Thing You Don't Ask... Because You Don't Know To Ask Them
Hello Everyone,
I've been reading and collecting information to get involved in Real Estate I'd like to buy my first rental in the next 90 days. So I've been working with my Real Estate Agent (Also an Investor 10+ Years / 12+ Doors) and we chatted on the phone.
He asked, what is my Plan/Goals going into Real Estate do I have them written down, what do I want to accomplish this year?
-- I let him know what I was going for and he critiqued and provided positive feedback of why not consider doing X,Y,Z.
We are meeting up again on Tuesday for lunch and I'm compiling a list of Questions, both to get feedback and I want to put together a list of questions anyone would want to ask if they were a new investor getting into real estate.
Now I have a basic list of questions to ask, but because I've never really thought/considered/known much about RE I don't know what to really ask, any seasoned investors remember their beginning and some questions you wish you had asked or learned of before jumping on your first deal?
Some questions include.
1. How do you target a specific area to invest in ( Population, Job Growth, Unemployment, Vacancies, Etc )
2. How much does a property have to appraise at to get financing. (I want to Buy/Rehab/Appraise/Rent - ~6 months out refinance my original money in out of it and leave 20% (Equity) in collecting "Some cash flow" and repeat the process.
3. If your researching a new market what is a good way to get information on the area (Call PM - Ask them what 2/1 3/1 Rent For, Vacancies, Are fees based on Rent or Flat Fee, Etc).
4.
Reply below and I'll add it to my List, I meet with him next week so I'll give a run down on what we discuss and notes.
Thanks,
@Brent M. That's a good question man and good job on preparing for the meet up. As for information on the market I believe the best market to invest in is your own backyard. I don't know how well you know your market, but I am assuming you aren't ignorant and know where the good, bad and decent areas to live in are. If you really want to know check out bestplaces.net and see what they have to say. Yes working with an investor agent is a great place to start but I haven't seen more than a few good deals come out on the MLS in my market. The best deals are usually always off market. Once they hit the MLS or LoopNet they are usually charging top dollar. Always remember you make your money on the BUY NOT the sell. I would hope that since your agent seems like a seasoned investor that he would know the ins and outs of the market. Investors are usually the best people to talk to about the market because they are actively involved and analyzing it. Another way is to simply just drive around town. See where rehabs and new construction are taking place. See if you can see any signs of gentrification such as yoga studios, hippie restaurants etc. You didn't say how much capital you have to invest and what your goals are but the more doors under one roof the better! Good luck and never stop learning man!
@michael guzik Yeah originally I had looked into "Morris Invest" had been watching the channel for awhile and I was excited to move my investments from the stock market over into real estate. I was shown a few places, compared them to the neighborhood and saw I was getting good cash flow, but there was no equity build up I was actually paying more then it was worth and would maybe sell in the future.
I decided to flip it back and just learn the basics by practacing the BRRRR in my home state instead, here I can still find 25-35k houses with new kitchen/bathroom cosmetic work for 15-20k, total price in 50-55 that would rent for 695/750. Those are still cash flow assets, but I don't think the bank will let me refinance on anything appraised less then 60k.
Anyways it's all a work in progress, I called local Property Managers to ask them what rent is for a 2/1 | 3/1, vacancies rates, if they charge a flat fee or rent based %, few other questions.
I'm getting an idea of what is in my area and what I should be focused on first.
Yeah the real estate agent bought a fixer for 120k, put some work in sold 235k after he posted it on Facebook had someone call with offers that night.
I have plenty of cash for buying/repairing, Cash is King he said and asked if I wanted to be a money lender that the return was "ok", but there would be no equity and build up.
Yeah, my goal is to collect as many doors as I can and have $100-200 of ROI I'm shooting for appreciation and being able to pull my original money back out.
