How to Find Your First Real Estate Investment

1) Determine a location and strategy
Define the area you want to invest in based on economic fundamental research; this includes breaking down your criteria to find the best neighborhood to suit your investment style. Next, you’ll want to determine your strategy. Are you specializing in long term holds (and if so, how long will you hold)? Short term flips? Renovation deals? Foreclosures? Tip: Review your financial plan and personal goals for the next 15, 10, five and three years. This will help you decide which strategy to use when looking for your property. Start from the end goal and work backwards.

2) Get pre-approved
Do you have your financing in place? Get pre-approved. You may not always know where your financing is coming from, but it is less stressful to have a few options lined up, and doing so makes you look like the professional you are. Be certain to have a back-up plan, or Plan B, to close your deal if things don’t go as expected at the bank or lender. Tip: Before you go to the bank, prepare a detailed financial binder. Include your employment history, tax statements, asset and liability sheet as well as current financial statement.