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- STEP 1: Decide what you are going to do.
- Quick flip: improve and re-sell in less than a year?
- Value add: improve physically and financially and sell in 2-5 years
- Long term hold: same as value add, but perhaps larger? Future Re-finance?
- STEP 2: Identify property type:
- Residential: Single Family House, 2-4 unit, 5+ unit multifamily
- Commercial
- Special use (ie car wash, laundromat, storage)
- NOTE: I would strongly consider in the above in order due to cost and complexity.
- STEP 3: Identify location: nearby (strongly recommended) or out of area: 2+ hours away
- STEP 4: Determine investment strategy. What will you do with the property? What equity and cash flow will be created and by when?
- STEP 5: Determine how much money you have to invest. Solicit funds from FFF (friends, family and fools!).
- STEP 6: Research properties:
- Online: Residential Realtor.com. Commercial: Loop.net, Crexi.com
- In person: visiting neighborhoods and property in person
- STEP 7: Find an agent and lender. Look for those with good reviews, domain expertise, and build rapport/personal connection.
- STEP 8: Identify property, ground ALL assessments (due diligence) and proceed with offer, close and execute!
