In order to gain real estate investment experience, in June of 2013, Edward Banay began searching for a small income-producing apartment building around Back By-Beacon Hill area, which he considered the best residential part of downtown Boston. Although Banay lacks real estate experiences, he did something very well in his investigation and approach to this acquisition. For instance:
* Market Research: he spent all his free evenings and weekends becoming familiar with the area. Checking the demographic data on age breakdowns, education, employment, marital status, income, and many other important relevant issues of present Beacon Hill residents, figuring out maps for distances to the city’s office, shopping, cultural and entertainment centers, and searching for other useful resources online, these market researches all shows that Banay were very enthusiastic and had a good start of investing.
* Good insight: more specifically, targeting to Beacon Hill area, Banay discovered many advantages very quickly. For example, he found out the considerate natural advantages of the area, and the reason why buildings maintained or even slightly increased in values despite the dramatic housing downturn that had affected most of the United States in 2007. Moreover, he believed that the activity and interest in this area, which had driven prices up and was maybe a disadvantage in his attempts to buy a property, would turn into an advantage once he owned a building. Furthermore, although it implies some disastrous consequences, it also could be a good point for learning that he would have to act very quickly if he did find an attractive opportunity.
Besides something did well, Banay still was a young, inexperienced guy who just started investing. He made some mistakes in his investigation approach without hesitation.
* To begin, Banay’s full-time job was his prime responsibility. Spending only at evenings and weekends probably makes his work less efficient....