Tell Me What To Do!
Let me take a minute to review the basic steps to start investing (if you’ve been reading around this site, this will be review for you). Keep in mind, some of this may not apply to you, it is just the route MOST beginner investors follow.
*Find a lender to work with. This should be someone you’re comfortable giving all your personal financial information to. They will enter that data into their special software and tell you approximately how much you can borrow and which types of mortgages might be best for you.
*Find a Realtor to work with. I recommend taking some time to find one that also invests in real estate because over 97% of Realtors DO NOT invest. I know - seems weird, doesn’t it? Most Realtors just help people buy and sell their homes. They have no experience advertizing rentals, placing tenants, doing background checks, managing or maintaining rental units. And I recommend you find someone who CAN answer all your questions and walk you through the process.
*Take some time to tell the Realtor what your MAIN goals are. Based on this, they can begin to assess and make a recommendation if you should be looking at single family homes, plexes, apartment buildings, or possibly even some commercial/industrial or lots and land.
*Look at units. Whatever your price range and location, start getting out there and looking. Once you get a feel for what’s out there and what you can buy (within your specific budget), you’ll begin to narrow in to your favorites. With my clients, I recommend that they see at least 10 - 12 places before any offers are placed.
*MAKE AN OFFER. You’ll never get anything if you don’t make an offer, right? Don’t get caught up in “analysis paralysis” as it’s easy to do on your first one. There is no ‘perfect’ place, so just narrow it down to your favorites.
*DON’T SKIP THE LAST STEP! Your favorites may be other people’s favorites too, so offering sooner than later is wisest. I know that can be one of the more intimidating parts of the process, but your Realtor will walk you it all. The best places at the best prices will have multiple offers on them, that’s just how it goes.
*Once you have an accepted offer, you’ll close, get the unit rented & start collecting rents. The specifics of this process will be based on the location & type of units you acquire. Don’t get stuck in over-thinking it or getting ahead of yourself. During the time between the accepted offer and closing (average 30-45 days), you can tackle the advertising, get set up to do background checks and find a lease you like to use.
