Decide on where you want to invest: As an investor figure out where you want to invest and what are your goals (What are the Best Real Estate Investments). This can be in your own town or city, it can be out of state, etc. Once you decide on where it is you want to invest, you need to do your homework. Know what kind of area it is, such as schools, crime, types of properties, purchase price, and rents for the area, etc.
Hire an agent: The key is hiring a good agent. Real Estate agents know what is our there and what is available. They can help get a good deal and land a property that on your own you may not have been able to. If you are investing out of state they can be your eyes on the ground for you.
Figure out financing: Get pre qualified / pre approved. Most sellers want to see this and it saves time, head ache, and heart ache. This will help narrow down your search knowing what you can qualify for and get.
Find the right Property: Create a criteria list for what you want and for what your goals are (What's Your Why). Make sure your property meets the criteria on your list. The key though is to be realistic as well with your criteria and goals.
Crunch the numbers: Do the math on what the investment can rent for versus the expenses (both fixed and variable) and see what the cash flow would be. If you don't know all the expenses do your best to estimate them or figure them out. If you are happy with the cash flow than go get it. (Analyze an Investment)
Close on the Investment: Once you found the property, done the math, and everything adds up go and pull the trigger.
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