Using Your Investor Profile to Select a Property

Okay, so you want to start investing in income properties.
 
With so many markets and so many different property types, where do you even start? We’re here to help!
 
As an experienced Realtor, and when I talk to my coaching students, I like to go over the metrics that determine your Investor Profile: Qualifying, Capital/Access to Capital, and Time.
 
Coach John and I covered these in a training session for Income Property Labs. In this clip I explain these three metrics and how they might determine the type of property you invest in.
 

 
Once you have determined your Investor Profile, you can start building your team. Check out these Success Tools to determine the questions to ask and the answers to look for when qualifying a real estate agent and a property inspector.
 
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Check out a transcript for this video below:
 
So selecting an investment property… when I talk to my members during coaching sessions, the three metrics for helping Determine Your Investor Profile and your ability to purchase a chosen property, I always go over this. It’s qualifying, capital, or access to capital and time, and these are the three things that you wanna be realistic about.
 
You may be able to qualify. You may have the capital to purchase a property, but if you’ve got five children, beneath the age of five, then you don’t necessarily have time in taking on a property where you know you’re gonna flip it and do the work is not being realistic. So those are the three metrics that you need to measure.
 
Now, you might have, maybe you’re a contractor, maybe you have a lot of time, maybe have some capital, and you have qualifying ability. So that would be an opportunity where you could possibly join with somebody too. So those are the three metrics that you know, everyone as an investor is measured by.
 
Michael and Scott for instance, they have the ability to qualify. They have a capital but and promise you that they don’t have a lot of time. So their investment strategies are geared to towards those three metrics.
 
Is that any different for commercial? Is this gonna be probably just residential?
 
This would apply to across the board for whatever strategy that you’re getting involved with, whether it’s a residential yes, the qualifying is different. When you get into obviously the five units or more, but then, one of the other measures is gonna be the capital.
 
Yeah. You’re gonna need more capital.
 
It’s recognizing. So yeah. After, approaching a mortgage broker, which is the first step, is finding out how much you can qualify. You still wanna know where you stand to, to know what your options are. So qualifying for the property, you might be able to qualify for say, up to $600k.
 
But that would also mean that you could, that doesn’t mean that you can’t get into a property with five units more aware, the rents would qualify the property, in which case then it’s recognizing how much capital you have and then the price range from there.