🏠 5 Simple steps to buy your 1st rental

Buying your first property can be 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:

1. Define your investment strategy

2. Build your team

3. Set process goals

4. Cashflow is king

5. Double down on relationships

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. Pick 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 into 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

1. An investor-friendly realtor

2. Property Manager

3. Lender

4. 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 deals, 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.

🎥 YouTube Video of the Day:

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• Book a Strategy Call with FI Investors to create your personalized scaling plan.

• Program Overview: Learn how we help investors scale their portfolios.

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