12 STEPS TO BUYING A RENTAL IN 2020
Sep 29, 2020
Many people aren't sure where they should place their focus, or what exact next step they should be working on to get deals. Especially in a crazy market like we're experiencing now.
So, I've broken down, at a high level, the 12 steps to follow if you really want to get straight to your first/next deal.
WARNING: This list is for action takers only! It won't be comfortable to execute this, but it WILL work.
1) MINDSET - work on your confidence, vision, goals, as well as monthly, weekly, and daily plans. Meditate, visualize, connect with your why.
Skip this step and everything else will suffer. You won't have clarity or confidence or focus. You might still succeed, but you'll make it harder on yourself.
2) MARKET - you must pick the market in which you will invest.
Everything hinges on this. You need to know where to build your team, look for deals, find lenders, make connections, etc. You also need to pick a market that's actually realistic to invest in given the current climate. Many people F this up, I did as well.
3) TEAM - build your "starter team" which really only includes contractor and property manager.
4) MARKETING - create a predictable flow of new opportunities (deals to make offers on)
This can be from a variety of sources, and it hinges upon picking a good market to begin with. Many people are stuck here because they have no opportunities.
5) MONEY - understand what financing options you have. This will affect the offers you make. You need to know how you will buy the house initially, and also how you will transition into longer term money. Have a financing plan. Talk to the necessary people to ensure you can get a loan if needed.
Many people are stuck here - not because of lack of resources - but simply because they are just CONFUSED about their financing options. And when something is confusing or overwhelming, it is our natural tendency to turn away from it.
6) BUSINESS SETUP - separate bank account, decide on LLC/personal name/trust, and also acquire some good software for deal analysis in your area
7) ANALYZE DEALS - as opportunities come in, analyze them. This is the work. It's like the "wax on wax off" with Mr. Miyagi. You gotta get some reps in to become savvy. Looking at deals regularly and learning how to analyze them (and determine what you would offer) IS THE REPS.
8) MAKE OFFERS - there's really not a single more important action than this. If you make zero offers you get zero deals. Every success or failure can be linked to the amount of offer making that went on. You must actually communicate to the seller that you are willing to buy the house and your offer amount.
9) DUE DILIGENCE - you must use an airtight process to ensure that you actually want to buy the house.
Inspector/contractor/property manager will be the team of experts you will rely on to make an informed final buying decision here.
10) RENOVATE - you must use an airtight process to manage your contractor to protect yourself and arrive at the desired outcome, on time, within budget. It won't be perfect. But there's a process to use here to make sure you don't get screwed.
11) RENT - handoff property to prop mgr with final instructions and let them take it over. It is now THEIR job to make your property perform. So chill out.
12) REPEAT - now literally go back to step 7, and start from there and take the next deal through steps 7 - 11. That's it. With each deal it gets easier and easier because your processes and your knowledge improve. Repeat until you have the desired amount of passive income and then you're free ;)
Now, what questions do you have?
Shoot me a message here:
http://www.m.me/brianellwood.com
