Getting Your Head Around Your Next Purchase

I’ve had the privilege of meeting thousands of real estate investors over the years. It’s been great learning about people’s goals and plans. I really enjoy hearing about their successes on their latest project. But often I see a lot of people get into trouble.  The focus on the big picture, but lose focus on what they need to do next. This often leads them to a feeling of overwhelm and stop people from moving forward on their next purchase.

I will ask people to focus on the very next purchase. This means that they set goals for each of the major components in order to do their next purchase. You basically set goals for each of these four major components of the initial purchase (Financing, Funding, Finding and Fixing ), and then answer a few key questions about each goal.

Let me give you an example.  Let’s say your goal was to add a new duplex in Oshawa to your portfolio. Now you need to set a plan in motion in order to accomplish this. You know that you going to need to have financing on that property.

The financing would be $325-$350,000.  So that would be your financing goal.

When would you need this goal to happen? Your answer would depend on your situation but perhaps you want to happen in the next three months.

Where do you want this to happen? This would relate specifically to the financial institution or people that are going to help you to get the financing.  You want to be specific about the team members.

Why do you need to get financing? This could just relate back to the goal or it could be a reminder of why you’re buying the property in the first place.  This could relate to the use of a specific financial institution that you are using for financing.

Finally you would want to answer how you’re going to get your goal of financing accomplished. This would relate directly to the steps you need to take in order to get the financing completed. This would be a few of the big steps that you would want to take.

Now you would repeat the same process for funding as it related to your down payment closing costs financing and renovations. Once completed and you would look at finding and fixing the property that you have identified for purchase.

I’ve included a template that you can use in order to help you to plan out your next purchase.

You can download it here.

Give it a try and let me know what you think!

Quentin D’Souza is the Chief Education Officer of the Durham Real Estate Investor Club. Author of The Property Management Toolbox: A How-To Guide for Ontario Real Estate Investors and Landlords and The Ultimate Wealth Strategy: Your Complete Guide to Buying, Fixing, Refinancing, and Renting Real Estate. And a Real Estate Investment Coach details at Real Estate Mastermind and Coaching

Source: DurhamREI News