First Time Investor Do’s/Don’ts

[Frank Lo]

Hello BP users,

I am a new investor just starting out. I have not yet acquired my first property or conducted my first deal.

I just created my LLC this week to use for my rental property business. I have opened a bank account in the business name, talked with my CPA and my attorney, and have found a local agent who we already feel is a great match for us. I am excited to say my REI journey has officially begun!

I have been scouting locations in my hometown and our agent has taken us to a few showings.

This has made me realize just how new and inexperienced I am at REI.

Which also has me thinking, what are some of the things you wish you would have known/done differently when you were starting out vs. today?

[Jonathan Greene]

Do: pinpoint your search to three towns max. Don't tell your agent you are just looking for a good deal. Micro your deal area as much as possible and be patient in that area.

Do: have your financing and paperwork in order and ready to make an offer. Have your lender ready to update pre-approvals and have your proof of funds ready to show you have the downpayment + closing costs + inspection.

Do: see as many properties as you can that are true options for you, but don't take your new agent on wild goose chases of properties that have a low chance of working for you.

Don't: try to use multiple agents in the same geographic area. Stick with one agent unless they aren't doing a good job, then part ways and find another.

Don't: put profit of comfortability. As in don't choose an investment or house hack because it cash flows only to realize later you don't want to live on that block or pick up rent there.

There are just a few to get you started.