Every spring when gardening season starts, many people till up some ground, remove the weeds, add a little fertilizer, plant the seeds and wait for them to sprout and grow. Real estate investing is like planting a garden. We use real estate comps to find a good location and eliminate the properties that do not fit our plan. We locate properties that are promising and begin the process.
Utilizing InvestorCompsOnline while developing your “Real Estate Garden Book” helps you keep track of the properties you are watching or considering as you cultivate the deals just like cultivating sprouting seeds in a garden.
First thing to consider is to determine the outcome for the property. Will it be a buy, rehab and sell property, or a property that would be a rental?
Create a Garden Book for each category of properties you are considering. Snap a quick photo with a digital or camera phone. Downloading it to your computer and adding the photo to a data page will assist in tracking of properties.
InvestorCompsOnline is able to assist you with sales history of the property, information on comps in the area, as well as lender data on the properties. We can give you the current owners info and other basic information on the property.
Check with Code Enforcement for any outstanding violations. Include a page to add notes on the property from the initial observation and then from any conversations with the owner or agent and from later visits you may make to the property.
Give each property a rating. High, medium, low. Color code each rating with different color highlighters to designate each property.
Some of the properties will be purchased by other buyers or removed from the market by the owner. You will eventually weed out more of the properties in your book…and what will remain will be the cream of the crop.
What you are trying to accomplish is to find the best property with the most potential for creating a profit or long term return on your investment.