Investing in St. George, UT
They have very clear goals for their investments
Time Frame: A savvy investor has run the numbers and they have a time frame for how long they are going to hold a property based on the next two goals.
Expectations: They will have a realistic approach to the future appreciation and those expectations will typically be based off of logic and data. They are not trying to hit a home run each time they step to the plate. Instead their plan includes a lot of times at the plate and a continuous flow of base hits.
Performance: Ask a great investor what type of performance they are looking for and they will tell you EXACTLY what works for them. They have this down to a science, because if the performance works, the expectations work and their time frame for owning or flipping is met.
They are logic based and unattched
The Property Fits the Plan, Not Vise Versa: Experienced investors create a plan that is profitable and then find a property that will fit the plan. Novice investors put a plan together that is based more on the type of property they think they want and they try to create a solid investment plan for a bad investment property.
Knowing a good investment: They understand that holding a bad investment does not make it a good investment. If a property is good at the beginning it will perform well and be profitable when it is sold. A property purchased wrong will always be wrong.
Make decisions on THE NOW vs. THE POTENTIAL: In past markets, investors lost site of the current performance and made decisions to buy based on the potential for future appreciation. For a period of time, it worked.
Plans for the DOWN vs. hoping for the UP: Now a buyer/investor buys a property that makes sense today, plans for and is ok if there is a downturn in value, cash flow, etc. in the future and does not include potential appreciation in their strategies. If it happens, it's simply a BONUS.
Has exit strategy B and C for flips: When a novice flips a property, they buy, improve and try to sell. If any of the variables that are typically out of the buyers hands change, the flip doesn't happen and there is a significant risk in losing money. Savvy investors will buy properties to flip, with a 2nd and 3rd exit strategy if the flip doesn't work.