What do I do 1st

I would like to know what I should do 1st.

Should I look for properties or the financing 1st?


Study and read…especially if you need to ask!

You need to be completely and totally familiar with your target area…

  • what does a house cost? (How do you know what you’re buying is a bargain?)

  • what do houses rent for?

To answer your specific question, I would deal with financing first so that when you find a property, you can “pull the trigger” rather than still having to play around with financing…if you can, get a pre-approval letter (NOT a pre-qualified letter!)…



Like what kdhastedt said, you need to learn about real estate and define what you are doing. Buy fix up and sell, or buy hold and rent. Define what an acceptable deal for you is. If you are going to rent, what is the minimum monthly cashflow you require. If you are going to buy and sell, what is the minimum profit you require per deal, do you have resources for fix up lined up. The financing approriate for each type of business and profit requirements will be different. por ejemplo, a 100% loan or higher intrest rate will generally be fine for a buy fix up and sell, because you will not have it very long, where a buy and rent could be hard to cash flow with 100% financing or high intrest rates and holding costs. The key is to understand what you want to do. Its like the scene in Alien II when Ripply asked the Sargent “Is there anything I can do?” and he responded by saying “I don’t know is there anything you can do?” You can do anything you want to do, the key is understanding where you are going so that we can advise you on if you are heading in the right direction or not.

Thanks Kieth and Bluemoon, I like the good advice.

What I would like to do 1st is a buy, hold and rent it. This way I can learn about being a landlord. In the mean time while I’m learning I would like to do some flipps. What do you guys thing?


You can and should do more than one thing at a time.

Line up your financing with a GOOD lender. Interview them, make sure they know what they are doing. Truly put some time into this, many lenders are dorks and it can cost you.

At the same time, figure out the area you want to invest, and then learn it like the back of your hand. I know every street and subdivision in my target areas (which keep expanding, but I’m out there all the time, I started in a small area). This way when something comes up that interests you, you can make a sound decision.

As far as rents, gather the numbers you see on the “For Rent,” signs and call them. Go to the HUD site and check the fair market rents for your area. I also did MASSIVE research (e-mail me if you want the site) to determine owner/renter ratios, crime, vacancy, etc. You’ll be surprised when an area you thought was great moves to your “no” list due to crime or massive rentals or massive vacancy rates.

I’d like to also add, remember your manners. You should be going after opportunities, many opportunities are created by other’s misery. Be respectful of their situation – most aren’t – you’ll gain an edge by being smart and respectful IMHO.

Good luck to you.