Do These 5 Things BEFORE Investing In Your Next Property

Before the investing comes the preparation. You don’t wait until a deal is dangling in front of you to get all your ducks in a row—not only would that put you at risk of missing your shot, it also makes it easy to get caught up in the excitement and forge ahead with taking the time for due diligence. To set yourself up for success, before investing in a property, make sure you are prepared, with these 5 simple, but effective steps: 

1. Know your investment goals and strategy

Before you can search for your next investment, you need to know what goal you’re striving to achieve next. Do you want to reach a specific returns threshold? Do you want to diversify your portfolio? Whatever you’re working towards, it’s important that you have it laid out before putting the work in to source properties. This will also inform the rest of the decisions you need to make – from acquisition to exit strategy.

Many investors benefit from developing a Buy Box, which can efficiently filter a large universe of investment opportunities and helps them stick to their strategy – which is especially important during a competitive acquisition landscape.

2. Look at multiple investment properties

The first step in the acquisition process is to find new properties to invest in, but you don’t want to stop at just one. It’s in an investor’s best interest to look at many different properties and analyze each one before deciding which one is worth your investment. You can use our Returns Analyzer to analyze properties in the field, so you’ll know in seconds whether you have a good deal on your hands.

You can read more about sourcing channels you may not have used yet in our Strategies to Acquire Real Estate Investment Properties blog post!

3. Get pre-approved for financing

When working with lenders, the funding process can move extremely slow, often taking several weeks or months to close on a loan. In the current market, real estate investors don’t have the luxury to sit and wait in the hopes of getting competitively-priced financing. That’s why it’s critical to get your finances lined up early.

Our goal is make the financing process faster and more efficient, while providing better terms. Once you’re ready to move forward with a property, you can get pre-approved for financing right from the Backflip app. 

*All Backflip applications are non-binding and will never initiate a credit review

4. Utilize your network

Many real estate entrepreneurs don’t like turning to other investors for help, for the fear of a deal being swiped out from under them. The truth is, investors are more than willing to help those in their local network. They can be a great resource not just for sourcing new opportunities, but for support in growing your business.

As you continue to learn and take your businesses to the next level, utilizing your network for advice, guidance, or support is a great way to fast track that journey. 

5. Be confident in your lending partner

Partnering with a trustworthy lender is another integral part of the investment process that shouldn’t be taken lightly. At Backflip, our goal has always been to give our members the best terms for their deal, and continue to be their partner as they grow their portfolio. It’s why our members are so effusive about their experience. Once they submit an application for a property, we work with them to determine the financing options best tailored to their goals.