Are you ready to take the plunge into rental property investing? With proper preparation, you can make wise investments and turn a profit. To get started, here are 8 essential steps to take:

#1 DECIDE ON YOUR GOALS

Before you can start investing in rental property, it is important to have a plan and be clear about what your goals are. Ask yourself why you want to invest in rental properties and how much money you want to make from them. Once you've determined what your goals are, you will get clarity and focus. Know what you want!

#2 CHOOSE YOUR MARKET AND DO YOUR HOMEWORK

Choosing the right market is critical in rental property investing. Research different areas that are good for investments, such as those with job growth and population booms. You should also look for neighborhoods with low crime rates, which will make it easier to attract tenants. Lastly, analyze the legal environment of the area – some cities have stricter regulations than others.

#3 BUILD UP YOUR REAL ESTATE TEAM

Once you have identified the right market, it is time to build your real estate team. You will the help of the core four: Real Estate Agent, Property Manager, Lender, and Contractor. It also helps to have an attorney who specializes in real estate investments, and an accountant or financial adviser who understands investment properties. A virtual assistant can be a great addition to your team if you want to unburden yourself with menial or administrative tasks. Keep in mind that your team should be able to help you with everything from finding properties to handling paperwork, taxes, and repairs.

#4 FIGURE OUT YOUR FINANCING OPTIONS

It is important to have a good understanding of your financing options before investing in rental properties. You can use traditional banks or take out loans from private lenders, for example. Consider getting pre-approved for a loan so you know how much money you can work with and make sure you have enough saved up for the down payment and closing costs. The good news is, there are so many financing options available, you just need to explore and find the right financing to fit your goals.

#5 START GETTING LEADS

Now that you have a real estate team and a good understanding of your financing options, it’s time to start getting leads for potential rental properties. Start looking at listings online or hire an agent who can help you find the perfect property. You can also seek help from your virtual assistant to do cold calling and appointment scheduling. Consider different factors including rent prices in the area, how close it is to amenities, and if there is potential for appreciation.

#6 START ANALYZING DEALS

Once you find a few properties that meet your criteria, start doing your due diligence. Have an inspector or acquisitions manager come and check it out. This will help you determine if there is anything you need to take care of before investing in the property. Analyze the numbers carefully, including cash flow projections, mortgage payments, repair costs, and taxes. Remember, math overcomes fears. The more thorough your analysis is, the better your chances of finding a great deal.

#7 OFFER AND NEGOTIATE

After doing your research, it's time to make an offer. Now that you know what the numbers are, you can negotiate the best deal possible, taking into account the repairs needed and other costs. Always remember, negotiation is not just about getting what you want but also understanding what the seller wants. And, you might end up parting ways with the seller, but there will always be other properties that will fit your investment goals.

#8 CLOSE AND MANAGE

Once the offer is accepted, it’s time to close the deal. Have your real estate attorney and accountant look over all paperwork and make sure everything is in order before transferring funds. Once you own the property, start managing it according to your plan. Hire an experienced property manager if needed and always make sure to stay on top of repairs and maintenance. Doing so will help you maximize the return on your investment and ensure a successful rental property venture. 

Rental property investing can be an incredibly rewarding endeavor. However, it is important to do your homework before jumping in. Take the time to research markets, build up your real estate team, figure out your financing options, find leads, and analyze deals. Once you have the right pieces in place, offer and negotiate a good deal, and close and manage the property properly. Doing all this will help ensure you make smart investments that bring in steady returns for years to come. For professional guidance on the above-mentioned steps, talk to Bud Evans Consulting. Our comprehensive coaching program provides the best tools for you to overcome your fears and achieve generational wealth through real estate!