So why use systems for real estate acquisitions? The reason you want to use systems for this is so you don’t miss any steps in acquisition process. You must account for everything because the only thing you control in real estate is what you pay for it. Once you've purchased a property, you have very little influence on costs moving forward (vendor costs, vacancies, acts of God, etc.). You can’t prevent a hurricane, for example, and you can’t know whether or not your tenants are going to stay. But you can measures to assess risk, so that you have a better idea if these events will occur.
That's why acquisitions is the most critical part of real estate investment.
If you buy right, you’re setting yourself up for success; if you don’t buy right—which means overpaying for something, having bad terms on a loan, or you don't do your homework (aka due diligence)—you’re setting yourself up for failure every time.
In short, using systems provides you with the greatest likelihood of making a sound investment.
Which systems do you employ for acquisitions?
In my experience, I’ve found six major steps in the acquisition process. Let me share those steps with you and practically how I carry them out with systems. If you take these steps and apply them to your business, they will save you time and money—and some headaches, too!