How to Determine a Good Investment Property in Philadelphia
Many consider jumping into the real estate game. Philly has tons of opportunities, but don’t let that fool you into thinking investing in Philadelphia is easy. With a surge in vacant properties, it’s important to tread carefully when considering real estate investment in the city. Competition is high and finding a truly “good deal” can be scarce.
Many real estate investors fear rivalry and competition. They feel that if they share their insider knowledge, somebody will take their ideas and run with them. But that’s not how it works, and having that mindset won’t set you up for success.
When you work with different investors, you achieve things together that you couldn’t do effectively alone. There is power in numbers! Sharing learning and methods of reasoning is a great way to develop your own success, while also building the success of others as a byproduct.
But where do you find good real estate investment deals in Philadelphia? And how do you determine if it’s a good investment property? We ask (and answer!) these questions every day. At Brotherly Love Real Estate, our team finds properties from an assortment of sources – namely from the web, directly reaching out to sellers, and our vast network.
Are you thinking about investing in Philadelphia? Keep reading to learn how to determine a good investment property in Philadelphia.
1. Think Long-term
Properties don’t move like bonds, stocks, or bitcoin. Real estate is considerably more stable. Houses are where people live, work, and play. They are not numbers on a screen that can be moved around (i.e. invested) quickly or easily.
Likewise, even if you’re flipping a house, it’s difficult to make a fortune in a few seconds when buying or selling property. Real estate investment is a long-term strategy, and your decisions should be based on that fact. Remind yourself that you have time and you don’t need to find success overnight.
Therefore, it’s important to manage your expectations around real estate investments and think long-term. Thinking long-term implies gaining from the past to more likely envision what’s to come. When deciding where to buy in Philadelphia, consider the potential of the area and the property in 5, 10, or even 30 years’ time.
Look at what developments are looming, what’s nearby, and what the trends are for sales and rent prices in the area. Consider joining our Investors List to become a home buyer in Philadelphia.
2. Network, Network, Network
Networking in Philadelphia is a lot harder than people think. But it’s absolutely essential if you want to succeed in real estate. Even though there are lots of buyers in the market, most commercial sellers only work with, or approach, people they know.
Getting to know people in the business is the best way to build relationships, stay in the loop about new investments, and grow your own knowledge. When networking as a newbie investor, it’s often a great idea to find a mentor you can learn from and grow with.
The best way to network in Philadelphia is to attend meetups. Visit your neighborhood REIA (Real Estate Investment Association) and find out when the events take place. Your goal is to find out who is doing what you want to do and talk to them. Ask them which realtors they use, and what wholesalers are doing most of the deals.
Tell everybody you meet what you’re searching for (in terms of the type of investment properties). Give them your contact details so they can call you when something comes up. Figuring out how to find strong investment property in Philadelphia is not the hard part. Connections are! But they can be a key component in getting the absolute best deals on properties that nobody else can find in the Philadelphia Pennsylvania market.
Remember, when considering who to connect with, try to find:
- Top investors in the area
- Land appraisers (so you can find out prices and market fluctuations)
- Property wholesalers in the neighborhood
- Local and regional property flippers
- Title agents who manage properties for the top investors
3. Clearly Define your Goals
A goal resembles numerous different parts of life. Naturally, people who are the most centered, with clearly defined goals, tend to succeed the most. You need to discover your strengths before entering the real estate market. There are many ways to make money in life, but you must play to your strengths and leverage others in areas where you are less strong.
Defining your goals and your own strengths will make networking much easier and more beneficial. For example, some people have expertise in private condos, while others are well-versed in managing retail. When you combine your knowledge and the knowledge of others, you can break down the various sections of the market to see which openings are really the best for you – and not simply the best showcased.
When you know what you need to possess, you can find people who fit those roles. This helps you hit your goals and purchase an investment property in Philly. This takes a ton of work, but it’s worth it in the long haul.
4. Leverage Technology
Staying in the loop is significantly easier with technology on your side. Leverage technology, and be ready to jump when the time is right. Joining virtual forms, mailing lists, network groups, and events is an easy way to find people, get your name out there, and expand your network.
For example, you can join our investor list of off-market deals, and we will inform you immediately when we locate a good investment property. You can also work with realtors and get automatic notifications sent to your phone when good deals come onto the market.
Thinking About Investing in Philadelphia Real Estate?
At Brotherly Love Real Estate, we specialize in sourcing good deals in Philadelphia. If you’re looking to fully dive into Philadelphia investing and put resources into the City of Brotherly Love, we’d love to talk with you and become familiar with your goals, interests, and criteria.
Remember, investing is a long-term game. Don’t put too much pressure on yourself to get it all figured out in one day. Make progress each day, and progress will pay itself back to you. Want to know more about how to determine a good investment property? Call us anytime for questions on investing in Philly PA, and to see what is going on in the market today, at (215) 326-9208.