Not sure how to get started with real estate investing?
Here are 5 simple, easy-to-follow steps to getting started in real estate investing—even if your pockets are a little light.
How to Get Started With Real Estate Investing in 5 Steps
- Obtain a pre-approval letter. Learn how much you can get approved for in terms of a mortgage. If you’re a first-time buyer, you may be able to make use of an FHA loan with very little money down.
- Find your deals. This could refer to either off-market or on-market properties. A good broker can help you find deals to fit your criteria.
- Run your numbers. If you want your money to be an asset, you may want to look for a property with multiple units where you can live in it and rent it out. You’ll want to understand how much your gross income, expenses, and profit will be.
- Make the bids! Say your broker provides you with three to five deals that you like. You’ll want to vet these properties further to see which you choose to offer on. If this is your first deal, you may want to pursue a property that’s already renovated (a turnkey investment).
- Closing. Make sure before you go to closing that you perform your due diligence. Once you complete the closing process, the property is yours!
Any questions about these steps? Where are you in the process?
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