Learning to make your mark in real estate takes discipline in following a set of principles. Using REIAComps to guide your deals is beneficial. These principles have guided many real estate investors to initial and repeated success. Ignoring them, on the other hand, is likely to either slow down or impede your success.
I’m sure you have heard the old saying “If it ain’t broke don’t fix it”. This is definitely true in the arena of real estate investing. Many investors live by this motto. They have either developed this system themselves, often over a period of years of blood, sweat and tears. Or they have modeled it on the system of someone else they respect. Either way, they know that their system works, and they do not deviate from it.
Most properties tend to tell a story. The key to finding the right investment property is largely a matter of locating a good property and doing a bit of research to uncover the "full story" about it. This full story includes, among other things, the fair market value of the property, the existence of any liens or liabilities (in the case of pre-foreclosure properties) and the true condition of the property.
It's essential to be able to correctly structure a property purchase in order to profit from it. Remember you make your money when you buy. In other words, your ability to generate a significant, positive return on investment (ROI) not only depends on the purchase price but also how you finance the deal.
Working with property investments, you'll find yourself dealing with all types of vendors. Consequently, it's imperative that you develop your negotiation skills in order to secure deals on favorable terms. REIAComps will more than prepare you to negotiate on any level for property deals.
Lastly, always keep learning. In other words, if you are going to make more money in this business, you must continue to learn, about the property market, the foreclosure process, financing and structuring deals, exit strategies, to name just a few. Basically to keep earning, keep learning!
Source: Investing Principals