How to Buy Your First Rental House?

How to Buy Your First Rental House?




It is easy if you have a few thousand dollar to put down. When I started in the rental business I got my first character with a package deal. It was two trailers, and a duplex. The duplex only had the top occupied and the bottom was not livable. I fixed the bottom of the duplex and made it a four unit character. (two trailers and a duplex) Now it brings in about 800-900 per month. Not bad for starting out!

The first step is to do research and keeping an open eye for opportunities. It is also believing that you can do it without any objections, excuses, or letting any obstacle get in your way. If you put your mind to it you can do it. The next step is to find your character. There a lot of websites that want to help you to do this. It is very affordable. (most of the time free)

So, how do you buy your first rental character?

After you find about 10 different similarities you want to go look at them. I go and look at them by myself before talking to the dealer or owner. I look under the house for termite damage. I also look in the windows to see what the inside looks like. (Dress nice so they don’t think your a thief) Another method of finding a good deal is to look for houses that do not have the yard kept up and looks like no one lives in them.

The next step is to take the jump of faith and make a decision. I always recommend multi-unit buildings because if you have someone that leaves, you nevertheless have income coming with several renters.

Another step is to create signs that says, “I buy houses any shape, form, or fact”. Put these out if your local authorities allows you to. The next step on how to buy your first rental character would be to put in a bid. I usually try to get character at about 35% below market value. This is possible for people that absolutely need to get out of there similarities. I love old investors that want to get out of the business because they are aging.

When it comes to negotiation, one of the best tricks to say is, “This is all I can provide.” It works wonders.

Now you want to get the bank to believe in your product. (the product is you and your deal) If the house will pay for itself then the bank will gladly do it. I have a strong relationship with my bank. So when I walk in, they know I bring business and good business.

Those are a few steps on how to buy your first rental character!

Thanks and have a great day! Good luck on your Ascension Success!

-TLS




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