Uncle Real Estate is happy to help
Have you ever wondered how to obtain your first ever income property?
Would you like to review some first time income property buying strategies that work?
Hint: The actions required to buy your first income property are very similar to how you will purchase your second, third and fourth income property. So let’s focus our attention on the most important purchase ever…your first income property purchase. We will begin by deciding what type of property you want to buy. Your positioning will be adjusted based on the desired property type you are searching for. What type of property would you like to own? I’ve been fortunate to have purchased income property by both stumbling into position and by dogged determination. The odds of success increase substantially if you use the dogged determination strategy.
Common Types of Income Property
1. Rental Home
2. Apartment building 2-4 units
3. Apartment building more than 5 units
4. Heavy or Light Industrial use buildings/property
5. Retail strip centers, anchored shopping centers
6. Office buildings
7. Storage facilities
8. Single, unit, free standing commercial
As a first time income property buyer, you will need to be “in position” to succeed with your real estate investment purchase. Do you realize that means YOU must be looking for the property every day even hourly at times, and at the very moment you locate the right property, you must pounce before losing out to someone else. It’s critical for you know and understand value so that you can move quickly with confidence. Remember, it’s easy to be in position to buy something that is not a quality income property because no one else wants it. However, to be in position to purchase a well-priced, well-located, desirable income property is challenging because there is a lot of competition in the world for the same type of property. With Employee Pensions disappearing for workers and 401 K’s getting punished every so many years by Wall Street money types and various emotional economic forces, individuals are trying to build retirement through income property. The challenge to create a quality retirement has made the income property playing field very competitive.
What does being “in position” mean?
Being “in position” is different for everyone, but there are some similar characteristics and a way to optimize your position. That’s right, every first time buyer can maximize his or her own position for the ultimate opportunity to buy. You want to be as ready as possible to impress the seller with an offer in a timely manner. Each real estate investor is unique in their preparation to purchase a property. For one buyer, being in position to buy is having a lender pre-qualification letter in hand and a real estate agent looking for the property on their behalf, for another buyer, being in position is having all cash on hand and doing much of the ground work themselves.
What are the Characteristics of being in position to buy??
1. Identify the type of property you wish to own.
2. Limit your search area to three locations within one hour of you if possible. (the closer the better)
3. Have a relationship with a loan agent/lending institution where your loan application documents have been submitted for loan approval.
4. Create a relationship with a quality real estate agent in each location you are searching.
5. Be placed on a “search criteria” email list with each agent working for you.
6. Understand the numbers and locations you’ve identified better than the competition.
7. Be mentally prepared to say “yes” to writing an offer if the right property hits the market.
8. Be aware of professionals that will help you determine the condition of the improvements.
9. Understand what is required by local county, or cities to review existing property files on record.
10. Become familiar with city and county staff operating planning and building departments.
WRITER: Uncle Real Estate is a real estate broker in California. He has been a real estate investor in California since 1992.