You want to venture into the real estate business for the first time, or you’ve already begun, and you’re on the path towards being the true definition of one. But, first of all, what is a property investor anyway? A property investor is one who is in the business of buying properties with the sole purpose of earning a return on investment.
The show was hosted by none other than Josh Dorkin and Brandon Turner, two successful property investors on Bigger Pockets Podcast, one of the best sites that can lead you on the path towards becoming the real meaning of what is a property investor. You can also click here to listen to it on iTunes.
The two hosts talk about 40 basic tips for you buy the next investment property. However, this review will look at 10 of them. You can find out the rest from the podcast found on the link given above:
1. Analyze Various Properties
You have to go through a lot of properties until you settle on the best deal.
2. A Good Agent
A good agent will help you become the exact description of what is a property investor.
3. Begin Financing Early
After having settled on a property, start sourcing for funds early.
4. Find Good Lenders
According to Josh and Brandon, you can ask other local investors on who funds them.
5. Learn The Math
For you to be the exact definition of what is a property investor, you need to learn to do the math right.
6. Learn The 50% Rule
It’s for ensuring proper cash flow (for buy and hold deals). Josh mentions that in this rule, 50% of your income will go out in non-mortgage expenses.
7. Learn The 1 % Or 2% Rule
Brandon reveals that here, for example, if a property sells for $150 000, the one percent rule says it should rent for $ 1500 a month, while for the two percent rule it should fetch $3000 monthly rent. However, Brandon continues by saying that the two percent rule is impossible to find in many areas.
8. Take Note Of Positive Cash Flow
Josh stresses on the fact that if you want to be the proper definition of what is a property investor, you shouldn’t purchase property that has negative cash flow unless you have another agenda with it.
9. Make Use Of Craigslist
Brandon advocates for Craigslist, which is always updated and gives rent comparisons with other properties so that you can make an informed decision.
10. Compare Contractors
If there are several bids from contractors, you can choose like three or four and do background checks on them for you to choose the most suitable one.
The two hosts sign off by urging people to apply these tips whenever they are planning to take on another property investment as they would help in achieving the status of being the correct definition of what is a property investor.