In the short term rental riches will discuss investing in real estate with a specific focus on short term rentals quick action items to wire. Scale your portfolio I’m your host Tim Hubbard.

Welcome back to the short term rental riches podcast happier here again I’m always happy to do these podcasts I really enjoy so thanks everyone for listening it’s been great we’ve been growing really quickly so I appreciate all the feedback in the support and if you haven’t already if you would please just head over to iTunes or Spotify or stitcher or wherever you’re listening just leave us a quick review I’d really really appreciate it today we are talking about 6 steps to get started as a newbie investor there’s so much info out there from every source from from you too from podcasts from peers from the news telling us that we should invest now we should invest here or verses there and there’s just so much info I could see it being a newbie or being new to investing in it’s just hard to figure out where to start right so I wanted to break that down this week in just 6 basic steps if you’re a newbie investor if you’re new to short term rentals or invested in general how to go from start to finish here this of course is going to be a 10000 foot view of the whole process because each step has lots of steps within it but just a quick overview of how we get started the first thing that I would figure out of just getting started in real estate is how much money I have available to me or how much money I want to invest and so those are 2 kind of different things because you might have some money available already but you may have friends or family that want to partner with you and you may have 2 different lenders that are giving you 2 different options one maybe requires a 10 percent down payment and one requires a 20 per. Sent down payment so I would figure out how much money you have available to you at the moment and then talk with lenders and let them know that you’re looking for property and see what options they have that’s going to help you determine how much money you’re going to have to invest so that’s number one we got to figure out how much money we have how much money we might have available to us and talk with lenders so we know what kind of financing options we have available number 2 we really need to know just what we want I mean that there’s so many different ways to invest in real estate if we’re talking specifically short term rentals are you looking for suburban place and urban plains of vacation rental or something like that do you want a property that’s already turn key do you have the time to put in work to renovate a property and to do all of that yourselves because that’s gonna really help you narrow down if one property is gonna work for you verses another one what kind of weather do you really want to invest in property that you might be traveling to ever so often that’s not really good weather well maybe not in fact if you listen to the other podcasts you know that. Most people in the U. S. are getting away from the really cold areas so maybe you want to be in a place it’s a little warmer and what size property do you want you looking for a little tiny house the latest craze in in real estate traveling these cool little tiny houses or are you okay with a bigger property looking for apartment building you want to know roughly the type of property that you’re looking for so number one we need to figure out and how much money we have available to us number 2 we need to figure out what type of property we’re looking for and how much time we have available to get that property started to renovate the property if necessary once we have the time they were willing to spend and the amount of money that we maybe have available to us we need to find a good market so that’s number 3 and if your newbie investor I can almost guarantee here just going to be looking in your neighborhood that’s what I did that’s what the majority of everyone dies because they’re comfortable with the area they know the markets are a little more familiar with it and maybe have connections there of course so. But that doesn’t necessarily mean that that is the best place to invest in fact it’s very likely not the best place to invest in with all the tools that we have available today we can look to other markets especially for in the U. S. so I wrote a whole report on this if you guys haven’t got it yet head to rest methods.com you can download it there it’s my ebook on finding the best properties finding the best markets because there’s a lot more steps in here right so we got number one how much money you have available to us number 2 how much time are we willing to spend and what type of property are we looking for number 3 we want to hone in on a market and then number 4 we’ve got a narrow it down further than that because markets are huge especially if you’re investing in a larger city I recommend probably like 500000 population at least because then you know you’ve got diverse employment and the city really is we going in the right direction but if it’s a big city like that there’s hundreds a neighborhood maybe 0 and so you need to narrow down what’s gonna be the best neighborhood for what you’re looking for and and I would just go by zip codes in the past when I’m looking for new markets I do my research on a new markets I find the neighborhoods that I like and I get the zip codes and then I plug those zip codes into my searches which you can use you know realtor.com Zillow if you’re looking for property for units alas looking for an apartment building you can use a loop net.com you can plug zip codes in there save these searches they’ll email you so you can start to get a feel for that neighborhood and what those prices should be what might be a good price what’s not really start to get a feel if you’re looking at a broad city there’s no way you’re if you’re not if you’re never going to. Figure out every neighborhood in a big city like that so find some zip codes that you like in areas that you like into markets that make sense again visit that report if you haven’t seen it yet because I got a lot more tips and shortcuts into finding these markets and things like that but for today’s podcast and just breaking down this broad overview so we figure out how much money you have available to us we figure out how much time we realistically can spend and what type of property we’re looking for we found a broad market that makes sense for us could be your backyard but there’s likely better places to invest. And then we narrowed down from there a couple zip codes maybe 3 in an area that you like and this could be multiple cities if you were looking in multiple cities maybe got a couple zip codes in each one and that’ll help you compare find the best opportunities so number 5 once we have these zip codes we’ve gotta and actually find the properties and those online listing sites are gonna help like Zillow.com war LoopNet.com but I highly recommend finding a real estate agent or a broker if you’re if you’re buying a larger commercial property that specializes in those areas that you’re looking so in those zip codes are familiar with them and prefer Billy one that deals with investors already because then they’re going to have a little better idea of what type of property is going to work it’s a doesn’t cash flow remember we’re always looking for cash flow doesn’t cash flow then it’s not gonna make sense and I would not recommend getting into it expecting it to do a certain number on the long term rents or even on the short term runs and that brings me to number 6 which is the due diligence there’s 2 types of due diligence you’ve got your financial due diligence which is gonna come first because if you find a property that you think makes sense but then you run the numbers and it doesn’t cash flow you run the potential numbers is a short term rental it’s not looking like it’s going to make it leads to 3 times a long term rent that I back out of that one don’t don’t spend any more time on it so that’s really the first piece of due diligence and we’ve done prior episodes on this talked about sites like DNA they can help us source information to find out how well it could operate as a short term rental also comparing other compatible properties in that area was long term rents to figure out those numbers so again there. There’s a lot of pieces that go and all this but I just want to give a 10000 foot view of the process if you’re brand new how it’s gonna look in the flow that you will typically go through cell we’re at number 6 you got to do diligence but there’s 2 pieces the financial we gotta make sure makes sense I want to do that because we don’t want to spend money on a physical inspection which is the second piece of due diligence we have physical due diligence we wanna make sure that the property is a good property or at least we know what we’re getting it for planning on renovating that we know what condition the plot means and we know what condition the roof is and so that’s really the second piece of due diligence and more of that will happen after you’re in contract number one we figure out how much money we have available to us number 2 how much time you have to put into the property what’s realistic and what type of property are you looking for number 3 want to find a market and we want to narrow down number 4 to some zip codes some areas that we think there’s a lot of potential one number 5 we need to actually find the properties the number 6 the due diligence first renew the financial due diligence make sure the property makes sense and that’s what we’re gonna do the physical due diligence all of our home inspections are plumbing inspections but that is the basic process for starting fresh. I do know that there her her arms of little pieces in each of those 6 steps and that’s why I’m doing this podcast and there’s tons of other great resources online but that is it in a nutshell one is 6 your brand new kind of how that process is going to go now there’s a whole nother piece that’s very important after that and that’s fine in your team we’ve done episodes on finding team members and stuff like that I just wanted to keep this one real brief and not sell 6 steps but that team piece is going to be super super important to sell your brand new out there hopefully this gives you a better idea of the flow the more you do it the easier it gets I swear and the last time it takes for you to realize this is a good property now this is a bad property this is an amazing property the more you do it the easier it gets and the more comfortable you get doing that the more we take action to alleviate severe of investing so wherever you are out there hopefully this helped you and if you’re not investing real estate yet. You know they say it’s better to buy real estate and wait and wait and buy real estate and affirm besting for cash flow market prices are really going to affect us if we’re in this for the long run for 2030 years we have fixed financing so wherever you are out there I hope you have a great day and we’ll talk to next time. So we just had our live virtual fan and I gotta say it was a blast as always we done to live events before and this was basically a replica except for we got to attend from the comfort of our own homes and the beautiful thing about doing a weapon or is it was easy to record so if you missed it jump over to rest methods.com forward slash virtual and you can get your copy we jam packed it full to the brim everything that I’ve found to be the most important setting up your short term rentals and making sure you’re earning maximum revenue and highest occupancy but all while not giving up all of your time in creating passive systems so I give you all my resources we go over my actual properties case studies with pre and post code numbers and in my outlook in the future I think there’s a ton of opportunity so if you guys are just getting started or you have several properties already there’s no need to reinvent the wheel get all my tips and tricks things that I’ve learned and save yourself the headache and frustration just head over to rest message star forward slash virtual I know you’ll find a ton of value in it enjoy.

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