How To Buy Your First Rental Property With Step by Step by Graham Stephan

Watch Step by Step Video Tutorial How To Buy Your First Rental Property

How to invest in real estate: Here’s exactly how you can buy your first rental property, step by step, and the process involved.

Step 0: Because this is where it starts, you’re going to need a down payment. Learn how to to save for a house.

Step 1: Unless you’re buying a property outright in cash, which I have a feeling is very few of you watching…get your credit in order. Learn how to build your credit.

Step 2: Make sure you have your tax returns prepared. If you’re self employed like me, a lender will ask for your last 2 years of tax returns and take the average income of those two years. Be ready for this!

Step 3: TALK TO A LENDER FIRST BEFORE YOU DO ANYTHING. First, you’ll know EXACTLY what you can qualify for so you won’t waste your time. Secondly, if you find the right place, the lender already has all of your information so you can hit the ground running. And anytime you find a spot that’s worth buying, chances are, you’re competing with other people who want the exact same thing. So timeliness really, really matters here. The faster you are, the better the deal you can get.

Step 4: BEGIN LOOKING AT PROPERTIES. This is really meant to be the fun part…look at EVERYTHING you possibly can within your price range. Learn how to find a good deal.

Step 5: Determine cash flow. The reality is that 95% of properties just don’t make sense to purchase for an investment. They lose money. It’s also the reality that at a certain price, EVERYTHING makes a great investment – it’s really important to understand these numbers. Three ways to make money owning real estate. Mortgage Calculator:

Step 6: Look at properties that need minor cosmetic renovations! Learn about the most profitable renovations and the biggest mistakes.

Step 7: MAKE OFFERS ON PROPERTIES! Expect that not every offer will work out for me, I lose out on many offers because I offer a price where the numbers make sense, and if it’s any higher than that, I won’t buy it.

Step 8: Do your home inspections! Make sure to do as many home inspections as you possible can. Check the roof, the foundation, electrical, plumbing, if there are any leaks, bring in contractors for bids if it needs work…the more you do, the better.

Step 9: Understand escrow costs.

Step 10: RENOVATE IT! Watch videos on home renovations.

Step 11: RENT IT OUT! If you want to rent your place for top dollar, use REALLY good pictures, pick up your phone on the second ring, and be available anytime to show it. I promise if you do this, you’ll have no problem renting it out quickly. I personally like using, Craigslist, Zillow, Redfin, Trulia, and…the more places you property is, the better. Never just limit yourself to one of these, DO THEM ALL. Do tenant screening 101 too.

STEP 12: SCALE UP and repeat!

The collateralization allows a lower interest rate

However, sometimes is a good thing to be very careful about secured or collateralized loans. If you are using your home equity to consolidate, you need to very careful and understand possibility of risk. Just make sure you stay current with your all payments or you could be risking losing your home. When borrowers choose to get a new financial help, it is pretty much a matter of fighting with a fire. But the risk here is that once you rework your debt, you may become tempted to pile on additional financial problem because the lower payments could make you feel complacent.

More often is involve a secured loan consolidation against an asset that serves as collateral, most commonly a house. In this case, a mortgage is secured against the house. The collateralization allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale of the asset to pay back the loan. The risk to the lender is reduced so the interest rate offered is lower.

Consolidation option can be great help for you

Loan consolidation is one easily availed option which can be of greater help to you. The process of debt consolidation helps you to consolidate all your existing loans into one, and pay off your all previous loan amount at once.

Consolidation loan is specially meant to those debt-ridden borrowers, who have incurred several loans, and are bewildered while paying them off. This kind of borrowing opportunity gives a borrower a financial amount similar to the sum of his all existing debt amount. This amount is used to pay off his all previous debt amount. Consolidating of all loans into only one loan consolidation save borrower from confusion of paying so many monthly installments for several loans which they have taken.

There are two types of loan consolidation available; secured and unsecured. Secured method of consolidation will require borrowers to put collateral security. The collateral security could be your home or any other property. Secured way of borrowing has several advantages like lower interest rate, longer repayment period, smaller monthly installments, and high loan amount. The loan amount you wish to avail depends basically upon the value of your collateral.

While borrowers availing unsecured mode of this loan might not avail such advantages, due to absence of collateral security. But relief can be sought from the fact that they are getting several of their debts over. People having bad credit history are also eligible to avail loan consolidation. They can take up this loan to improve their credit score. Whether you are availing secured or unsecured way of debt consolidation loan, it is going positively to help you in shorting out much of your financial trouble.