3 Tips to Find the Best First Real Estate Investment Property
Congratulations! You’ve decided to become a real estate investor.
You’re going to love your flexible schedule, passive income and stable cash flow. I know I do!
But we’re getting ahead of ourselves. First things first. You need a property! Here are 3 tips to help you find the perfect first real estate investment property:
Network
Did you know that not all properties for sale are listed online?
You can scour the internet for hours looking at properties for sale, but you’ll still only see a fraction of available properties.
Not only is this method time-consuming, but stats show that purchasing an off-market property will get you a better purchase price, easier negotiations and less competition!
The best way to find off-market properties is through your professional network. Real estate agents, other investors, your mentor- they have all likely heard of properties for sale that aren’t listed online! Talk with them to see what kind of unique deals they know about.
Know your market
Location is everything when it comes to real estate investment. You can find an amazing property, but if it’s in the wrong location (i.e. one where there are no buyers or renters), then you won’t be able to make any money on it.
So, how do you find the right location? By learning your market. Take a look at these factors:
1. The average cost of rent: The best way to calculate whether a location will yield you profitable rental income is to determine the area’s average cost of rent. By seeing what others pay for rent in the area, you will be able to calculate what your potential clients will pay and then you can determine your ROI from there.
2. Home values: In order to make a high ROI, your property must appreciate in value over time. Take a look at the values of homes in the area and see if they have been increasing, decreasing or remaining steady over the past few years. Then, factor in all of your costs (insurance, maintenance, property taxes, etc.) to see if purchasing a property in that area will be worth it.
3. Population growth: If the population is on the rise, that means more people will be looking to rent in that area. This means that you’ll be able to find renters relatively easily, whereas if the population is decreasing, you will have less applicants.
This is a lot of research to do on your own, so I suggest using a software that can give you the results you need fast. TPN Credit Bureau’s Investor Report is a fantastic resource.
Find investors
Once you find the perfect property to invest in, it’s time to get to business. How are you going to fund your investment? Many beginner investors believe that they need to pay for their investment on their own dime. That’s simply not the case.
Working with other investors can help you secure a deposit and pay for other closing costs like appraisal fees, taxes, deed-recording fees, etc. Here are a few ways you can find investors.
So...are you ready to get started? Before securing your first investment property, it’s important to find out what kind of investor you are. Take this 10-minute survey to find out!
From there, you can book a call with us and get in touch with some of our students who can source you great deals!
Want to work smart, not hard? You can learn more about real estate investment by downloading my FREE ebook, checking out my blog or contacting me for a 1:1 consultation.
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If you’re ready to take the next step in your real estate investment journey, I would love to help. I have created a no-nonsense course that can help you go from beginner to profitable real estate investor in the next 90 days. Click HERE to find out more!
Interested in learning about how to invest in real estate with no money down? Grab your copy of my ebook How to Invest in Real Estate with No Money HERE! I am giving it away for FREE! In it, I reveal my proven strategy to building wealth through real estate investment without spending my own money. This strategy includes several of the income streams I created without paying any money down.
So- are you ready to start building wealth through real estate? If the answer is “yes,” then it’s time you followed these steps:
1. Register for my upcoming live stream