Am I ready to make my first offer?

[Account Closed]

Hello BP,

I have been learning about REI for over a year now. Reading, joining a program and some meet ups.

I have been urged by a few members at meet ups to start making offers. While I believe it is important to just get in there and learn through experience, I am still unsure if I am jumping the gun.

My plan is to buy a multifamily property around 300k and do the brrrr method.

I have been researching areas and running numbers on properties (mostly New Brunswick, Calgary & Ontario). I live in Toronto where it is too expensive so I plan on finding a good property manager investing further out. Most of the members in my group are happy to share and recommend connections in these areas.

I am speaking with a mortgage team but I haven't been approved yet. I believe I will likely have to use a B lender as I have worked alot of cash jobs in the past and only began keeping consistent payroll since Jan 2022.

I also have a potential prospect of a private money lender that can help with the down payment and I will return monthly payments with interest. Then pay back fully once I refinance.

I also have 5k saved up. I know its not a much right now but I am adding $800 a month to that number.

Should I focus on finding a good deal running the numbers and offer.  Or is it more important to secure financing first? In my scenario if I am going convince my lender to invest in me I will have to show him a good deal first. 

I don't want to start developing analysis paralysis but I also feel like I must be realistic in order to make this work.

Any advice is greatly appreciated!

[Michael Brattelli]

@Matt Barakett If you only have $5k you’re not ready. An unexpected repair alone could cost more than that. Like someone else said, save up and maybe 30-50k would be realistic however I don’t know your market. In the meantime keep learning as much as you can.