Are you looking for a step-by-step guide on how to get your first property? Look no further! In this video, San Diego Realtor Jack Cline walks you through the entire process, from start to finish. He provides tips and advice along the way so that you can make the most of your experience. If you're interested in learning more about real estate or want to take your first steps toward becoming a homeowner, this video is for you!

If you've thought about investing in real estate and want to know the best way to get started, then stay right where you're at. What's up, everyone? My name's Jack Cline, and I'm a local realtor here in San Diego, California. And today, I'm going to go over a few simple steps to help you find your first investment property while also helping you minimize your risk in doing so. So let's get started. First things first, educate yourself.

I know this may seem obvious but find out what you're passionate about and motivates you. Whether that be rental properties, mobile homes, a small apartment complex, maybe it's a fix and flip, whatever it might be, define what it is that drives you and learn everything you can about those types of properties. And don't forget, location, location, location. Not only do you want to educate yourself on the type of property that you want to invest in, but you also need to educate yourself in the location within your city. And what I mean by this is, is it in a good or bad neighborhood? What are the school districts like? Are there restaurants within walking distance? Is it have road noise or is it in a quiet little cul-de-sac?

The point is, if you find a great deal on an investment property in a sought-after area or neighborhood that already has a high demand of people that want to live there, the chances of that investment becoming successful are substantially higher, and this also minimizes your risk. The next tip is analyzing a deal. And what I mean by this is, let's say you're renting a property and you need to know how much that property's going to rent for in a particular area. And then calculate your total expenses.

So if you're financing the deal, you want to know what your mortgage is going to be, your property taxes, HOA, is it Mello-Roos? Et cetera. Bottom line is, look at what your total income will be from the rental, minus the expenses, now you have your net operating income. Vice versa, if you're looking for a fix and flip, then you want to know things like the ARV, or after repair value, which is essentially what other homes in the same area are selling for that have already been remodeled. You're also going to to know what it's going to cost you to rehab the property. So a basic estimate that you can use is 65 to $75 a square foot. But I highly recommend getting a contractor that you can trust that will go out to the property and get you a firm estimate because this can obviously change per situation.

Nonetheless, it's same concept. Find out what you're going to pay for the property, add up your total expenses, subtract that from the ARV, and now you have your gross margins of what you can make on the property. Understanding how to analyze a deal and what it takes to be profitable is going to be essential when it comes to an investment property and also minimizing your risk. Next, you want to get a real estate agent, and have that agent set you up on a search, looking for similar properties. So now not only are you looking for properties but you also have an agent helping you build a pipeline of opportunities. Not to mention, if you get an agent that's experienced in these type of properties, they can also help educate you, run comps, negotiate deals, they also have access to the MLS and other valuable information that can be extremely helpful throughout the process. Not to mention, it doesn't cost you a thing. Anyways, onto the next tip, and that's getting pre-approved.

Typically, a lender's going to require 20% down for an investment property. However, there may be ways around this depending on your situation. There's also hard money loans, which are considered more risky, but nonetheless, another option. And if you're well connected, you may be able to raise money through friends and family to help fund the deal. And if none of these options work for you, you can always turn your primary residence into your first investment home. So if you already own a property then simply go out and buy another primary residence 'cause this typically only takes 3 to 5% down, and then turn your current home into a rental property. Or if you're a first time home buyer, then go out there and get your first home. If it's a fixer upper, you can fix it up, live in it for a year or so, and then resell it or simply rent it out and then go buy another primary residence.

Although this process may take a little bit longer, I know a lot of people that have gained a ton of wealth doing it this way. Nonetheless, you need to know how much you can afford, what's possible, and what's not possible. All right, now that you're educated, you know how to analyze deals, you have an agent on your side, you're pre-approved, you know what you can afford, now it's just time to keep building that pipeline and analyzing as many opportunities as possible. And remember never chase a deal. There's no such thing as putting in too many offers or an offer that's too low.

Analyze the deals, crunch the numbers, and put in an offer that makes sense with your situation. Submit it and move on to the next. Keep doing this until one finally sticks. And there you have it, rinse and repeat. That's all I have for you on this one, I hope you found this helpful and we'll see you in the next one.

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