Having more data to analyze when making a property investment decision is always a good thing…right? Perhaps you should consider this: As a general rule, the more data we have available, the more difficult it is for our brains to process it. For many, the notion that alternatives could exist may lead to getting stuck in the searching and analysis phase, never quite translating into action. Others may get stuck in decision-limbo out of fear of making the wrong choice, imagining all the things that could potentially go wrong.
We want to be clear here…thorough analysis of any potential investment property, including the market in which it is located, is critical to making good real estate investments. Often times though, investors will collect large amounts of information and then ultimately fail to take decisive action.
There are of course ways to make your decision-making more efficient. Start by clarifying your end goal. Sometimes the inability to decide stems from not having a specific idea of what you want. By eliminating any options that would not suit your long, or short term goal, you can limit your property searches and make them far more efficient. Also, remember to always have a process in place for reaching your goal. Making a prudent investment decision with the proper goal in mind is a great start, but rarely are goals attained without a good process.
This one is important…be realistic when conducting your analysis and determining your process. Take your budget, skill-set, and available time all into account when weighing potential properties. If you don’t have room in your budget, cannot do the work yourself, or don’t have the time available for overseeing an extensive rehabilitation…the decision just got a lot easier.
At the end of the day, there will always be reasons, and possibly data points, that lead to buying, or not buying, any particular property. It’s important to focus on your goal, along with your realistic process to achieve it, and analyze the potential investment in that context.
Whether you’re considering a rental investment in Phoenix, or a fix and flip, CIVIC is always here to help you meet your short and long term investment goals. Give us a call at 877-472-4842 today and let’s get started!
Also Check Out: Identifying Growing Markets To Purchase Rental Property In