How To Invest In Real Estate As A Beginner

How to invest in real estate for beginners. I've been asked by so many people on social media, that if you just start over today, you want to go buy rental property. What would you do? Right? What kind of tips can you give us? Or, you know, I'm young that I want to start buying rental. What are the first step? What are the second step? Well, today's you guys, I want to actually make a video and go deep and give you 10 things you need to know and do to actually own your first rental property. Number one, get your money ready. Look, if you're going to go buy a house, especially if you're a first time home buyer, the best thing you can do is this. You can buy a house as a primary, do like a three and a half, 5%, basically FHA. You can actually buy the primary, and then you can house hack it. You can actually live in one room, right? Rent out multiple other rooms to other people or live upstairs, rent the basement out. Or if you got even some money, buy the main house and then convert the garage to an ADU. You can buy houses as a first time home buyer and an investment property. Okay. Which is all within one house hack with three and a half to 5% down, but you got to get that money ready. Look, my first job was working at a grocery store. Okay. I made my money there. So whatever you do for actually making earned income, stack your money. So get that thing ready and then be ready to buy. Number two, get pre-approved. Go talk to a loan officer to get pre-approved if you haven't done it yet. That's the first step when you go buy any house. I don't care if it's a primary house or you're going to house hack and do your first rental property. Okay. You got to get pre-approved. They're going to check and they're going to see what's your credit look like, how much your income is, what's your debt to income look like, right? They're going to have to get you all aligned and it'll tell you how much money you need, what your monthly payment is going to be. And they're going to tell you how much you actually qualify for as a purchase price. You need to know all this before you go out there and start shopping around. Number three, you got to understand and study your market area where you're going to buy your rental property. When I started owning rental property, I knew I wanted to work what I call the South Seattle market. And I knew I wanted to work in this area, this area and this area to buy rental property. So what I did was I wanted to know everything about that area. I want to know basically what homes are selling for as is. I want to know what home is selling for is already nice. I want to know what kind of rent can you get for a two bed and one bath? What kind of rent can you get for a three bed and one bath? What's the difference in rent? Also I want to know what type of demographic renter there's going to be in those area, right? Are they high maintenance renter? Are they actually easy going renter? Are they more sophisticated renter? I want to know all that. So when I actually buy in those area, I know exactly what I'm dealing with. The best way to do that. Okay. If you're an agent, you can check the MLS. If you're not an agent, you can actually check Redfin. Are there more rental property? Are there more ownership property in those area? Are people live there? And also check Craigslist and rental meter. It tells you a little bit about what kind of rent you can get for those area for a two bed and one bath, three bed and one bath, you know, for a townhouse for a luxury home. You got to know what type of property you want to buy. You want to buy nice luxury houses for rental, or you want to buy something simple. And here's a tip for you. Never buy a luxury home as rental property. They're not a good investment. Everyday home are good investment. Number four, another best way on how to go look at comparison is go to open houses. For example, let's say this house here, if it was an open house, if I actually come to the open house, I want to look to see what kind of street appeal does it have? If it has a good street appeal, it's going to be easier to rent, right? What kind of style home is it? Is it a mid-century home? Is it a craftsman home? Is it a one level home? Also we're looking at the condition. Uh, you know, is it something that I have to fix up, which I don't mind. I don't mind buying a home that I need to fix up, but you got to make sure you understand I'm buying a fixed upper to make it look nice or I'm buying a moving condition home. Then also look at the yard. Is there a lot of yard? You don't want a lot of yard for rental property because you know why? Most tenant ain't going to maintain it. Okay. You want something that's low maintenance. And then on top of that, when you go inside, ideal for a rental property, you want to get at least three bedroom on the main floor. If this house is a three bedroom plus, try to get the least three bedroom on the main floor, one in the basement. You don't want the two up and two down because if a house, if a husband and wife, they have themselves and they have two kids, one of the kids has to live downstairs, which is not a good rental property. Okay. These are the things you can look at when you go to open houses. And you can also see what type of finishing is in these houses and what they sell for. This is how you have good idea of market value. Number five, get familiar with the rent is in your area. Look, when you decide where you want to buy your rental property, you got to start studying the rent. If you've got a three bedroom, two bath, one level house, a thousand square feet, trying to find similar houses that's for rent. If you've got a three bedroom, one bath, one level, you can't compare a three bedroom, two bath, two story home. Now they ask a little more and you take a little less. Okay. You can't compare a three bedroom, two bath home that is actually super nice. And yours is dated. If they're super high, you're going to drop your price lower. The best place to find rent go for is Facebook marketplace, Trulia, Zello, even Craigslist. If you check those, you have a real good idea what rents are going for. And then you compare what you got to other people and try to make yours at least a tad little cheaper than somebody else or make your much more nicer. So you can get actually more money. Number six, start picking up more knowledge about real estate investing. You can learn from a lot of people. I have many, many, many mentor around real estate. I was coming up and I still have mentors today that teach you how to invest in real estate. So you learn from me also. Okay. But go look for other people also. There's so many books out there right now. There's so many podcasts out there. There's so many YouTube videos. There's so many on Instagram. Go watch everybody and see what they have to say about owning real estate. Now remember, follow the people who actually are talking about owning real estate. Okay. You don't want to follow someone and listen to the advice when they're talking about don't own real estate, just fix and flip all the time. That's not the mentor you want. Okay. So Robert Kiyosaki talk about a lot about, you know, buying rental property, right? That's the kind of mentor and teacher. Make sure whoever you are listening to that they actually have walked the talk and done it and teach you how to own real estate, not sell real estate or flip real estate. Number seven, build your A team. Look, as you are just beginning to actually start owning real estate, you got to start looking and start building your A team. Now what consists of A team? Number one is a general contractor. Okay. After that, you're going to need people like inspector. You're going to need people like architect. You're going to need people that does hauling. You're going to need people that actually does dumping. You're going to need landscaper. You're going to need a harmony lender person on your team. You're going to need a traditional take out lender on your team. You're going to need a bookkeeper, CPA. These are all the different people that you're going to need to start building your team. Now, how do you find these people? I'm going to tell you how it is. It's really all through referral. You got to ask one person and that person probably know a bunch of other good people they work with, and then you're going to start building your team. Remember the stronger your team, the less headache and the less risk you're going to go through. The worse your team is, the more headache, the more risk you're going to have. So take the time to build your team. Okay. Number eight, find a good realtor that you can trust and work with to help you find your first deal. Remember, we're talking about how to find your first investment property or a house hack. Remember if you haven't owned a house yet and you actually haven't owned a rental property, the best thing to do is buy a house that you're going to use as a primary and then rent out the room or the basement or put the ADU in the back. Okay. As a house hacks, you can offset your mortgage. So typically you can actually have a real estate agent go out there and find these home on the MLS for you. Okay. Now make sure whoever you use as a realtor, they understand also how to invest themselves. That would make them more helpful because they understand exactly what you're looking for. They can know exactly how to actually help you find these type of deal. Okay. Now, if you also don't know a realtor, right, you can ask other people to say, Hey, where do you find a realtor that understand how to do real estate investing? And someone will give you one of those referral. Okay. Also go to real estate investment group in your area, go to those kind of events where you can actually find other investor. There's a lot of investors out there that are called wholesaler. Wholesaler people go out there, find these houses, they don't buy them to get it under contract. And then they sell these contract to other people to buy. So you can actually buy a home that way also, but a realtor and a wholesaler, they can actually help you find the deal. And remember, you're a first time investor, right? Buy the house. So you can live in it and you can rent out the bedroom and so forth. Number nine, surround yourself with other investor, who you hang out, who you become you guys. Look, if you want to actually become a millionaire through real estate investing, go find a lot of other real estate investor who actually have done well, who are millionaire and hang out with them. If you're going to actually investing, right? You want to start going to a lot of different seminars, a lot of different events, go to meetup group where a lot of other investors are at and start to hang out with them. When you meet them, ask them how they got started. Ask them what was their first house they bought. Ask them how did they actually grow their portfolio from one house to 10 house to 20 house. When you hang out with these folks, there's going to be a very high chance that you're going to be very successful because again, who you hang out, who you become. And number 10 mentorship. Look, I'm a big believer. You got to invest in yourself. I'm a big believer that if you want to get to the top faster, you talk to someone or get mentored or coached by someone who's already have walked the path and is already doing it. So even for me today, I have a mentor around fitness. I have a mentor around mindset. I have a mentor around financing. I have a mentor around real estate investing, commercial real estate. I have a mentor for a lot, a lot of these categories. So if you want to actually speed up your process to get to the top faster and make less mistakes, I'm a big believer. Go and spend money and invest in yourself so you can actually get a mentor so you can actually learn faster than trying to learn on yourself. Like for example, when I say put together an A team, look, just someone helping you put together an A team, all the referral, just having the right A team is going to help you massively. If I help you actually how to go find the right type of property, the right design in the right location for the ideal rental property, you're going to buy the right property. It's going to appreciate well and it's going to cashflow and you have less risk. So I'm a big believer. Okay. You get what you pay for. So if you want to learn fast, invest in yourself and get a mentor to help you. Now, if you actually want to get started, you're inspired, you're excited, you want to get into your first rental property. Look, all you got to do, click the link below and watch my free training. Okay. So you got to get started. I tell them, you guys, this is a wrap. I appreciate you guys. If you like the video, give me a thumbs up. Are you having any thoughts of conflict comment below and remember, hit that subscribe button. All right. I'll talk to y'all soon. Peace out.