If you’re not certain about your real estate investing criteria, you’re falling into one of the biggest traps of common REI Mistakes.
Fortunately, there are definite parameters you can look at with REI that can ensure a property will cash flow.
You just need to know what they are.
Real Estate Investing Criteria That Helped Me Become a Billionaire
1Don’t test the water, jump in!
The first and most important number in this industry and will always be number of units.
Too few units and you have leverage issues. These are the deals that are first to go down in a recession.
Checking off the next real estate investment criteria will help you have more confidence in doing bigger deals.
2Risk vs. Stability
Next, one of the fundamental parts of successful real estate investing is your market research and due diligence.
A clear understanding of the market, future building plans in the area, and the current rents give you a huge advantage. You can almost predict what will happen and make wiser decisions. I’ll tell you all about this in my Free Real Estate Training, so hop on and register to hear how I did it.
In addition to this, you can determine a fair middle-of-the-road rent to charge. There is a shortage of affordable housing in the U.S. As a result, having higher rents provides stability.
Putting this in place for your real estate investing criteria can set you up for success.
3Control Your Neighborhood
Ideally, you should aim to buy multiple properties in the same neighborhood. Why?
Because that means you set the standards of what will happen in that market. This is an invaluable edge in real estate. It makes the above two criteria much easier to accomplish.
In conclusion, these real estate investing criteria can help you succeed in the game. I use these with every deal I look at to create wealth and success.