This is the exact process I developed when building my own portfolio of 250 rentals. It is also the system I used when representing other investors I taught and did 110 transactions a year with no assistants. Please feel free to use this in your own Real Estate Investing efforts.
Instructions for New Win Realty Advisor Students
This is the exact plan I followed when I made all of my investments. It is the plan I use while teaching several hundred students, and it is the plan I follow when I teach real estate agents how to work with investors. It is a good plan, follow it.
1. First we will have a telephone conversation to go over goals. At this point you need to have available cash or credit to continue.
2. Send in an email to me stating your name, email address, and phone number.
3. I will set up your search criteria on the MLS system.
4. Initially you will get an email with a link to the MLS system. The first property matching the search criteria will be shown with a drop-down box at bottom left allowing you to scan forward to other listings. You will be receiving the “FULL” listings. This first email will consist of several hundred listings.
5. Next, you will separate the good from the bad. Your objective is to narrow the list down to about 30 properties. You do this by comparing the list price to the market values for the area. The list price should be below market value. Also, look at the photographs of the property, the lot size, room sizes, and other characteristics of the property. This will take a few passes of the listings. As you narrow the list down also use the county web site for further research. This is a process you will get better at with experience.
– For multi-units my experience shows me that I should get $400-500 for 1-bedroom apartments, $450-650 for 2-bedroom apartments, $600-750 for 3-bedroom apartments. Taxes can be obtained from the listings. Insurance should be 0.5% of value annually ($100,000 property is $500 per year). I try to keep price per unit to $35,000 or less per 3-bedroom unit, $30,000 or less per 2-bedroom units, $25,000 or less per 1-bedroom unit. *NOTE: different areas will have vastly different models. Study your area and make adjustments accordingly*
– There are variables here like the condition of the property (turn-key vs. needing rehab)
– Trust your instincts to focus on what you think are the better deals and eliminate the rest.
– You will get better with experience and I will be guiding you.
6. The resulting list of 30 or so properties is your drive by list. Now you will drive by the properties to further narrow your search down to 10 to 15 properties.
7. At this point you will email to me the MLS #’s, (in a string separated by commas) of these 10 to 15 properties. At this point I will review your homework and narrow the list down further. I will make notes to show you my work. This will typically result in 7 final properties.
8. Now we will schedule an appointment to go see the properties.
9. After viewing the properties you should have a list of 4 to 7 properties that you will fill out the MAO, CASHFLOW and cost sheets for.
10. I will review this work and with my help you will decide which properties to make offers on.
11. We will fill out the sales agreement, make a photocopy of your hand money check, and provide both with your proof of funds to me. I will provide comps to verify your ARV(s).
12. Now we make the offer(s)!
To really grasp this process I recommend you take the accompanying training course for buying rental properties. To learn how, please call me at 1-800-931-2605 or email Gary@WinReatyAdvisors.com. You can also learn more by visiting MyInvestmentServices.com.
Written by Gary Wilson, Owner and CEO,
My Investment Services
How I Did 110 Transactions A Year With NO Assistants…And You Can Too… Get My Case Study Now>> https://www.myinvestmentservices.com/gift
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