🏠 5 easy steps to buying your 1st rental property

Let’s talk about buying your 1st rental property.

If you are starting out, or are in a rut, this one’s for you. The 5 easy steps to take are:

• Define your investment strategy

• Build your team

• Set process goals

• Cashflow is king

• Double down on relationships

Buying your first property is overwhelming.

There are so many things to do. The roadmap from idea to execution seems unclear. But don’t worry - it’ll be much easier to buy (and buy the right property) when you follow these steps:

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 - Flipping, BRRRR, Short-term rentals, Mid-term rentals, Long-term buy & holds, Wholesaling, etc.

You can reach financial freedom with any of these strategies.

The problem isn’t the lack of options. The problem is that there are 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.

The most important thing is to stick to your strategy.

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.

You may’ve heard of other investors buying a property for a different reason but that’s not the norm. We are talking about buying your first home. Not some advanced tax sheltering, appreciation play.

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.

Whenever you are ready, here are 3 ways we can help you:

• Get your 1st rental property with our Rookie Mastermind

• If you have multiple properties and want to scale, join hundreds of other FI Investors in our Elite Mastermind

• 6 Keys to reaching financial independence free ebook