Once you’ve decided on a budget, if you want to invest in properties that are geographically desirable and know what you’re looking for, you can start preparing your lists. You will need multiple lists that each serve their own unique purpose. I’ve also found it super helpful to have your lists accessible by your mobile device so you can make changes while you’re in the field. Personally, I use Google Sheets because it’s very easy to use, mobile friendly and easy to share with others. Microsoft Excel or other spreadsheet software can get the job done as well.
The lists you will need:
- Properties to ignore
This is a list of items that don’t match your criteria. Put them in this list and never look back. You’re better off not winning a bid than to get desperate and refer back to this list looking to land a Hail Mary.
- Wish-list properties
These are properties that are typically out of your price range. They aren’t bad, you just save them for last in case you have the time to go view them.
- Parcels to drive
Every property you plan to bid on needs to be visited and evaluated in person. This is the list you will use to schedule your routes from. If an item doesn’t make this list, it shouldn’t be on your mind. As you’re out driving properties and performing your due diligence, you’ll find that many properties don’t need to stay on your list. If the property looks like the numbers can work, move it to the bid list. Eventually, you’re going to find a property that doesn’t match its listing. It might be difficult to locate or the wrong owners listed or any other issue. These properties will need additional research and should be moved to your further due diligence list.
- Items to bid on
These properties will end up getting the most amount of your time and energy. Everything on this list has been deemed to be worth buying. As such, it should be an exclusive list of properties that gets sorted by priority. The way you determine the priority for each property is a personal preference. When I’m prioritizing my list I organize the parcels by the date/time that the auction closes on. From there, I prioritize each day by the properties that have the most earning potential in the shortest amount of time. This allows me to make quick decisions as the auction comes to a close.
- Listings that need additional due diligence
Properties on this list will be your last priority. If you find that a property on this list requires too much effort, it will most likely give you nothing but heartache in the future and you should probably avoid it. Alternatively, if it’s hard for you, it’s probably hard for everyone which is great because it drives the competition way down. Never give up on this list because you may find some of the best diamonds in the rough here.
I hope this information helps and next I’ll be discussing how to evaluate those properties… thank you again for reading and for being a part of the TAI Community!