Newbie to Real Estate Investing - Any Tips...

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Mohammed Rahman
Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
1y

To qualify for a loan, focus on having a credit score of at least 620 (or 580 for FHA loans), keeping your total monthly debt under 43% of your income, and saving enough for a down payment and closing costs—about 5-10% of the home's price in total. You'll also need to show stable income for the past two years through W-2s or tax returns.

Talk to 3-5 lenders to compare their rates, fees, and terms. Start by getting pre-approved to know your budget and show sellers you're serious. Once pre-approved, gather your financial documents like pay stubs, tax returns, and bank statements. Compare offers from the lenders, paying attention to interest rates, closing costs, and any penalties. Choose the one that offers the best deal and service, and you'll be set to move forward with the process.

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  • Brandon Snyder
    Houston, TX · Member since 2025 · 21 posts · 5 votes
    1y

    Welcome Malcolm, I'm excited to see your journey unfold.. what's your gut feeling about the New York market these days?

    0Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    1y

    Hello @Malcolm Brown,

    Welcome to the BiggerPockets forums!

    Most of our newer investors approach 2-3 lenders to discuss loan options.

    Some lenders recommend making your financing inquiries within a 45-day time period to avoid larger drops in your credit scores.

    All the best!

    Abel

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  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Brandon Snyder:

    Welcome Malcolm, I'm excited to see your journey unfold.. what's your gut feeling about the New York market these days?


     I am just starting out, providing an assessment of the NY market would likely not be a correct assessment.

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Abel Curiel:

    Hello @Malcolm Brown,

    Welcome to the BiggerPockets forums!

    Most of our newer investors approach 2-3 lenders to discuss loan options.

    Some lenders recommend making your financing inquiries within a 45-day time period to avoid larger drops in your credit scores.

    All the best!

    Abel


     Thanks for that insight.

    1Reply
  • Mohammed Rahman
    Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    1y

    To qualify for a loan, focus on having a credit score of at least 620 (or 580 for FHA loans), keeping your total monthly debt under 43% of your income, and saving enough for a down payment and closing costs—about 5-10% of the home's price in total. You'll also need to show stable income for the past two years through W-2s or tax returns.

    Talk to 3-5 lenders to compare their rates, fees, and terms. Start by getting pre-approved to know your budget and show sellers you're serious. Once pre-approved, gather your financial documents like pay stubs, tax returns, and bank statements. Compare offers from the lenders, paying attention to interest rates, closing costs, and any penalties. Choose the one that offers the best deal and service, and you'll be set to move forward with the process.

    1Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Malcolm Brown:

    Newbie on board.  

    What are qualifying tips that we should be aware of?  # of lenders to approach?  Steps to take?

    Starting out rules of thumb for newbies

    Thanks for your insights.

    Hey @Malcolm Brown, welcome to the BP Forum! What type of properties are you looking to add to your portfolio? SF, 2-4 MF, or 5+ MF? And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"? Lenders can have different loan options based on the property type and the amount of rehab (if any) required for the project.

    [email protected]
    0Reply
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    1y

    @Malcolm Brown it is great that you are thinking of the money to fund the deals you are going to get started with but understanding what a deal is, I think, should be the starting point.  Also you have to understand what kind of investor you want to be.  Are you looking for cash flow/appreciation/a little of both?

    finding and analyzing deals should be at the top of your list of things to learn when starting out!

    Best of luck!

    0Reply
  • Ryan Harrell
    Memphis, TN · Member since 2023 · 100 posts · 24 votes
    1y

    Hi @Malcolm Brown,

    Welcome! It's best to approach 2-3 lenders to compare their rates, terms, and loan programs. It'd be a good idea to work with lenders who have found their niche working with investors. BP is a great resource for connecting with lenders. 

    Have you considered what property types or markets you're interested in?

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Jaycee Greene:
    Quote from @Malcolm Brown:

    Newbie on board.  

    What are qualifying tips that we should be aware of?  # of lenders to approach?  Steps to take?

    Starting out rules of thumb for newbies

    Thanks for your insights.

    Hey @Malcolm Brown, welcome to the BP Forum! What type of properties are you looking to add to your portfolio? SF, 2-4 MF, or 5+ MF? And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"? Lenders can have different loan options based on the property type and the amount of rehab (if any) required for the project.

     Thanks @Jaycee Greene.  My research to date is leaning towards 2 - 4 MF along the lines of a "fixer upper".  That said, going through the pre approval process as I type to know price point.

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Ryan Harrell:

    Hi @Malcolm Brown,

    Welcome! It's best to approach 2-3 lenders to compare their rates, terms, and loan programs. It'd be a good idea to work with lenders who have found their niche working with investors. BP is a great resource for connecting with lenders. 

    Have you considered what property types or markets you're interested in?

     Hi @Ryan Harrell in each case w/ a lender does a credit check (report - score) has to be undertaken?

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Shawn Ackerman:

    @Malcolm Brown it is great that you are thinking of the money to fund the deals you are going to get started with but understanding what a deal is, I think, should be the starting point.  Also you have to understand what kind of investor you want to be.  Are you looking for cash flow/appreciation/a little of both?

    finding and analyzing deals should be at the top of your list of things to learn when starting out!

    Best of luck!

    @Shawn Ackerman would you be generous to share your process of assessing deals? Leaning towards cash flow as the entry point ( 2- 4 MF).

    0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Malcolm Brown:
    Quote from @Jaycee Greene:
    Quote from @Malcolm Brown:

    Newbie on board.  

    What are qualifying tips that we should be aware of?  # of lenders to approach?  Steps to take?

    Starting out rules of thumb for newbies

    Thanks for your insights.

    Hey @Malcolm Brown, welcome to the BP Forum! What type of properties are you looking to add to your portfolio? SF, 2-4 MF, or 5+ MF? And what is your price point and are you looking for turn-key properties or something along the lines of a "fixer upper"? Lenders can have different loan options based on the property type and the amount of rehab (if any) required for the project.

     Thanks @Jaycee Greene.  My research to date is leaning towards 2 - 4 MF along the lines of a "fixer upper".  That said, going through the pre approval process as I type to know price point.

    @Malcolm Brown Are you planning to purchase a property in your personal name or via an LLC? With investment properties, most lenders I work with prefer to have an address to work with in order to provide a "soft" quote, which does not include a hit to your credit.

    [email protected]
    0Reply
  • Jerell Edmonds
    Investor · Warwick, RI · Member since 2019 · 129 posts · 68 votes
    1y

    Don’t start a new job . Pay off debt . Rate shop . Have a 680-720 credit score . Look for grants . House hacking will be your best friend starting out . There is a new bill being proposed hopefully eliminating Pmi if that gets passed that would be a game changer . And the most important thing LOCATION,LOCATION , LOCATION . 

    1Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    1y

    @Malcolm Brown

    Welcome to BP!

    Starting out in real estate can feel overwhelming, but breaking it into clear steps makes it manageable. Start by getting pre-approved for a loan, ensuring your credit score, debt-to-income ratio, and finances meet lender requirements. Educate yourself with books, podcasts, and market research, define your goals, and build a team of professionals to support your journey. Focus on analyzing properties and starting small, like house hacking or buying a single-family home to rent out rooms, while ensuring cash flow and maintaining an emergency fund. With patience and a solid plan, you’ll be on your way to building a successful portfolio.

    Good luck!

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  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y

    Thanks for the advice

    0Reply
  • Lillian Pintaro
    Real Estate Agent · Member since 2024 · 46 posts · 13 votes
    1y

    Hi! Welcome. Are you looking to invest in state or out of state?

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y

    In state.  In my county to start.

    1Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    @Malcolm Brown Would something like this fit in your buy box: https://www.realtor.com/realestateandhomes-detail/84-Livings...?

    [email protected]
    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y

    @Jaycee Greene That's one of the towns that does not fit into my criteria.

    Thanks

    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Lillian Pintaro:

    Hi! Welcome. Are you looking to invest in state or out of state?

     
    In state. In my county to start.

    0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y
    Quote from @Malcolm Brown:

    @Jaycee Greene That's one of the towns that does not fit into my criteria.

    Thanks


    Right county, wrong town?

    [email protected]
    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Jaycee Greene:
    Quote from @Malcolm Brown:

    @Jaycee Greene That's one of the towns that does not fit into my criteria.

    Thanks


    Right county, wrong town?


     That is correct.  Mount Vernon and the Bronx also fall into that category. 

    0Reply
  • Jaycee GreenePro Member
    Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 727 votes
    1y

    OK, how about this duplex: https://www.realtor.com/realestateandhomes-detail/4749-Richa...?

    [email protected]
    0Reply
  • Malcolm Brown
    OP
    Member since 2025 · 25 posts · 7 votes
    1y
    Quote from @Jaycee Greene:

    OK, how about this duplex: https://www.realtor.com/realestateandhomes-detail/4749-Richa...?


    Some areas don't fall under my criteria - Yonkers, Mount Vernon, and areas of Bronx to name a few.

    0Reply
  • John Dunn
    Member since 2023 · 13 posts · 5 votes
    1y

    As you are looking into different towns across Westchester, understanding the municipal government of each is important.  

    Here is a good resource to understand the tax structure of each municipality in Westchester.

    https://retiredassessor.com/

    Tax systems and rates vary wildly from one municipality to the next.  As a consequence a deal that makes sense in one municipality may not half a mile down the road and over the border in another municipality simply because of the taxes.  

    Besides understanding the tax differences among all the municipalities, try to gain an understanding of their buildings departments.  Some municipalities
    have a reputation for incredibly difficult building departments.  For example it took four months for me to get a permit to remove two trees.  If you know any contractors, ask them if there are any towns they won't work in.

    1Reply
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