7 Secrets of a successful property investor - Secret #2 Research, Research, Research

Research tips for your portfolio

Another common mistake made by some investors is not carrying out enough research. I am amazed at some of the stories from investors who have bought without even visiting a site. People sometimes even buy properties online!

Having established a good location you are going to need to roll up your sleeves and do put in some time to single out the best properties and sites to buy. Here are the questions we ask developers before we make any decisions:

• Find out where the university is - close is best to bring strong rental demand.
• Find out where the best schools are - again close to large schools is best to bring extra rental demand.
• Visit the location during the day and go to the cafes, pubs and restaurants and get a feel for the place- what kind of people frequent them? These people are going to be your tenants.
• Go back during the evening and find out what its like then.
• Go to the schools and ask parents what its like living here – you’d be amazed what they tell you. try and tease out the issues by asking open questions like "how much crime is there in the area?". "What do you like best about the area?". "What would you change if you could?"
• Where are the local authority housing estates in the area? - in the nicest possible way - we need to be further away from LA housing.
• Ask about the developments in the area and seek local opinion of them. Your locals will dish the dirt on local developers and the issues that come up. You may get a heads up on the developer which will serve to warn you off.

Once you are satisfied that you have found a nice area in a good location and your research is complete you are ready to start negotiating which we will cover in Secret #3.

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