Purchasing the wrong property can be a monumental financial disaster. That is why it is so important to do your due diligence before you made a bid or purchase a property. You need to be very certain of your location before you spend too much time, energy and money there. No amount of paint, landscaping or cheerful office staff banter can make up for a poor location!

This job is too critical to pass on to someone else, unless that person is very experienced, successful in real estate acquisition and management. Even then, that person’s criteria may significantly vary from yours, and his or her property goals may not be the same as yours.

For example, when researching the property, you can identify repairs during a walk-through to help you adjust your realistic budget if you purchase the property. Your banker will want to see this budget and could deny the loan if your figures do not appear realistic, given the condition of the property, previous rental income and the market.

Each step in your research can prevent the purchase of an unsuitable property or help you identify items you can talk over with the seller if you believe the asking price is too high. The more information you have about the property prior to placing a bid on it, the more likely it will be that you avoid purchasing something you will regret.

Do view the property at various times of the day and night so you know what goes on in the neighborhood. What you see during business hours may be very different from what goes on after dark! You can also investigate crime reports and other resources to see what issues the community faces on a regular basis.

Again, don’t leave this task to someone else! You might get some seasoned advice from successful investors, but no one else can decide whether a property’s benefits to you outweigh the risks and whether your long-term dreams for that location are realistic. Choose wisely today so you will not regret it tomorrow!!