How I Purchase My Rental Properties (The Four Step Process!)

How I Purchase My Rental Properties (The Four Step Process!)



you know rental properties are one of the greatest investments out there but just by an annual property is a recipe for disaster you got to know what you are doing so in this video I want to walk you through exactly how I find finance and purchase my rental properties so you can do the same my name is Brandon Turner host of the BiggerPockets podcast author of the book on rental property investing and the new book how to invest in real estate and over the past decade I've purchased nearly a hundred rental units spread out over a couple dozen different properties some single-family some multi-family I mean heck even a mobile home park I've made a lot of mistakes in my time but I've also hit a few home runs so in this video let me go through the kind of the four step process that I've learned works the best for purchasing rental properties but before I get to the four tips can I ask a quick favor from you if you like this video so far or by the end you like it click that little thumbs up button and be sure to subscribe to our Channel I mean it's what we do with BiggerPockets we pump out a whole ton of real estate investing content to help you achieve your goals all right we all together Phil good let's get to it step number one in purchasing rental properties is to define what you want look are you looking for a cheap fixer-upper a nasty little property or maybe a nice duplex or maybe a 500 unit apartment complex on the beach look I really believe that most success in life can be boiled down to two simple things knowing what you want and hustling until you get it so that's why it's so important to define exactly what you want and remember not every property type works for every area and not every area works for every strategy so either find what works in your local area or find an area that fits what you want to do when I got started I decided that I wanted to buy mostly small multifamily properties like a duplex or triplexes and so that's what I did so what are you gonna go after all right step number two is to arrange your financing now granted step two and three which we'll talk them on a second could be done in either order but I like knowing where my financing is coming from first now I've used a variety of strategies for financing my rental property purchases I've used traditional 20% down low from local banks I've used partners who fund the down payment for me and allow me to do it for no money down I've used seller financing I've used lease options I've used commercial loans and more look there are a ton of ways to finance real estate deals you know I like to think of it like a toolbox the more tools you have in your toolbox the more projects you can take on in the same way the more financing tools you are aware of in your mental toolbox the more properties you can buy for more on the creative side of real estate finance of course check out my first book the book on investing in real estate with no and low money down alright moving on to step number three you got to go hunt for deals yes in today's competitive market you have to go hunt right put on your camo and go out there look for that deer they don't just lie down on your doorstep begging to come in for dinner the strategy behind hunting though is really actually pretty simple and I use the acronym lapse to describe it you got to get leads you got to analyze them you got to pursue them and then sometimes you'll find success now let me recap now leads can come from anywhere maybe real estate agents maybe a website like realtor calm or Zillow maybe direct mail marketing or Craigslist or word-of-mouth or whatever and once you start getting the leads coming in you got to analyze them to find out how much you can pay then you go after the ones that you kind of like that you think might could maybe work out and if you're consistent and persistent enough with the process you will eventually find success and that leads us to the final step of our for purchase your rentals at this stage you'll need to use a local title company or maybe an attorney in a few weird states and they'll do the title search and handle all the paperwork the title company pulls everything together and makes it nice and organized they work with the lender they work with the agents involved they work with you they work of the seller and they tie everything together in a nice little bow to help you get the keys and that is how I purchase my rental properties and how you can start doing the exact same but before you leave let me give you three quick action steps that you can implement today right it's all about action so number one head over to Realtor calm or Zillow calm or maybe the bigger pockets marketplace and start checking out properties see what they are see what's there I get Miller with them then to try running the numbers on those properties using the BiggerPockets rental property calculator at BiggerPockets comm such analysis remember what your mama told you practice makes perfect so start running the numbers daily until you feel comfortable to start making offers right and third if you liked this video don't forget to click that little thumbs up button and subscribe here to our channel for BiggerPockets calm my name is Brandon Turner sign enough