One surefire way to quickly go out of business as a real estate option investor is to buy options on properties that are not in demand in your local real estate market. If you are smart, you will follow my advice and use the information that is readily available on local economic, business, and real estate market conditions to help you determine which types of properties to buy options on. This way, you will be able to make an informed option buying decision, which is based on the local supply and demand for a particular type of property. You can stay informed of local market conditions by:
1. Reading local business and real estate-related publications.
2. Logging on to local college, chamber of commerce, business, and real estate-related web sites.
3. Listening to and watching local business and real estate-related news broadcasts.
4. Attending networking functions with local business and real estate professionals.
But in addition to considering local property supply and demand, you need to develop your own real estate option property selection criteria, which are compatible with your personal interests, finances, and available time. This way, you can focus on a specific type of property and not waste your time, money, and energy pursuing properties in a willy-nilly fashion. Your option property selection criteria should include the:
1. Types of properties you are interested in buying options on.
2. Property price range that you can afford to invest in.
3. Percentage of the purchase price that you can afford to pay for an option.
4. Geographical areas that you feel comfortable investing in.
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The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.