When it Gets Real: 4 “Must-haves” Before Buying your First Investment Property

1 Comment

Tim S. on 11 Feb 2017 at 3:05 pm

Wisdom. I think you could add wisdom to the list of things you need before you invest. “Wisdom is knowledge flavored through the experience of life,” is my way of saying that while learning lots of facts is prudent, investing in anything with real blood, sweat and tears requires an application of wisdom to the reality life presents. Finding a great potential property in an up-and-coming neighborhood may ‘feel’ right, especially if you have a pre-approved mortgage burning a hole in your pocket. But having wisdom means you also think and look through the prism of experience, where you may find other factors that could impact your success. Perhaps after researching further, you discover that down the block the local government is considering a public housing venture. Seems like a nice idea until you discover how many low-income housing ventures turn into drug-driven slums, and that investment that looked so good on the surface could turn into a financial loss down the road. This is simply an example of the practical application of wisdom. Don’t imply that wisdom prevents you from investing; it should INFORM your investing. And wisdom is gained through the experience of life, yours and the lives of others. Reading books others have written about their experiences can help here, but nothing can replace your own personal life experiences IN THE FIELD where you are looking to invest.