What is the first step after finding a property where the calculations work?

Question

I am new to real estate investing and I do not know where to start. To clarify, I am looking to be a long distance investor. Given this I know I will need a property managner/property management firm at some point. Do I start there? Do I start by contacting a real estate agent? Should I already have a property manager on stand by once I find a market that works for me? Any advice on what your first were when investing would be much appreciated.

Michael Smythe · Answer

@Zachary Luchs

An agent and a PMC should work together to find you great rental properties!

We don't recommend relying solely on an agent as they're out of the picture after the closing. Also, in our experience, 95+% of agents have no clue how to calculate ROI, Cash-on-Cash, Cap Rate, etc., so what are they really going to help an investor with?

No one has more "skin in the game" than a PMC as they have to deal with the property every day until an owner sells or fires them.

Also recommend finding your own Inspector and not one referred by an agent. You want an unbiased Inspector.

Then:

• Do a SWOT analysis of your resources
• Write down your real estate goals
• Pick an asset type: SFH, 2-4 units, 5+ units, or something else like MHP.
• Pick an asset class: Class A, B, C & D properties, research pros & cons, pick one to focus on
• Pick a real estate market that matches your resources & goals
• Contact local agents & PMC’s to start sending you listings to analyze
• Analyze a few deals weekly, get comfortable with the market and refine what you're looking for

Shervin Golgiri · Answer

Are you curious about what Kentucky's real estate market has to offer?

YES, you can still achieve cash flows of 7% to 10% in the single-family residential (SFR) sector.

If you want to learn more about these opportunities, don't hesitate to reach out. Kentucky's market is one of the few where such profitable returns are still possible.

Shervinrealtor.com

Josh Young · Answer

@Zachary Luchs

Step 1: Get Pre-Qualified by a Lender.

Step 2: Find an investor friendly agent who also owns rental properties in the market you are interested in, a good agent will also either manage properties for you or will have a relationship with a property manager that they can set you up with. Having a knowledgeable agent help you analyze the deal is a critical step.

Step 3: Have the agent write the offer for you based on the analysis that you have done together.

What is the first step after finding a property where the calculations work?

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