First duplex

[Michael Campbell]

Hi, I just joined and am just starting in investing. My plan is to invest in 2-4 units. My question is what should I do first? Should I get financing lined up or talk with a realtor? Is there a way I can get into a duplex with no money down? Thanks, Mike

[Ben Leybovich]

@Michael Campbell

Those are good questions actually. Let's think these through:

Financing is important because when you've found a bird you have to have a way of bringing it down, which in most general terms is a function of having access to money - financing is important.

Talking to a realtor will result in gaining access to MLS listed property. Generally speaking, anything that is listed in the MLS will need to be bought using conventional (all cash to buyer) financing. Thus, until you have the financing lined up, don't waste time talking to realtors.

Finally, lining up financing may involve elements other than simply going to the bank and getting pre-qualified. And finding property should involve things other than looking on the MLS. If you don't understand specifics of what I just said, then the proper thing to do now is to gain some education :)

Good luck!