A buy box is a tool real estate investors use to determine the types of properties they want to purchase. The buy box is usually broken down into columns and details the criteria a property must meet to be considered for purchase. This tool helps real estate investors focus on their goals when analyzing potential real estate deals.
The buy box can consist of standards that are important to the investor. Common criteria may include, but is not limited to location, prices, property type, size of the property, or age of the property. This simple tool helps real estate investors focus on certain properties. If a property does not meet the criteria in a buy box, the investor knows to move on to another project.
The buy box is used as a filter to focus on properties that a real estate investor is truly interested in. Defining the criteria of a buy box also helps investors avoid being overwhelmed by an abundance of real estate opportunities.
The image above shows an example of a buy box. In this example, the real estate investor wants to focus on acquiring small apartment complexes in Houston, TX or Galveston, TX. If a deal presents itself for a property in Dallas, TX our investor may pass on the opportunity because it does not fit the criteria in the buy box.
While a buy box is a useful tool, it can be changed as the investor maneuvers the real estate market. It can be adjusted to redefine goals as a business or investment portfolio grows. Creating a buy box is a great way to stay focused and possibly achieve real estate investing success.
Need help creating a buy box? Download your buy box template HERE!
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