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Buyers’ Investment Game Plan
Don’t get with the program, just develop your own
Ask yourself the following questions
1) Why real estate?
2) Why Phoenix (or its surrounding cities)?
3) What are your investment goals? Are they realistic?
a) Cash-flow. What return on my investment am I looking for, if any?
b) Appreciation. What return, if any?
c) Equity build-up (loan going down)?
e) Hassle-free?
4) What type of real estate? What are the advantages and disadvantages of each?
a) Apartment buildings
b) Houses (new vs. Resale)
5) What area or sub-market in Greater Phoenix interests you and what condition or construction of
property do you want?
a) Downtown, north, south, east or west Phoenix, Scottsdale, East Valley (Mesa, Tempe,
Chandler, Apache Junction)
b) What about Pinal County (Maricopa city, Casa Grande)
c) Do you want property that is: 20-30 years old, newly constructed or historic?
6) Understanding the local market
a) What do you know about the local market? (vacancy rates, property pricing, rents, new
construction, etc)?
b) Could any/all of these items have an effect (positive or negative) on your investment experience
in the real estate market?
c) What effect could the national economy have on the local market (i.e. change in rates,
lending, alternative investments—wall street)?
7) Investor Psychology/preferences:
a) Do you consider yourself an aggressive or passive investor?
b) Would you rather have cash-flow or location?
c) Want about year built vs. location?
d) New vs. resale?
8) Are you looking short term or long term?
a) How short is short term? If the market shifted, could you be a long term player?
b) How long is long term?
9) What is the local method of evaluating property (do they use cap rate, GRM, price per units, price per
sq ft, or ROI). If so, what the heck do all of these mean?
NOW: The reality check
It is extremely important to know the area and product to which you want to invest in.
.
Develop your Plan of Action:
1) Decide on the area where you want to invest.
2) Decide what type of property you want( apartments, rental homes, commercial)
3) Decide on how many properties you want and how much down payment you want to spend.
4) Don’t be a weekend warrior. Finding investment property takes time. Not only from your buyer broker,
but from you. Invest time to physically drive and familiarize yourself with the area and inventory. This
is a must.
5) Confirm that your goals are realistic and can be met, based on your plan of action.
6) Line up financing, in advance. Offers with strong loan approval letters say “I am qualified and serious”.
7) Get good advice. Always consider the source. Is it bias or un-bias? Why?
8) Decide on an exit strategy.
Disclaimer:
The following writings are for information purposes only and is merely an outline to assist buyers of investment property. All buyers
are encouraged to seek competent advisors to assist then in their investment decisions as well as due their own due diligence.
© Copyright 2004 David Gudmundsen
Don’t get with the program, just develop your own
Ask yourself the following questions
1) Why real estate?
2) Why Phoenix (or its surrounding cities)?
3) What are your investment goals? Are they realistic?
a) Cash-flow. What return on my investment am I looking for, if any?
b) Appreciation. What return, if any?
c) Equity build-up (loan going down)?
e) Hassle-free?
4) What type of real estate? What are the advantages and disadvantages of each?
a) Apartment buildings
b) Houses (new vs. Resale)
5) What area or sub-market in Greater Phoenix interests you and what condition or construction of
property do you want?
a) Downtown, north, south, east or west Phoenix, Scottsdale, East Valley (Mesa, Tempe,
Chandler, Apache Junction)
b) What about Pinal County (Maricopa city, Casa Grande)
c) Do you want property that is: 20-30 years old, newly constructed or historic?
6) Understanding the local market
a) What do you know about the local market? (vacancy rates, property pricing, rents, new
construction, etc)?
b) Could any/all of these items have an effect (positive or negative) on your investment experience
in the real estate market?
c) What effect could the national economy have on the local market (i.e. change in rates,
lending, alternative investments—wall street)?
7) Investor Psychology/preferences:
a) Do you consider yourself an aggressive or passive investor?
b) Would you rather have cash-flow or location?
c) Want about year built vs. location?
d) New vs. resale?
8) Are you looking short term or long term?
a) How short is short term? If the market shifted, could you be a long term player?
b) How long is long term?
9) What is the local method of evaluating property (do they use cap rate, GRM, price per units, price per
sq ft, or ROI). If so, what the heck do all of these mean?
NOW: The reality check
It is extremely important to know the area and product to which you want to invest in.
.
Develop your Plan of Action:
1) Decide on the area where you want to invest.
2) Decide what type of property you want( apartments, rental homes, commercial)
3) Decide on how many properties you want and how much down payment you want to spend.
4) Don’t be a weekend warrior. Finding investment property takes time. Not only from your buyer broker,
but from you. Invest time to physically drive and familiarize yourself with the area and inventory. This
is a must.
5) Confirm that your goals are realistic and can be met, based on your plan of action.
6) Line up financing, in advance. Offers with strong loan approval letters say “I am qualified and serious”.
7) Get good advice. Always consider the source. Is it bias or un-bias? Why?
8) Decide on an exit strategy.
Disclaimer:
The following writings are for information purposes only and is merely an outline to assist buyers of investment property. All buyers
are encouraged to seek competent advisors to assist then in their investment decisions as well as due their own due diligence.
© Copyright 2004 David Gudmundsen
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