No matter your investment strategy, there’s one thing I know for sure:
Buying a property is a massive decision.
It doesn’t help that commercial properties are generally quite expensive. The last thing you want to do is pour a ton of money into something that won’t get you closer to wealth and freedom.
Luckily, buying a suitable property isn’t as complicated as many people think.
All you need is a system… which I just happen to have.
Specifically, I have five steps that you need to follow to find the perfect property.
1. Decide If It Fits Your Strategy
Obviously, the first step to finding the right property is making sure that it fits your strategy and goals. But you also need to see if you can finance the property comfortably.
You need to have a precise figure in mind and make sure that you stick to it.
During the negotiation process, you might bring the price down, but you shouldn’t rely on this from the get-go. Instead, set your limit, look at your strategy, and find a property that checks all the boxes.
2. Get the Basic Information
Due diligence is a critical factor in buying a property. In reality, you start doing it from the moment you take a look at the property.
The first few pieces of information you’ll get relate to the location, tenants, lease, and similar data. During the later stages, you’ll get into more detail to see if you should buy it or pass on it.
3. Get Your Finances in Order
Once a property piques your interest, you’ll want to start talking to your lender. Doing so will ensure that your finances will be ready by the time you make the final decision.
In most cases, a simple phone call or email should do the trick.
Reach out to the banker and tell them that you plan on buying a property. Then, ask them to take a look. Ask if there’s anything in particular that you should know and if everything seems to be in order. If so, you can comfortably proceed with the next stage. You’ll know that the money is ready so there’ll be no unnecessary delays.
4. Complete Your Due Diligence
As you get closer to making the final decision, due diligence becomes more and more thorough. You start looking at the details and liaising with the agent and solicitor more frequently.
However, you’ll also want to do your own research to see if the numbers you’re getting are correct. You should remember that it’s not uncommon for the agent to not have all the right data. Also, many will underestimate the property’s potential.
Because of this, you’ll want to crunch the numbers and discuss any mismatches with the agent.
By the time due diligence is over, you should have enough confidence to buy. All you need to do now is…
As mentioned, the price you see on the listing won’t always be final. In fact, there’s a high chance that you’ll be able to negotiate for lower prices.
And that’s something that you absolutely should do!
When you enter the negotiation process, you must have all the right information.
Not only that, you also need to know about both the market and seller.
This will boost your bargaining power and can help you negotiate better terms or lower the price.
Once you’re happy with the deal you’ll get, it’s time to finalize it and make that big decision. And if you go through the above steps correctly, you’ll be confident that it’s a good one.
Of course, each of the steps comes with many nuts and bolts that you’ll have to figure out.
If you need any help, go ahead and sign up for my webinar.