in this video you'll learn how to invest in real estate step by step for a beginner I'm going to take you from A to Z exactly what you need to do now in my career I have bought hundreds of houses I have owned up to 30 rental houses at one point and even today our firm Everest manages thousands upon thousands of properties for investors who live around the world so why real estate why would you want to invest in real estate well every thinks about cash flow but there are other things to consider number one I think it's a great hedge against inflation like it tends to increase rents have increased over the past several years where we have had inflation and uh not only rents but property values have increased so a lot of times it's a great hedge against inflation there's also always going to be a demand for housing people have to live somewhere and we know that even in a Down Market there are still people who are renting houses uh our company got started in 2008 in the in the midst of a big downturn a financial crisis and we were still renting houses and we have rented houses for the past 16 17 years and so there's always going to be a demand and this is the whole supply and demand thing there's there's high demand and right now there's low Supply so it makes a lot of sense and then we all know that the wealthiest families in the world have a portfolio of real estate it's a great way to diversify uh not only your income sources but also just your retirement assets and so this is what these are some of the reasons we love real estate so what should you buy you need to be really really clear what you should buy so I'm going to eliminate two of these things real quick right here firstly I want to eliminate commercial property I think this is a big leap for a rookie investor somebody who's just starting out you don't need to even think about commercial real estate there's a lot of things to consider but we don't even need to go into that because commercial is not going to be for the beginner uh next you have apartment buildings I would just say multif family is is more risk and so what you can do is you can learn so much just taking it slow one rental property at a time single family single family single family and you can build up to uh buying maybe a multif family down the road but I would just say buying multif family right off the bat is not the best move for beginner Real Estate Investors I actually bought a an apartment building early on in my career and it wasn't a good move we actually lost money on it and so I'm encouraging you not to do that so that just leaves us with single family houses I think there are a lot of reasons why you should invest in single family houses so let's look at these number one is just stable income even if it's not a massive amount of cash flow it's still once you have a signed lease for 12 months or 24 months you know pretty lot reliable if you've done your due diligence you've selected the right resident you're going to have this income coming in and so it's reliable source of cash flow next liquidity if you need to sell you can do this it's going to be much harder to sell a commercial piece of property it's going to be much harder to sell a multifam property it's just a different ball game but a single family residential property you can sell it's more liquid so if you had to get your money out of it you could and then next again I just mentioned this it's less risk than buying multif family uh you need to as a beginner as you're starting this thing out you need to mitigate risk as well as much as you can you need to uh get rid of the risk and so buying one at a time makes a lot of sense and then we all know that there are tax benefits not only is there cash flow but you are able to uh write off on your taxes the um the mortgage interest the property taxes the repairs so for a lot of people it acts as a great tax benefit and I so these are the reasons why I love single family houses and then lastly we all love this trend right here over time over time if you are trying to day trade rental property it's not a good idea if you have a hey I need I need extra cash flow for the next two years I would encourage you don't buy real estate do not buy rental property this is a long-term game this is not a getrich fast this is a get-rich slow game but uh but as you can see look at this right here look at this this downturn this was 2008 and this was a big financial crisis right here but over time we saw this huge dip I I'm I'm telling you I was buying in this time and and it seemed like the world was falling apart everybody thought that it was just it was never going to recover never going to recover and so if you were an investor in this time and you sold everything you had well guess what you missed you missed this incredible appreciation that we've had and that's why I encourage people over time hold on to this real estate again everybody needs to live somewhere and this is a fantastic investment all right so let's start off with the first step so I'm just the whole thing is going to be the first steps this is what I would do if I was starting over from scratch so the first thing I'm going to do is I'm going to set goals to me I think in 10e is the first thing that you want to do what's my 10year goal and and it could be I want to own 10 rental properties it could be I want to own 50 rental properties whatever it is set that goal set that Target and then what you want to do is you want to work backwards to your fiveyear now what needs to be true in five years A lot of times it's not going to happen just the way you think it is so if you said I want to own 10 rental properties by year five you don't have to own five right it may be you own two or three and then and then it it starts to increase exponentially as you start to understand what you're doing and you get better at it or it could be you want 60 well year five you may not be halfway there so uh start with your 10year goal then work back and say okay what needs to be true in five years understanding that the first five years could be an incredible learning experience and and and you may become just a great buyer of rental property and and so then figure out what your fiveyear goal is and then what do you need to do in the first year what do you need to do in the first year and what I like to do with my goals is once I have that oneyear Target I break it down quarterly what needs to happen this quarter what needs to happen Quarter Two and I just take it one quarter at a time and I build and I build and I build and I build I believe that Stephen cvy says this people tend to overestimate what they can do in a short period of time but they tend to underestimate what they can do over a long period of time and so 10 years I think is a great uh starting point and you're probably going to underestimate what you could do but this is this is the way I would start decide again how many properties you want to own is that going to be 10 20 50 whatever the case is it's up to you uh it's just really a lot of this is going to be based on your uh desire because I will tell you there's no shortage of ways that you can invest in real estate there's no shortage of strategies there's no shortage of money out there uh for people who really want to own real estate so even if you don't have any money you 100% can find the money and be an investor and then these are the Avenues now I'm talking about long-term is this is what we like we love long-term rental property it's just more predictable than anything else I started out wholesaling so when I was buying houses I mean I was buying and just flipping these houses to investors and I was uh I mean this is the way that I started building up a reserve of cash so that we could buy rentals is I was just wholesaling now we were the way we were wholesaling is we we got a line of credit at the bank me and my partners and we were paying cash for these deals so we weren't just assigning contracts we were literally closing on these houses now we may turn around the next day or later that day and sell it but we were always going to close and that was our biggest selling point to people who we were buying from was we'll pay you cash and we'll close in less than a week we will close I don't care if we don't have another buyer we will close and so this is the way that I started I I have a lot of friends that do house flips as a way to build up cash reserves they're a lot more involved more risk involved they cost more money because you're paying for all the repairs you have to actually own the house purchase the house before you do all the repairs and then there's the risk of it sitting on the market if you've underestimated repairs or whatever that's why I enjoyed doing wholesaling when I was getting into real estate uh just because it it helped me kind of get my Foundation but you don't have to do either of those things you can really just focus on longterm owning long-term real estate which if you do it the right way and you have a long-term mindset I think this is a fantastic way for you as a beginner and then ultimately you want to set realistic expectations and this kind of comes back to your goals what are your goals going to be if you said 100 properties in 10 years I mean if you have the capital then fantastic but I I would would say thinking small I would probably do no more than you know in 10 years 50 rental houses and that to me would be more of a realistic expectation I've got friends who uh have had hundreds over a hundred rental properties uh in our city and you know but they were accumulated over a period of time what I have seen is people get in trouble when their expectations are I'm going to own 50 in one year that doesn't typically work it's not really uh a great way to do it because they they might end up getting burned I I knew somebody who bought 20 at one time and it was a mistake for this person all right next thing you want to do is we want to find our Market are you going to buy locally or are you going to buy out of state a lot of out ofate people that we deal with are in Cali they're in New York they're in uh Florida uh some are uh in other countries and so you just need to understand are you going to buy in your backyard if you live in Los Angeles you can do it but are you going to do it uh so are you going to be local or are you going to be out of state now the way you should look at this is I think the closer you are to your real estate the better but if your Market doesn't really give you many opportunities to invest in produce cash flow then a lot of people look out of state and that's perfectly fine I would just be careful of chasing cash flow to the the uh to areas where you think well this is just going to be the best cash flow because they're the cheapest properties I I think you just need to be careful and so we'll talk a little bit about what this might look like but understand are you going to buy in your backyard or you going to buy out of your backyard I knew an investor who started uh buying in his backyard actually in California and he started buying just one at a time and over 10 years he accumulated 10 rental properties in California which obviously over the course of that 10 years they appreciated really well he was able to pay down the mortgages not all the way but was paying them down they appreciated he sold that whole portfolio and then 1031 exchanged it into an apartment uh complex and then he and his wife within 10 years replaced both of six figure incomes that's fantastic if you can do that great most markets may not have that type of appreciation that's going to allow you to flip it and buy a massive apartment complex but uh again you can do it either way local you can drive it and look at it out of state you're going to rely on your team to to give you updates and see what's going on and and again this goes back to learning everything you can about your Market I would the way I like to look at this if I were going to draw this let me see if I can draw this real quick I would look at this like uh here's the city this is at the top of my funnel is it a good City are they creating jobs is there Innovation going on are people moving into the city into the state uh what are the what are the the um what are the is it a landlord friendly area so I look at top of the funnel I look at the city and then the next thing I like to do is I like to come down and go okay now that I know the city I'm going to choose my neighborhood so I want to know my neighborhood this place that I'm investing in what are the best neighborhoods that I can invest in and you're going to find in any given City there are all kinds of different areas neighborhoods that you can invest in and the way I like to look at it I like to look at a class neighborhood b-class neighborhood cclass and DCL class now a class is going to be your very expensive real estate the best uh real estate in that market that's going to be the most expensive it's going to provide you the less cash the least amount of cash flow and there's just not a lot of opportunity to own rentals there because owner occupied mostly b-class investors love bclass especially if they're risk adverse they they want to make sure that they buy a great house that they could sell on the retail Market or they could sell to an investor down the road and bclass is that good uh upper middle class neighborhood it's always going to have some appreciation and again it's not a big rental area but it's a it's a great area people love these but a lot of investors that are buying especially out of state are looking for that C-Class and C-Class is just good workingclass neighborhoods and what this means is that people are out they're working they have a steady income the houses are solid they're typically going to be 31 32 um you know mix but they great properties they will experience some appreciation not going to be like a or b class but they're just solid houses they tend to be great long-term holds then you have d-class and d-class is going to be high crime more than likely uh the the properties are going to be a lot older there's going to be more wear and tear on those properties and so you really need to understand what you want to buy understand the city then understand the neighborhood and then finally I look at the house so that's the way I I'm I'm breaking this funnel down from City to Neighborhood to house the type of house I want if it's a C-Class that I'm looking for then I'm looking for a three-bedroom two bath pro house I three-bedroom two baths I'm looking for 12 to 1500 square ft I would love a brick Rancher that's my favorite byy box that's the kind of house in a cclass neighborhood that I want to have three bedrooms two baths means that there's going to be uh enough for a family if they if people have kids or whatever and I love brick there's a lot less maintenance on brick these houses were typically built in the maybe 60s 7s 5050 607s and they're just solid houses that's that's me you need to decide what's best for you and you can do that just by doing your research and understanding that so now that you figured all this out and you come down to the city the neighborhood and the house that's great next what we want to do is make sure we have the funding I'm not going to spend a lot of time here uh you need to know hey what is your credit score if you're going to do this by yourself you know you want to be in the 7 to 800 probably if you if you're going to go out and start borrowing money from the bank uh some of you may already have the cash which is fine but traditional you can get traditional loans for these I know that uh it it just kind of depends on what somebody how many houses somebody will let you um buy traditionally it may be four may be the limit it could be 10 but you can probably sit down with your banker and figure this out if that's the way you wanted to go I have friends that also do helocs and Helo could be great if you've got a lot of equity in your house over the past several years especially since Co we've seen a lot of appreciation so you may have a lot of equity and so what I've seen people do is take a home equity loan they go and pay cash for a property they use that money to rehab it and then they refinance it out and pay their pay down their HELOC again and then they have that cash ready to do another one so this that's a to me a very easy easy way to do it another way that a lot of people probably should do especially just beginning is just a JV it's just a joint venture find somebody who has the money and or if you have the money partner with somebody who will put in The Sweat Equity either way is a great learning experience whether you have the money or whether you have the time and the you can put in The Sweat Equity I know plenty of people who do this this goes on every single day there are people who out there and they are I've got a friend who does this he puts in all the Sweat Equity he's got the contractors he uh picks out the you know all of the they flip houses so he picks out the design and everything they're going to do inside he manages it all and his partner he and his partner split the profit at the sale of the property that's one way to do it I have another friend in a different JV partnership and so there's a lot of ways to do this and this friend just has a couple $1,000 in the bank and he allows a real estate investor to borrow on that when he's buying properties and he just pays my friend like a 10% return on his money and my friend doesn't need to he says I don't care about splitting the profits I'm fine if he takes the profits I just want my 10% there's people out there like that they just want to return on their money so you can do this anyway you can split this thing up as as many ways as you can think of and then there's hard money loans and hard money is is just they're going to have a higher um interest rate so maybe they're at 133% maybe they're at 15% I think you know I think I'm not sure what the rates are right now but you can contact a few hard money lenders and you can find out what they usually do is let you borrow the money to buy the property maybe even borrow the money to fix it up and it's all going to be based on arv of the property so if there's a $200,000 house arv and you're buying it for 100 and each 20 in work or 30 in work they may loan you the whole 130 because it's got a $200,000 arv and you're going to pay a you know it's meant to be a short-term loan so you want to buy the property you want to fix it up as quickly as possible and then you want to sell it or you want to refinance it if you're holding that for rental you want to refinance it pay them back and then you have a much lower rate now your HELOC is going to be you know right now I don't know maybe 8% I didn't do that right uh 8% maybe 7% and it's you're just going to be paying interest only on that and then JB partnership is whatever you can whatever terms you can come up with I think are uh is is what the JB is going to be the whole point is once you've chosen your area your neighborhood and your property then you want to get the money ready then you want to be able to pull the trigger then the next thing is is choosing the right property so I have a few thoughts on this especially for beginners I would you know I would choose something that is in minor need of repair just needs a few repairs not something that needs a massive overhaul I don't think beginning you should deal with foundations like if you there could be a great deal out there and there's there's a foundation issue it's got cracks all in the wall and that's going to be costly if you don't know what you're doing uh could be more expensive than you think I would just choose something that needed paint flooring the ones that we used to love are just the outdated houses where maybe a family inherited the property and we were able to buy it it was it's like 70s or 80s still in the house and it's going to be much harder to sell on the retail Market but for an investor we love those houses because we can come in there and just cosmetically update we can redo the kitchen we can redo the flooring we do take all the all of the uh wallpaper off and paint the walls that is a great investment uh again you don't want to um you just want to avoid the uh foundations I would avoid uh anything that um just where you're going to have a price tag of you know4 to $50,000 to repair that property I would avoid that again just don't want any major repairs then the other thing to think about is just cash flow now there is a 1% rule we haven't seen this rule play out recently and uh in this type of Market you know back a while ago when money was cheap you you could find that and and when properties weren't appreciating so much you could find the 1% rule you don't find that much anymore but I would say you just need to know that it is going to cash flow so you can figure that out we'll do another video about how to analyze rental property to understand what your return's going to be based on very conservative numbers but you just want to make sure that you're not paying into the uh paying into that property you want to know that it's going to cash flow so to do that you've got to make sure you have all your repairs maintenance ongoing plugged into your numbers we're going to talk about that in just one second and then for me if I'm starting out again I'm going low crime good job growth and good schools those are CNB class neighborhoods mostly and I would I would focus on those 100% would focus on those and just know the great thing about this is just know that if you have an area like that low crime job growth and then great schools you're going to get that appreciation along with paying down that note and you're also going to get something that a lot of people don't think about is you're going to get uh rental appreciation as well so your rents over time are going to increase we've seen rents increased over the past several years like majorly but it's not typically that way it's starting to settle back down but good steady rent growth is uh is something that will also come if you choose the right property in the right area all right how about this how about the never buy list I'm just going to put a big X by this like I would never or maybe should be red right you never want to buy these properties I would say anything that is a hundred years old I would avoid I would avoid this I had bought houses that were built in 1905 1910 1915 whatever they don't work out mainly because or at least especially new investors they don't understand how much repairs will go into this property there's going to be so many repairs that need to be done because they're older a lot of times these houses have really high ceilings and so what happens is you move a resident in and they have to heat and cool this with high ceilings and it costs them more and they're like well I can go get a really efficient three-bedroom one bath three-bedroom two bath 1,200 squ foot you know 8ot ceilings 9ot ceilings and do a lot better save a lot of money that's why I avoid older houses you're you're never really ever going to be prepared for long-term maintenance on those houses I have bought them trust me you don't want them uh 100y old houses expensive you don't want to be the most expensive house in the area I'm I'm even saying if you're in a b-class area or a a C-Class neighborhood you don't want to be the most expensive house you want to be in line with most everybody else I would encourage you buy the normal house don't think that somebody's going to love your house because it's really nice and has all these custom features don't buy into that you're talking about residents and these are people who are renting properties they just want to have a normal house they want to live in there hopefully for a long period of time and then and then they want to leave and you just don't want to be stuck with something that you're going to have to sell one day and it's going to be a lot harder to sell the most expensive house in the neighborhood I'm going to tell you as a rookie avoid high crime neighborhoods the Temptation for in vors is to buy in these areas because these high crime areas provide potential for higher cash flow but what you'll find is a lot of investors it doesn't wind up that way they get enamored with a spreadsheet right so don't buy into the spreadsheet if I could reiterate this everything looks good on paper I I was just looking at a deal the other day where a turnkey provider was selling trying to sell this piece of real estate and the high crime area that it was in was bad they underestimated repairs they overestimated appreciation they underestimated taxes I mean there's so many things that a spreadsheet can get you to believe that's not going to be reality and the challenge is is that you're going to wake up one day and say hey this is a horrible investment I'm losing money and then you're going to blame whoever is managing the property or you're going to blame the person who sold it to you and the truth is you should have never bought it in the first place all right so avoid high crime areas I'm just going to tell you you're going to have more problems uh and and part of the part of the reason we don't like uh lowincome and high crime areas is because people have personal uh issues that happen all the time in life doesn't matter where you live most expensive neighborhood poorest neighborhood doesn't matter everybody has issues everybody has problems the issue comes when if you lose a job and you're living paycheck to paycheck and then all of a sudden you can't pay your rent if you're in a uh super low income high crime area this may happen that people are less likely to have cash reserves to get them through a bumpy road a bumpy time in their life which everybody has so again you can you can mitigate that risk by just kind of buying that B or C Level b or c um class neighborhood and then white elephants what is a white elephant I'm going to draw an elephant here that's not too bad is it uh Avoid White El what why white elephants you the thing about white elephants is if you saw a white elephant you couldn't ignore it right you've never seen one before in your life you couldn't ignore it and you'd be like what this is a white elephant I've never seen one you can't ignore it and you can't do anything about it if you wanted to get this thing out of your way you can't go up and push a white elephant out of the way it's way heavier than you and there's nothing you can do so what are white elephants white elephants are let see if I can get it in here they are busy streets they are train tracks they are um funky layouts of the property there's a reason why deor Horton uh sells millions and millions of houses because they create cookie cutter floor plans the floor plans that everybody wants that's it they don't try a funky layout so if you walk through a house or you get pictures of a house and it's got weird like a somebody has to walk through a bedroom to get to the kitchen just stay away like don't it's going to be harder to rent uh I would say if you're in a cold area steep driveways all these things are white elephants power lines um anything like that just stay away from it just avoid those white elephant issues because again it's going to be harder to rent so now you you've decided the area you've gotten your financing you've decided what you're not going to buy what you are going to buy the the never buy list is really important then next you're going to just start searching for deals and I would say if you're going to do it by yourself then these are the places MLS Zillow Redfin realtor.com all these things are going to be syndicating out to the same places you're going to see a lot of the same houses but you can just search search search you can set up alerts for certain areas you can uh look at houses I think you should look at a lot of houses honestly you should look at a lot of houses you could also Network you could start going to Ria deals if you're buying in your own backyard you could start start going to Ria meetings uh which is like real R REI which is real estate investor meetups you can do that you can even even if you're not buying in your Market you might want to still go to those meetings and just learn from others the people standing in the back of the room are the people that do a lot of deals the people sitting in the front rows are there to hear a speaker they probably aren't doing deals I would go and hang out with the people in the back of the room and just get to know them you're going to learn a lot you you may even find somebody who wants to Mentor you the real estate industry is really cool because you do have people that want to help and and a lot of them don't like sell courses so you can just ask for advice and they're happy to give it to you uh again you can attend auctions I've not really ever done this I've not gone and bought a house on the courthouse uh bought a house on the courthouse steps I know people who have that's just not for me uh but I would say always stay disciplined to your buy box now the buy box is exactly what we talked about it's the for me it's the three-bedroom two bath house it's no more than 1500 square foot and it's a brick Rancher your buy box could be completely different and that's okay you just need to decide what's best for you and then you can then you can commit to it to me once you have that buy box you you eliminate 90% of the properties out there you just eliminate them who cares all you care about is what you're committed to buying in the certain area so it's going to give you just a limited scope and there are other investors who have a different buy box so you aren't competing all the time with somebody and then last thing is just patience patience again I mentioned this this is a get-rich slow not a get-rich quick thing and so you just like this again you've already set your target for 10 years 10 years 10 years by Nature we want immediate gratification we want to hit the Easy Button we want everything done for us easy we want the quickest way to $100,000 uh so that we can leave our job or whatever the case is if you if you're patient and if you stick to a plan and if you stay disciplined you can go very very very far with a real estate investor uh we we know this we see this all the time we have investors who have built tremendous amounts of wealth over the years just by simply staying steady they're just they're hitting singles really every single day it's just hitting singles nobody's trying to hit a home run people who try to hit a home run strike out a lot again I have seen investors who bought too much too fast and gotten burned and lost hundreds of thousands of dollars so don't don't do that just be patient and then the last thing you need to do is make an offer right so you can work with a a friendly uh a real estate investor friendly agent which I would suggest not a retail agent an investor friendly agent these people are used to making offers like this they know the areas of town that investors like so you need to find them we've got a list of cities that we have agents in but you can find the investor friendly agent and they absolutely will know how to find you these these deals uh again it's a numbers game I used to I used to make so this is the deal we used to get around a hundred leads to buy this is to buy houses 100 leads a month we automatically disqualify like 50% of them we may make 40 offers and we would buy three to four houses a month that's what we would do so 100 leads we so for you if you think about this you you may look at 100 houses you may think wow 40 I found 40 that might fit my buy box and you probably aren't going to make 40 offers I mean that's a lot uh this is what I was doing fulltime you're not going to be doing this more than likely fulltime if you're just starting out you may make 10 offers and you may you may make you may make 100 offers before you buy your first house that's okay just stick to your numbers whatever number that is that fits stick to it we do have a cash flow calculator uh you it it will be there'll be a link below this video you can oh that where did that go you can click on that link it's free all you have to do is save it as a copy and then you can use it it's going to give you a great way to break down all the numbers it'll make sure you put everything in that you need to financing repairs renovation uh fees expenses Insurance taxes all this stuff highly encourage you you can download that it's absolutely free so you want to make sure you have all the numbers really before you make an offer right and then once you make an offer you're going to get an inspection now this inspection is should be by a professional now your agent can give you a ballpark figure your agent should be able to go you know what I think probably I don't know uh probably going to be $155,000 worth of work that inspection is going to that person is going to go out they're going to find other things so you may make an offer based on your the kind of your eyeball test you may make that offer but you're going to have a period of time where you can go and have an inspection you should have that because it may reveal things that you didn't know or it may may reveal to the positive or the negative more than they're going to find more that you weren't aware of uh because that and then what you're going to do is you're going to come back and make that negotiation right so if you were buying this $200,000 house for 100k because it needed 50k in work you may come back and say well really need 60k in work I can only buy this for 85 you you were you had your offer was 100 and again you don't want that that that much in repairs maybe a better number would be you were buying it for 120 and it needed 10 in repairs whatever the case is you can come back and negotiate that's what you're going to do and you just need to be prepared if they say yes you're going to take it but that's what the inspection allows you to do and then ultimately you're going to close that deal and that's going to be a great day because then you're off to the races you you figured this out you are buying this property and it's yours now you got to think well how am I going to manage this property I need there's a couple things you're need going to need to manage your agent can help you with you're going to need to manage the renovation and then you're going to need to manage the uh marketing of that property the the you're you're going to need to manage the uh underwriting of the resident and then placing the resident in there and collecting rent all those things so are you going to do it or you going to have somebody else to do it now if you're in your buying in your own backyard can you do this yeah absolutely absolutely that that just if you have the time and you know you want to do that because it's a great learning experience which is the way I learn you 100% can do that absolutely you you can do it uh you may even be in your backyard but you're like Hey listen I have a high paying job I don't it's not worth my time the the time that I get paid it's not worth it to come and and deal and show the house to potential residents unless you want to learn then you will find somebody in your area that you can trust to manage that property for you if you're out of state you can manage it from out of state but it's going to be a lot harder because you just you probably don't have the relationships in these areas now if you have really good friends who want to be a part of this in in that state that you're buying in then maybe you can talk them into a JV deal or whatever but you're going to need to build the team and so I would say this team is going to um going to need to take care of Maintenance they're going to need to screen and manage tenants they're going to need to show the property these are the these are the people you're going to need on your team they're going to you or this person is going to need to keep up with property laws what's changing some areas some municipalities are going to be a lot more difficult to navigate than others for instance I know that in Detroit Michigan there's a lot of regulations for rental properties in and around the city even if you're not investing in the city there's a still a lot of regulations you got to follow I know in Colorado a lot of laws have changed recently so there's just different places you need to understand and keep up with property laws you need to be able to follow fair housing uh and then also market trends what's going on in the market nobody's going to know better uh about the rental market than a property manager so this is why we see a lot of Real Estate Investors especially out of state and out of country ones contact us and say I need help with how much is this house going to rent for we're happy to talk to people about that we do that every single day and then like I mentioned just property managers there are great property managers all over the country that can help you depending on where you are you can find them uh I would interview a couple of them make sure they knew what they're talking about uh and then I would hire somebody if you didn't want to do it yourself then this is the last thing we're going to really kind of talk about is I'm a big believer if you're going to buy one property you need to plan on buying 10 buying one buy 10 buying one is not going to really help you very much unless it's a you know unless you just are inheriting a rental house and you're just like hey I want to give it to my kids one day and you just want to have that one house fine but I would encourage you if you're going to buy one think about buying 10 it's going to provide you with more consistent cash flow if there's a vacancy if there's a big repair maybe a capex expenditure like a roof or HVAC that cash flow is going to help you out it's going to keep you know it's going to make sure that you're not like just totally struggling if you have if you borrowed money to buy that house and you're not having to come out of your own pocket again this can be done overtime should be done overtime time and you get to decide how quickly you build that portfolio but I'm just going to encourage you because uh vacancy is going to happen non-payment at some point is going to happen and and I say this because people have struggles in their life like everybody does right this is not news and so if somebody loses a job what are the what are the uh problems that people have loss of job health issues divorce those are three big ones that can prevent somebody from paying their rent if you have one house one property then that's going to be a bigger issue for you especially if you have to evict somebody especially if you have to get them to you could you could lose not only three or four months of rental income but then it's going to cost you to evict that person $500,000 $2,000 whatever the the cost is in that municipality and it's going to be just a big pain in the butt and then you're going to have to go in there you're going to have to fix the house up and then you're going to have to rerent it again so we're talking months of lost rent not to mention the expense of fixing the house up and getting it back on the market if you have 10 properties this is much less of an issue uh because it may happen to one out of 10 and then of course you could use your additional cash flow for just different repairs that you have it's it's really simple so this is it let's let's just do a really quick recap I think this has been uh a lot for uh if you're a beginner to me this is I've covered everything that you need to know everything you need to be thinking about again setting goals is really really going to where you start find your Market get your funding all together pick the right property but remember pick the right property but remember our funnel we want to go down from from the area to the neighborhood to the house and then your never buy list don't buy these houses and then you're going to search for deals make offers and then lastly just making sure that property is managed correctly you want a great experience for the person you're renting it to as well as yourself this is a this can be a win-win situation we see it all the time it's a win for the resident they have a great place to live they have uh a clean house they have a safe house uh they love the neighborhood and then it's a win for you because you are not only providing housing for somebody but you're also receiving income rental income all right so that's it if there's anything you think I've missed I'd love to hear from you why don't you say something down in the comments and tell me if I missed a step or if you didn't agree with a step whatever the case is would love to hear from you and then subscribe to our Channel like this video share it with people if you found value and then we hope you come back to our Channel Channel because we're going to continue providing value and excellent resources for Real Estate Investors who want to grow rental portfolios all right that's it hope you enjoyed it see you next time