Do’s
DO treat investing like a business. Adequate insurance, bookkeeping and liability protection are a must.
DO stick with deals that have a 15% return on investment or higher.
DO stick with homes priced in the low median price range.
DO start with 3-2-2 single family homes.
DO specialize in properties in one part of town.
DO keep your rent properties close to home.
DO use as much O.P.M. (Other People’s Money) as possible.
DO your own due diligence on any deal that you intend on purchasing. Never rely on anyone else to do it, not even a partner.
DO remember that quality of lifestyle is the goal NOT money!
Don’ts
DON’T buy your second property until your first is making you money.
DON’T buy a property that you cannot support for six months.
DON’T buy a home without inspections.
DON’T ever buy a property without title insurance.
DON’T buy more properties than you really want.
DON’T buy properties that you wouldn’t want to manage.
{ 8 comments… read them below or add one }
Of course the basics! Always start with the basics. Covered this on 700 show on Monday. Great topic. How many times when things go wrong when you look back you stepped away from the basics…
Favorite do is the lifestyle not the money. Keep that as your why and your motivation will always be there so naturally the money will come along with thte quality of life.
Dont-dont buy your second property with out your first making money. Sometimes our eyes get bigger than our stomachs… Once you get a system in place it all seems to happen naturally, because you are doing the right things!
Have a great day!
Natalie
Solid advice. Even though they are basic, we all still need a refresher course to stick to the fundamentals that work in real estate investing.
It is interesting to note that I have broken almost every one of these rules at one time or another.
However, I never broke several at the same time.
Don’t hide behind any one or even two of these rules as a reason not to get started. If I had waited until I had 6 months reserves, I might have never gotten started.
Get out there and get a deal done. Be willing to work harder and smarter if your have to break a rule to get started. Then strive to eventually honor each and every rule on every deal you do.
Does that make sense?
I myself have broken a few of these rules but it’s all a learning experience. People will do what they want but remember don’t try and reinvent the wheel. Sometimes we learn the hard way.
The important thing is to take action.
Karen
Don’t over-improve the property.
Nice reminder. I’m glad I followed many of these, they made my life easier and more successful.
Good blog. I will bookmark and grab your feed.
Great investment ideas!! but to invest in properties near home, well I live in new york, so that idea doesn’t work for me. That why I have to look somewhere else for deals.
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