The Ultimate Beginner’s Guide To Real Estate Investing – The ULTIMATE Beginner's Guide To Investing In Real Estate Step By Step
The Ultimate Beginner’s Guide To Real Estate Investing – Most Popular?
So you want to start making money investing in real estate? Well, you’re in the right place! Welcome to the best primer to get you on the fast path to making your first dollar in real estate.
If you prefer reading along while watching this video check out the in-depth article on Millennial Investments at https://bit.ly/341EuTf. 😎
11 basic steps to get started investing in Real Estate
1.) Boost your Credit Score 📈
Having a high credit score is an essential first step to ensure you’re in a position to get great terms on financing. Take steps well in advance to get the highest score you can.
2.) Smash the Like Button 👍
Trust me, it helps to support the channel and the YouTube algorithm gods love it.
3.) Save the Down Payment 💰
Save all the money that you can. Most homes require down payments between 3.5% and 25% down depending on the lender and loan program. If you need help saving up for your down payment, try finding ways to boost your income by using cashback apps and secret shopping. These two ways are great to help you reduce your expenses so you can save more cash!
4.) Show Proof of Income 📑
Proof of income is really important. Your tax return for the previous few years is even more important. Lenders are looking for you to make money legally to calculate a debt-to-income ratio. A debt-to-income (DTI) ratio is a metric that banks use to calculate the risk you are as a borrower. It’s calculated by taking your monthly mandatory debt payments and dividing them by your gross income (before tax). The lower the DTI ratio, the better. Having a lower DTI gives you more breathing room in case of emergencies.
5.) Get a Pre-Approval Letter 🧾
Assuming you check all the boxes for the bank’s point-of-view, they’ll send you a pre-approval letter. This letter allows you to start shopping! It is a commitment from the bank that they are serious about lending you money and lets the real estate agents you will work with know you’re serious about buying a property.
6.) Understand your Market 🌎
Take some time to better understand the market you’re buying in. Where you buy your property is extremely important for the future value of your precious investment. Hop on Google Maps, learn about the school districts, and check out the local government to learn what you’re buying.
7.) Make Offers 📂
Here is the fun part, making offers. At this point, you’ve probability have seen so many property listings that you’re a real estate professional now.
8.) Get an Inspection (or Three) 🔎
Inspections are a great quick way to get a professional into your future property to let you know if anything might be wrong with the property. They are fairly cheap depending on the area the property is in, and if the property is large like a single-family home or larger, it’s highly recommended!
9.) Close The Deal ✒️
Now we’re getting somewhere! Closing on the property is a great milestone to strive to achieve. Once you close on your new property, you’re a real estate investor (not quite) but we’ll get there in a second. Buying a piece of property is an incredibly complex process, so congrats on the purchase of your first property! You can probably celebrate (just a little). The real celebration comes when you receive your first check from a tenant.
10.) Do Renovations That Are Needed 🔨
If you don’t have expertise in real estate construction, it’s recommended to purchase a property that only needs light cosmetic renovations done to it. If you have little knowledge on how to remodel a piece of property and buy a highly distressed property, chances are high that your “investment” will end up costing you a fortune in the long run.
11.) Rent It Out! 🏡
Literally, life is complete at this point. Just kidding, you’re officially a real estate investor now, and now you can get cracking on the next one.
📚 More Resources to Build Wealth! 📚
How To Get A Perfect Credit Score
Top Four Credit Card Bonuses Of 2020: https://youtu.be/TE0XxwCtVrs
How To Find Tenants: https://youtu.be/ioWPf1NQccE
BiggerPockets Interview: https://youtu.be/THwBitBV3JU
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00:00 – Introduction
01:26 – Credit
03:05 – Like Button
03:13 – Down Payment
05:28 – Income
06:21 – Pre-Approval Letter
07:17 – Market
08:13 – Make Offers
09:17 – Get Inspection
09:59 – Close The Deal
10:52 – Renovations
11:21 – Rent It