If you’re very new to all of this, you’re probably wondering how to dive in to the wonderful world of buying rental property. I’ll share with you what worked for me, and it involves 5 specific steps:- Find a good real estate agent
- Practice running the numbers
- Conduct physical inspections (drive-by’s & showings)
- Make an offer & negotiate
- Manage the contract processSTEP #1: FIND A GOOD REAL ESTATE AGENTEventually, you will need your own “team,” including a real estate agent, mortgage broker, insurance broker, title company, attorney, home inspector, and a handful of trustworthy contractors. But with the exception of a real estate agent, your team does not need to be brought together right out of the gate. You will gradually assemble it as you go.STEP #2: PRACTICE RUNNING THE NUMBERSAsk your new broker to send you all the active 2-8 unit multifamily rental property listings in your target area, and practice running the numbers to identify the most beneficial ones. As long as you know a simple formula and have a few key numbers from the property, can use those numbers to do rapid-fire “back of the envelope” calculations to quickly screen properties for financial practicality. Read my property valuation article to learn how to do this.STEP #3: CONDUCT PHYSICAL INSPECTIONSOnce you have a list of financially viable multifamily rental properties, take some time to do drive-by’s. Whether the numbers work or not, you do not want to get any property in an especially bad area (in fact, you’ll find that the numbers usually work best in such areas…you get what you pay for!). Plus, while not a flawless science, if the outside looks like it’s falling apart you may want to pass.After this process, you will have a list of maybe 3 or 4 properties to look at with your Realtor, instead of, say, 10 or 15. Have your Realtor schedule weekly showings, and bring a notebook to jot down notes so you can later use this info to adjust your bid amount.Keep physically inspecting properties with your agent in this manner every week and do not get discouraged. The majority of rental properties you come across will be poorly maintained and/or overpriced. Tenants beat them up, and many, many landlords could care less about maintaining their investment.So, buying rental property takes time. All I can say is be patient, and remember that the more deals you inspect, the better deal you are likely to get when you finally pull the trigger.STEP #4: MAKE AN OFFER & NEGOTIATEOk, so you’ve run a bunch of initial numbers, did a bunch of drive-by’s, and physically inspected a bunch of hot prospects with your agent. Finally, you’ve found a 2-8 unit multifamily rental property you’d like to purchase. Time to negotiate!STEP #5: MANAGE THE CONTRACT PROCESSYippee, your offer was accepted! So now what? Well, there are various steps that round out the process of buying rental property:- Get the property “under contract”
- Initiate title work; note that some states require an attorney
- Conduct a property inspection
- Get an appraisal
- Arrange financing
- Get property insurance
- Get a property survey
- Review settlement documents and close the dealThis may seem complicated if you happen to be new to all of this, but it’s really not. After you go through the entire process once, you’ll be ready to start buying rental property like there’s no tomorrow!
Start Buying Rental Property With This 5-Step Process
10 Easy Saddle Fitting Tips
If you want a good fit take a few minutes and answer these basic questions.
1. How much does your horse weigh? If a 1000 lbs or more, look to a Full Quarterhorse Bar (FQHB)/wide saddle.
2. What kind of withers does your horse have? Mutton-withered? Look to a FQHB if your horse is anywhere close to a 1000 lbs. i.e. 900 lbs or more.
3. Consider your horse’s back. Is he wide or narrow? Can’t tell? A wide back will require a FQHB. A narrow back will need a semi-quarterhorse bars.
4. Is your horse short backed? Look for a shorter skirt or round skirt saddle. You don’t want the saddle skirts to rub the horse’s hips.
5. Is your horse gaited? Seriously consider a gaited saddle. Gaited saddles have more rock with wider bars in the front and are smaller in the back to allow for the movement of their shoulders.
6. What is your budget? Be reasonable in your expectations. Leather saddles cost more than cordura saddles. You will find few leather saddles for under $500, so be realistic. Most of the time you will get what you pay for.
7. Consider what you are going to do with this saddle. Yes, the trail saddle looks nice, but you won’t rope off of it for long.
8. What seat size do you need to look for?
9. What saddle pad will work? Most horses do not need special pads, but some horses do. Think about what will work, and do the necessary research.
10. Answer all the questions. All these questions need to be considered to insure a good fit. If you don’t answer all the questions you may find a saddle that fits and you might not.