Essential Concepts to Master Before First Purchase?

Question

I am planning to make my first investment purchase early this year - preferably a multi-family buy and hold. Maybe a flip if the deal is right. I am working to educate myself with podcasts, webcasts, forums and several REI books. I want to avoid major mistakes but also feel I am starting to drown in information and want to take action. I know I will learn most by doing (like everyone else!) but want to set myself up for as much success as possible. What are the most critical analysis tools/concepts I need to master prior to making that first purchase?

Thanks for your advice and experience!

Josh

Thanks for your advice and experience!

Josh

Josh R. Dunwoody · Answer

@Steve Bracero Thanks for the reply. Some of these I'm progressing well in but definitely need to gain more insight in to fair market rent in the area and tenant/landlord laws. Thank you for the insight.

Arpan Patel · Answer

Probably take a look at the BP calculators and keep reading. This game is about learning as much as you can and just keeping it in your head (other than numbers of course) to hone your instincts. You're doing everything right and there is no one most critical thing you need to learn first. This game has a lot moving parts - it's not rocket science but it does require strong sense of logistics and a strong sense of urgency. Keep up the book work and research and just go with your well reasoned instincts. I hope that helps

Steve Bracero · Answer

@Josh R. DunwoodyJust a few: Define what you are doing. Either Multi or flip. then study just focus on knowing your one niche very well. Define how you will find deals, mls- off market, direct mail. etc

Knowing your fair market rent in your area. Knowing how to evaluate a deal. Knowing the tenant/landlord laws in your state.