We’re going to let you in on a little secret about real estate investing: there is no “best investment” overall, in any market.
What makes a “best investment” for one investor would make a terrible investment for another investor. The truth is, there are many factors to choosing the best investment property in Richmond VA.
Understanding the factors that go into this choice and optimizing them for your situation is the best strategy to influence how quickly you’ll reach your investing goals.
We at Patterson Property Solutions have been investing for a long time and we’ve collected together some of the best factors that contribute to choosing the best investment properties… and you’ll find that these are true no matter what market you invest in.
Strategies for choosing the best investment property in Richmond VA
Strategy 1: Know your investing goals
The most important factor to your investing success is to know what you want to get out of investing in the first place. Before you invest anything, sit down and carefully think about the following: How much money do you want to make? When do you need that money by? Do you need the money in a steady stream (from cash flow) or as a windfall (from an appreciation-based sale)? Are you looking to quit your job and fund your current lifestyle or do you want money for retirement? Clearly outlined investing goals are essential to helping you decide which investment properties are right for you.
Strategy 2: Know yourself
Once you’ve figured out what you want, then you need to figure out how your own personality, skills, strengths, weaknesses, and risk tolerance will contribute to (or detract from) your goals. As you uncover each fact about yourself, you’ll shed light on how you can invest in a way that is right for you. For example, if you want to buy real estate but don’t have the cash or credit, that’s something to think about. (It doesn’t mean you can’t invest, it simply means you have to figure out how to do it differently than if you had your own cash to use). Or here’s another example: If you are working at a full-time job and love it and don’t want to quit that job then you need to find real estate investments that are managed for you (such as turnkey real estate investments). Perhaps the most important question about yourself is: “What can I give in order to achieve my goals?” For some people that is money, for others it’s time, for others it’s effort.
Strategy 3: Know the market
Once you know what you want and a bit about yourself, then you will start to have a pretty good idea about what kinds of investment properties will work for you and what won’t. If you narrow down multifamily and commercial property investments then you can start focusing your time on single family properties. But narrow your scope even further and start to look within a geographic area, such as Richmond VA. As you review your specific type of investment (such as single family homes) in your specific geographic market, you’ll soon develop an expertise in your market, allowing you to spot great deals and bypass bad deals. Resist the temptation to spread yourself too thin among too many markets: A focus on just one or two markets may not present you with as many deals as you might normally like but you’ll be able to spot great deals sooner because of your familiarity.
If you decide that you want to focus on a market like Richmond VA then fill out the form here to let us know because we’re always finding deals in the area!
Strategy 4: Know your team
Next, it’s time to start thinking about your team and who needs to be on it. For some investors, this might include real estate agents, contractors, attorneys, accountants, and more. A lot of investors who work with us at Patterson Property Solutions consider us a part of “their team” because we help them find the deals they’re looking for. Whoever you choose to be on your team, remember this: The answers you give to the first 3 strategies (above) will determine who will be on your team.