most frustrating things that I see. Rather than being a professional investor people get bogged down in meaningless details.
Now I’m not saying that you should always ignore the color of a building, or the quality of the build materials, quite to the contrary there are times when those aspects of the property will play a major role in the return that you can expect. However, more often than not those little minute details should not be the driving force behind your decision.
For example if you are looking at a property that was well-positioned in a very good location and given its location you can expect a annual return of approximately 6% that would be a very good return on a basic real estate investment. You would not worry about if you liked the wall colors because the wall colors can always be changed if they need to be when it comes time for you to sell the asset.
The minute details of the property. That is the finishes, the landscaping, the colors, and so on can always be changed. You cannot however change the location and it is the location of the property that will play the biggest role in determining what your return will be. A phenomenally nice house in a terrible neighborhood will never let you a return. On the flipside warehouse that is run down and in terrible need of some upgrading can still niche you a phenomenal ROI if it is in a highly desirable location.
For a real estate investor location is everything. Location is the key to success. It is bar none the number one factor that you need to remember. After you make sure that you have the right location locked down then you can get down to the nitty-gritty and worry about finishing details.