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🏠5 Simple steps to buy your 1st rental
The exact blueprint I use!
Buying your first property can overwhelming.
There are so many things to do. The roadmap from idea to execution seems unclear.
But instead of getting lost in the nitty gritty details, keep these overarching steps in mind:
Define your investment strategy
Build your team
Set process goals
Cashflow is king
Double down on relationships
Before jumping into today’s issue:
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1 - Define your investment strategy
To buy your 1st rental property, you need a target to aim at.
One of the big mistakes new investors make is not having a clear strategy.
There are plenty of investing strategies to choose from:
Co-living
Flipping
BRRRR
Short-term
Mid-term
Long-term
Wholesaling
You can reach financial freedom with any of these strategies.
The problem isn’t the lack of options. It’s too many options, like the Cheesecake Factory menu.
Focus on one strategy instead of trying to dabble in a few different ones. One strategy
Gives you focus
Eliminates distractions
Builds mastery in the strategy over time
The secret to picking the right strategy:
Choose the strategy that’s best for you based on your interest, personality, and time/effort.
Some people love hospitality. They love giving guests wonderful experiences.
Others love rehabs. They want to get their hands dirty and turn trash to treasure.
Pick a strategy you are excited about and ignore everything else.
2 - Build your team
New investors think they can invest in real estate alone.
In reality, it’s a team sport. The quality of your team will dictate your success as an investor.
Your team should include
An investor-friendly realtor
Property manager
Lender
CPA
The best way to build your team is from referrals.
Start with a great investor friendly realtor. They’ll have the necessary contacts. And since they’re a great realtor, they surround themselves with great people.
3 - Set process goals
As you know by now, we are big on goal-setting here at FI Investors.
A common goal-setting mistake is to make the outcome the goal. For example, “I want to buy my 1st rental property in 30 days.” Instead, set process goals:
I will analyze 1 deal per day
I will analyze deals every morning for 30 minutes before work
I will network on social media with other (specific strategy) investors in (specific location).
The key is to build the habit of becoming a real estate investor.
Real estate investors look at deals daily. They never know when the right deal will come up but are ready because they analyze the market every day.
Your goal isn’t to buy just 1 property. It’s ultimately to become a real estate investor. So focus on the process.
4 - Cashflow is king
Don’t buy a property that doesn’t cash flow.
Cash flow is your protection. You can survive if your property value declines.
And don’t bet on refinancing into a lower rate in the future.
More seasoned investors might buy real estate for different reasons, but keep things simple for your first rental. As long as your property cash flows, you can survive.
Cash flow is essential to the financial success of your investment and to achieving financial independence.
5 - Double down on relationships
Real estate investing is a long-term game.
As mentioned, you can’t go at it alone. Don’t take shortcuts.
Focus on building long-lasting relationships with your team members, mentors, and other investors.
Relationships get you access to deal, teach you faster, and form partnerships. Through relationships, you get referrals, build authority, and grow personally.
Relationships make wealth fulfilling.
If you are interested in buying your 1st rental property, consider house hacking. It’s the easiest way to get started in real estate.
Download the House Hack Starter Pack
A free, 7-Day crash course to help you buy your first property, live for free, and start building generational wealth. It’s a step-by-step blueprint to get under contract. Click here to get it free!
Financial Independence Resources:
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Free Educational Email Courses:
6 Keys to Financial Independence - Escape The Rat Race, Earn Passionate Income, & Build Generational Wealth (And actually enjoy your money before you're 65).
Achieve Wealth Your Way - A Roadmap to setting and hitting your financial goals so you can become a millionaire investor, scale your real estate portfolio, and live your life on your terms.
ATX House Hack Starter Pack - Get your first house hack in Austin, TX with step-by-step instruction for financing, finding your submarket, and analyzing deals. Plus, we give you contacts to start building your team from Day 1!
House Hack Starter Pack - A 7-Day crash course to get your first house hack, live for free, and build your rental portfolio. (And not buy a bad property that forces you to sell, lose thousands $$$, and give up on your real estate investing dreams.)