Step 1: Types
Is it going to be apartments, condominiums, houses, offices or shop lots?
Also determine your affordability level.
Step 2: Location Look into great accessibility and good amenities.
It's about what you know, the network and the people in the area. The more well-informed you are, the better your chances of getting a good deal.
Step 3: Target Determine your target market.
If you are planning to buy to flip (buy-to-sell), determine who will buy your property.
If you are planning to rent out, determine who will rent.
Then research the area to find out if your target market resides in that area.
The bigger your reach, the higher the possibility of getting better returns.
Looking for "gems"
Once you've done these three steps, it's now time to look for the gems.
Next question is, "Do you know what a gem looks like?"
If you are looking for diamonds, will it be gleaming, glittering and shiny with a perfect cut? Of course not! It probably looks like any other rock. You'll have to be a professional miner to differentiate between the rocks and the diamonds. It's the same for properties. Once you have determined the good mines (areas), you'll have to start looking for signs of good properties.
Here are a couple of examples of properties that are gems - undervalued properties, well renovated, tenanted with high rental returns and owners who are motivated to sell.
Look for the signs. There's no short cut to becoming a professional investor. Just like a good miner, the more you get on your hands and knees into the thick of dirt, the better you become and the more gems you will find.
In this day and age, where almost the whole town is busy combing the beach in hopes of finding great gems (properties), I suggest that you learn to be a great miner.
It's crucial that you learn to find the gems these days, especially when everything looks shiny, glittery and priceless. The worst thing is to end up with a dud.
Educate yourself, use the right tools and network and take your time. With diligence and perseverance, you will find your mines and eventually your gems - over and over again.
Wishing all happy investing!