One of the key elements of any real estate investment is going to be deal evaluation: every time that you are going to be purchasing a property - whether you’re thinking about a condo or townhouse, single family homes, professional buildings or multifamily properties - it is going to be important to evaluate the deal. The challenge is that, ultimately, deal evaluation should not be about whether or not you can afford the properties that you are looking at.
Deal evaluation, after all, is about determining whether or not the property that you’re thinking about purchasing is going to help you to reach your long term financial goals - your long term business goals - not about whether or not you have the funding to get the deal to go through. Financing your real estate investments, it important - it’s something that you’re going to need to do and to have in place - however, financing should never be the key determining factor in whether or not you move forward.
When you’re evaluating the deal, you should be looking at your goals. You should be looking at the market in the area. You should be looking at projections for the rental market or for business in that area (if those elements will affect your business). Financing is a completely different element; it’s the deal evaluation that will help you to determine whether or not to make a move.
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