01-29-2011 09:18 PM
I looking to purchase a multi-unit property as a second source of income in the Baltimore metro area. I own a home and have been through the purchase process about 5 years ago.
Purchasing an investment property is a brand new concept to me and I would like some guidance on where i should begin. I have picked a nice property thats within my budget and will be seeing it in the next few days.
Can someone point me to some sources that walks someone through the process of buying a home or an investment property? I want to know .. what next??
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01-30-2011 08:25 PM
I would recommend a book that was written by Gary Keller (who founded Keller Williams Realty).
Initially, he wrote a book that became the "GUIDE" to successful real estate agents and eventually he moved on to write a couple other books for other areas of real estate. One of those books was called: THE MILLIONAIRE REAL ESTATE INVESTOR. It's basically a soup to nuts look at investing and it covers many different types of investing (including CASH FLOW type investing). Don't worry, it's not FOR those that have a million dollar portfolio, but rather, how come up with a strategy that will help you go from nothing to generating a million dollar cash flow...
Most times when I begin working with an investor, I give them a copy of this book and it helps to focus what the investor is trying to achieve.
Are you working with a real estate agent that is savvy when it comes to investment properties and understanding cash flow formulas? That would be a huge resource to you but ultimately, you have to educate YOURSELF because you have to make sure any particular investment fits into your investment (and exit) strategy.
01-31-2011 10:14 AM
Congratulations on deciding to improve your life by investing in yourself and asking professionals. You are looking to purchase a multi-unit property. So, that tells me that you are looking to be a landlord. The very first thing you need to do is a personality check and see if that is what you want. The way to do a personality check is to ask yourself do you mind dealing with tenants, finding them, qualifying them, dealing with payments, dealing with non-payments, dealing with repairs, dealing with personalities etc.
You need to go to the library and look for all the books that have to do with how to be a landlord. There is a book called The Landlord Survival Kit. I don't know the author, but that's a good start.
The next thing you want to do is find the area in which you want to purchase. Research the area, the income that the area will generate and the other statistics of the area that you think your tenants will be attracted to the area for. If you find that after this research you are still excited about the prospects of being a landlord then contact a real-estate agent that you trust is knowledgeable in this investment type of purchase and utilize their services to find your first place. Hope all works out for you!
Amir Head, Realtor
01-31-2011 04:42 PM
And after you read the recommended books and articles (Google to find good articles), get yourself a good loan officer who can look at every available option. You will need someone who knows every angle, is honest and is local. If you need a name, contact me personally and I can provide. Good luck! Cher