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.
Disclosure: This content is intended to be used for educational and informational purposes only. Before investing, you should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.