Purchasing a Property: The Key to Moving Quickly

[Jewel B.]

Happy Hump Day!

I am a new investor looking to acquire my first property as soon as possible (without rushing into a bad deal). I'm wondering what systems, processes, people, or steps I should have in place in order to be able to move quickly to make a deal.

My thoughts are of course to first find financing and lenders and get preapproved so I know my budget (although depending on the type of loan it could still vary). Work with a realtor to get early access to on market and off market properties. Reverse engineer the numbers for areas I'm interested in to determine my buy box and budget for specific markets and strategies that interest me. For example, know the rents for 1BR vs 2BR vs 3BR and therefore the budget for LTRs for cash flow / know the ADR and occupancy rate for x bedrooms and therefore the budget for STRs and cash flow. Same with MTRs and student housing/by the room rentals. See a deal that comes up? You already know your #s, you double do a quick double check for the specific property, you offer.

Feedback is appreciated.

Thanks!

What strategies do you use to make sure you're able to act and offer quickly on property acquisitions?

[Alex Larcheveque]

Yeah, your process is good to move quickly on a deal. In this market, properties are sitting on the market for longer, so speed isn't as stressed as it used to be.

Either way though, your bottleneck for speed of submitting an offer will be on the agent, not you. Paperwork takes time. Analyzing a property shouldn't take more than 2-3 hours max, unless it's a flip or something a little more involved.