Rental properties are such a powerful investment, but like anything else it is not foolproof – you need to know what you are doing otherwise things can go awry.
The good news is the process isn’t rocket science. I want to share three simple steps you can use to purchase rental properties and begin benefiting from the best investment vehicle out there!
3 Steps Anyone Can Use to Purchase Rental Properties
1.) Line-Up Your Financing
There are myriad of ways to finance a property. I have used many and am yet to use others.
- 20% Down Traditional Loans from the Bank
- Seller Financing
- Partnering with someone to raise the down payment
- Lease options
You get the idea….there are many ways to finance a property. I get frustrated when I hear people say they can’t invest in real estate because the bank won’t give them a loan. I haven’t used a traditional when financing half my deals.
2.) Find a Deal!
You want to determine a few things as you begin your search.
- Select a Market
- Get Leads
- Analyze the deals
Sounds simple, right?
There are many reasons to select a market that are unique to each of us, but I can say finding areas where population growth exists, employment rates are steady and crime rates are below the national average always makes for a winning recipe.
As for leads – you can explore options such as using a realtor, getting on a wholesaler’s buyer list or doing direct mail marketing. Oh, and word of mouth still works too!
When it comes to analyzing deals you better be using the property calculator to ensure you buy right and the property cash flows. If you don’t know how to analyze a property and buy right then all I can say is it’s time to consume the ScaredyCatGuide to Investing in Rental Properties Videos.
3.) Buy the Damn Deal!
Yup, all step three takes is executing the first two and then pulling the damn trigger.
Don’t try to invest in real estate.
Don’t say I want to invest in rental properties.
BE a rental property investor. DO IT.