Perhaps when it comes to movies, music, or fast food burgers, there is no explanation for people’s preferences. And that’s fine, as it’s easy enough to shake off a 90-minute Stallone movie or a single sub-par hamburger with resolve to not eat at that hole-in-the-wall again.
But when it comes to real estate investing, it’s imperative to know what good properties look like. In real estate investing, success begins and ends with the properties you choose to buy. You need to have a refined taste when it comes to investing your money.
Choosing the wrong property can result in being stuck with real estate that no one wants or being forced to sell at an objectionable price. With a variety of real estate to select from, it is ideal to have a certain type of property in mind before you go looking. You can waste a lot of money, time, and energy if you don’t.
Having good taste also means knowing, yourself, what you want to accomplish. A good property for one investor may be viewed as a bad property by another investor due to different real estate investing strategies. A commercial real estate investor will view a well-priced deal on a strip mall as an ideal opportunity; where a residential investor would view the same scenario as simply bad property for his or her investment strategy. It all comes down to following your investment strategy…which should be based on the amount of time, energy, money, and experience you have. Focus on those that best fit your personal situation and have the potential to deliver the profits you desire.