The biggest challenge for new investors is not knowing what they are looking for. You need to have a plan, a goal, and a vision. Once you have a goal, you can create a plan.

For example, if your goal is to own 10 rental properties free and clear, then you first need to figure out where those properties will be located. We call that your target market. Then you need to know the type of property you are looking for. Let’s say it’s 3-bedroom, 2-bathroom homes. Does your target market have enough supply of what you are looking for?

The next step is to understand what type of house you will buy and how much you will be willing to pay. Are you looking for major rehabs—houses that need new roofs, air conditioning, and a complete interior renovation? Or are you looking for cosmetic fixer-uppers—houses that have a good roof and good air conditioning but just need some updating?

If your goal is the buy, repair, rent, and refinance strategy, then you are better off finding houses that need as little work as possible. An ideal scenario would be a house with a good roof, good A/C, and decent flooring that just needs some touch-up work in the bathrooms and kitchen. Instead of new cabinets, you can resurface or paint the existing cabinets. Instead of redoing the bathrooms, you can reglaze the tub and tile, and you can switch out the toilet and vanity.

Cosmetic fixers, where you plan on renting out the house, can be renovated for as little as $10,000 (or less). These are the types of houses that make perfect buy, repair, rent, refinance properties—especially if you plan on renting to Section 8 tenants.

So when you know the type of house you are looking for, you have a goal. With that goal, you can have the vision of owning 10 rentals. Then you can take action steps to make that vision and goal a reality. You do this by buying your first rental.

But you need to know the price you will buy at, and you need to understand ARV, comparable sales, and repair estimates in order to calculate the maximum amount you are willing to pay. You need to know the price point you are looking for (it’s going to be a lot lower than where wholesalers are presenting you with deals).

Now you have a plan.

At this point, you can start looking at wholesaler deals and the MLS to learn your market and practice. If you see a deal that works, you can make an offer. When you get to this stage, and you know what you are doing, then you can start marketing yourself. Buy lists of motivated sellers, people in foreclosure, property tax delinquency, probate, inherited properties, vacant properties and start marketing to them by mailing postcards. 

Before you do this make sure you set up your motivated seller website so that you look credible and professional. It will take 6 to 12 months to start getting a steady flow of sellers who are looking to sell. You can help Google out by running some long tail keyword ads to your seller site. Use words like “we buy houses in your city” or “sell my house fast in your city” to get a steady flow of leads. Learn how to talk to sellers and practise your script. Understand the “four pillars” well and use it on every lead. Go on motivated seller appointments and learn how to buy houses directly from sellers. You will need to learn the maximum you are willing to pay and you will need to learn how to overcome objections. 

Step One: Vision
Step Two: Goal
Step Three: Plan
Step Four: Take Action

If you want to get started buying your first rental property with no money down using private lender funds then your first action step is education. Learn how to employ the Buy, Repair, Rent and Refinance Strategy.

I teach this at the Buying Rentals and Building Wealth Boot Camp.

Plan on being at this boot camp if you are serious about getting started.

If not then (insert your excuse) about why you can’t make this boot camp and will be at the next one.

Seriously, how long have you been telling yourself that? If you want to learn then register now and be at the boot camp.

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