How to get started in real state: Must have: ⁃ Credit ⁃ Mo..

How to get started in real state:

Must have:
⁃ Credit
⁃ Money
⁃ Bank to get a loan from
You need the bank, credit and money with out those you got nothing.

You can put a 3% down that’s $3,000 Every $100,000.
Reach out to a banker and they’ll tell you what you need if you’re not sure

First step: Go to The Bank
⁃ Build Your Credit
⁃ Can’t do it by yourself, you need bank money
⁃ They put up MOST of the money, AND they don’t get to be a part of the DEAL. You own 100% of the deal. They only get it’s interest. After that you get an INFINITE return.
⁃ Ask the bank what you need to provide THEM to get a loan. Any kind of residential loan. What do you qualify for.

Tips:
• The higher your credit score is, the lower the interest rate you pay when taking a loan. Which will end up saving you money by not having to pay high interest rate because of your credit being low.

• What to ask the bank: “If I find an income property that generated income what would they loan you.”

• Remember without the money you got nothing.

• Make sure you have at least $20k-50K
• Make sure Credit is good.
• Want to buy a house to make money? The bank will tell you what you need to accomplish that. Give them the credit that they want so you can get the money


Step 2: Save your money
⁃ Have your money ready to be invested
⁃ Be Prepared to pay 5-20% Down payment
⁃ Have the income to get the loan
⁃ Have the credit score to get the loan at a GOOD interest rate


Step 3:
⁃ Have proof for your income to get loan
⁃ Have a consistent paycheck.
⁃ 1-2 years of tax returns history (For Self-employed they look at the last 2 years of tax returns and take the avg of the income for those years and based the loan on the results)

• Lenders wants to see that you have a consistent stable long term source of income before they give you a loan for a property. This is for them to avoid high risk borrowers and to know that you are able to pay this loan back not be a risk for the lender.

• Before you file your tax returns with the state have a lender review it. In order for them to determine whether or not the income you have is sufficient for the loan you want to get. This works great in your favor because if you are showing too much income you will be overpaying on your taxes and you can write off more. But if you are not showing enough income you can ease off your tax write off and get approved for the loan you want to get

• Go to different banks give them your tax returns and bank statements anything they need. And they will pre-approve you for a loan based on that information. Now you can then go and take that rate sheet a go “shopping” with other banks that will run the same information and they will often beat that loan of the first bank and you keep doing this until you can get the best rate possible for a loan.

Step 5:
⁃ Make offers on properties do not overspend
⁃ Have patience
⁃ Do not loose a good deal if you find one. Even if you have to spend a few thousand dollars more to get the perfect place.


Step 6:
⁃ Close in your property
⁃ Start renovating the property
⁃ Buy undervalued home area that’s going up in value adding equity by remodeling.
⁃ The more the home is worth, the more you can rent it out for. Which means you he more money in your pocket.

Step 7:
⁃ Find a tenant
⁃ Rental Websites.
⁃ Social Media.
⁃ Billboards
⁃ Word of Mouth
⁃ Post a "For Rent" Sign.
⁃ Hire a Realtor.