8 Steps To Buying Your First Rental Property

hey what's up guys I want to give you 8 simple steps to land your first real estate investment property stay tuned [Music] what's going on everyone my name is Brandon Turner hosted the BiggerPockets podcast and author of the book on rental property investing and a bunch of other books and today I want to lay out a very simple strategy for getting your first real estate deal or maybe have you done them before your next real estate deal so I had this conversation another day with a new investor somebody's looking to get into real estate and we talked about a lot of stuff over about an almost an hour time and at the end of the conversation you know what they asked me I said Brandon can you just simplify and just give me like step 1 step 2 step 3 to get my first deal done and I was like alright I think people can appreciate that let's just get real simple here so today I'm gonna lay out eight steps that you can follow and if you follow these steps you will become successful in real estate I guarantee it you ready for this all right now if you like these steps make sure you do me a favor and click that thumbs up button below the video let's get going number one educate yourself so you know exactly what you want to do you know a lot of times we think that with the path is really complicated and difficult to get something done but in reality our lack of action or our lack of movement is simply because we have not decided we've not decided what we want to do and so the first step is to gain a basic general education so you can decide what did you want to do now in real estate you've got a lot of options it's one of the reasons we love real estate investing you want to buy giant skyscrapers you can do that you want to buy simple little houses you can do that you want to buy a mobile home you can do that but I have a mobile home park business right now we buy mobile home parks who does that I do because it's fun and so you can choose what you want to do but the key is you've got to decide you've got to make that decision if you don't have a very clear idea of what you want to do you're just gonna keep wandering around and wandering around it's like looking for a job if you don't know any idea what kind of job you want weird even start you start having the conversations you need to so it's really really really important that you decide what you want to do in the way you get that is through a general education the best way to do that I would recommend podcasts are excellent even let's do an interview style podcast like the BiggerPockets podcast with seventy five million downloads or any interview style real estate podcast listen to the stories of other people and look for stuff that just resonates with you that makes you get fired up and says yeah that's what I want to do maybe you want to do the BRR strategy which is one my favorites or you want a house hack or you want to I don't know buy one rental house every year for ten years whatever your strategy is step number one is to get a basic education so you can define exactly what you want step number two I want you to practice the math over and over and over for that type of real estate deal until you're an expert at it I believe that knowing how to analyze a deal is the number one number one most important skill a real estate investor can have I mean the great thing about real estate is that unlike the stock market or most any other investment in the world starting a business doesn't matter whatever you really don't know how it's gonna turn out but in real estate you can get really accurate predictions on what the future looks like because we know what the general water bill of the property is we know what the general cost of electricity is gonna be on that property we know what a property's gonna rent for those are all questions that we can answer so when you know how to analyze those deals you can see what next year looks like in profit the year after 20 years down the road now is it gonna be perfect of course not but you can get a pretty good estimate of what your future looks like therefore when you know how to do the math really really really well you can find great deals avoid bad ones when you have great deals you can bring in partners you can find more money you can get easier financing you can make earlier retirement happen those are all the benefits of knowing how to analyze a deal so spend a lot of time doing that and if you want to get in a real life example of me analyzing a deal I'm actually doing a live webinar this coming week over at BiggerPockets concise webinar we're going to analyze a real-life deal together with you from one a year market so BiggerPockets concise webinar I'll hopefully see you there moving on step number three start looking for deals online this kind of relates to said number two they deal analysis but I want you to go to like realtor.com or zillow.com or redfin comm and just get deals to practice start running the numbers in fact I would recommend like do one deal a day if you just set a goal of doing one deal every day it's kind of like working out like if you just worked out every single solitary day you'd understand every machine in the gym pretty soon you'd understand how it all works you'd build up my momentum and you'd start getting in shape and so the important thing is the consistency so start finding one deal every day that you can just find online and don't even worry about buying it in the beginning just get good at get it running the numbers which was step two and finding those deals online which is step number three again it doesn't have to be good deals you're just getting your reps in right now alright step number four get a real estate agent and have that agent set you up with automatic emails for whatever criteria you've defined you've already remember the step one to find what did you want so if you're looking for duplexes or triplexes great have your real estate agent set you up with automatic emails for the type of property you want not only are you looking online for deals but now you've got actual pipeline you've got a pipeline of deals coming in to your inbox that you can start running the numbers on because here's the truth about real estate guys this is so important fundamentally important every property out there has a number that could make it a good deal everything this house that house that house every house every property has a number that could make it a good deal so your job as an investor is not to blindly walk around trying to find some mysterious great deal that nobody seems so found your job is to go out there and just find leads which is what we just talked about get them and analyze them to find out how much you can pay for them and then look maybe maybe your number is close to what they're asking maybe not but your job is not to go and land a deal your job is to work that process over and over and over which brings me to step number five go get pre-approved from a lender now there are a lot of ways to buy real estate especially if you want to get creative with it and use other people's money I mean I wrote an entire book called the book on investing in real estate with no and low money down and I built most of my portfolio using other people's money that said if you getting started go get qualified or pre-approved for an investment loan it's probably gonna be 20 or 30 percent down if you don't have that money then you're gonna need to get a little more creative but either way Step five is go to a bank or a lender and go try to get pre-approved maybe you'll get it maybe you'll find out that you they have some cool bank loan that'll let you do it for less money down or maybe you'll have to do something more creative but either way you'll know because you went to that lender and had a conversation so step five is go find a lender or a bank and have a conversation now if you're on bigger pockets go to the network tab and in you hover over Network and drop down it'll actually have a spot for find a lender and bigger pockets actually work for the number of different lenders that understand real estate investment strategy so I highly recommend checking that out alright step number six this relates back actually to a similar thing we talked about earlier but I want you to do it again it's start analyze in one deal every day you understand that this is not very complicated process we're just getting leads and we're analyzing them but now that you're pre-approved or at least have an idea of how you're gonna finance that deal now I want you every single day to analyze one property no matter how you get the lead every single day analyze one property which move on the step number seven make an offer once a week once a week make an offer because you've analyzed seven deals that week so find the one that's closest to whatever it is they're asking and make an offer because you know how much money it costs to make an offer nothing it's free to make an offer so why not ask a lot people are so afraid of making an offer in fact when I talk to new investors all the time they tell me I can't find any deals the question I always ask them is how many offers did you make this week you know the answer always is none well of course you're not getting any deals you're not making any offers it's like the guy who's like you know sitting at home at 50 years old without a girlfriend or wife saying I can't find anybody I'm like well have you ever asked anybody out well no well there's your problem like you're not gonna get the results you want if you don't go out and pursue those things that's why step number seven was start making one offer every single week and step number eight repeat step six and seven analyze offer analyze offer until you land a deal I said earlier there's a guaranteed process that's what I mean by it if you just repeat step six and seven over and over and over analyze make an offer and you're gonna get better you're gonna find out how to get better leads you're gonna get better at the financing you're gonna find people that can you can work with but as long as you stick with that find leads and run the numbers on them and make offers you're going to get the deals you want long term that's it don't confuse yourself just figure out what step you're on of those eight steps right now and get to work on it like right now like make this the last video you watch today go out work on your business and hey if you enjoyed this video make sure you give me a thumbs up button below the video and be sure to LIKE comment subscribe all that good stuff and if you want to follow us on instagram at BiggerPockets and i'm personally at beardy brandon for BiggerPockets comm this is Brandon Turner signing off [Music] you

Channel: BiggerPockets

Views: 297,090

Rating: 4.9449348 out of 5

Keywords: biggerpockets, real estate, real estate investing, investing, rentals, rental property, investing in real estate, bigger pockets, brandon turner, buying rental property, buying rental property for beginners, buying rentals, rental property investing, rental property investing for beginners, how to buy rental property

Id: u83O2l1QEj4

Length: 9min 58sec (598 seconds)

Published: Tue Jan 28 2020