Chapter 5
The Three R's: Research, research, research!

No doubt you will be familiar with the three L’s of real estate: location, location, location.

Before you go out and purchase a property, you must first familiarize yourself with the three R’s of property investment: research, research, and research.

Extensive and thorough research enables you to make correct and informed decisions regarding your investment strategy. Without it, you are simply inviting trouble and potential losses.

Armed with the facts regarding your chosen market, you will be able to easily identify a great opportunity from a poor one. Your goal is to become an ‘area expert’ with an intimate knowledge of values, infrastructure and any other aspects which may affect values in the area.

If you want to profit when you buy, then you must have an intimate knowledge of values in your chosen area. By researching your area, you will be able to identify fair market value and therefore, spot that special opportunity when it arises.

Always maintain a detailed record of sale prices in your area. Once you have determined the type of property that you wish to pursue, study sale prices for both original and renovated types.

The following are good sources of information of property values:

•      Local real estate brokers.
•      County clerk's office.
•      Tax assessor's office.
•      Real estate appraisers.