How To Buy Your First Rental Property (Step by Step)

How to invest in real estate: Here’s exactly how you can buy your first rental property, step by step, and the process involved. Enjoy! Add me on Snapchat/Instagram: GPStephan

Join the private Real Estate Facebook Group:

Step 0: Because this is where it starts, you’re going to need a downpayment. How to save for a house:

Step 1: Unless you’re buying a property outright in cash, which I have a feeling is very few of you watching…get your credit in order. How to build your credit:

Step 2: Make sure you have your tax returns prepared. If you’re self employed like me, a lender will ask for your last 2 years of tax returns and take the average income of those two years. Be ready for this!

Step 3: TALK TO A LENDER FIRST BEFORE YOU DO ANYTHING. First, you’ll know EXACTLY what you can qualify for so you won’t waste your time. Secondly, if you find the right place, the lender already has all of your information so you can hit the ground running. And anytime you find a spot that’s worth buying, chances are, you’re competing with other people who want the exact same thing. So timeliness really, really matters here…the faster you are, the better the deal you can get.

Step 4: BEGIN LOOKING AT PROPERTIES. This is really meant to be the fun part…look at EVERYTHING you possibly can within your price range.

Step 5: Determine cash flow. The reality is that 95% of properties just don’t make sense to purchase for an investment…they lose money. It’s also the reality that at a certain price, EVERYTHING makes a great investment - it’s really important to understand these numbers.

Step 6: Look at properties that need minor cosmetic renovations!

Step 7: MAKE OFFERS ON PROPERTIES! Expect that not every offer will work out…for me, I lose out on many offers because I offer a price where the numbers make sense, and if it’s any higher than that, I won’t buy it.

Step 8: Do your inspections! Make sure to do as many inspections as you possible can. Check the roof, the foundation, electrical, plumbing, if there are any leaks, bring in contractors for bids if it needs work…the more you do, the better.

STEP 12: SCALE UP!

Suggested reading:

Favorite Credit Cards:

[GrahamStephan]

Here’s a list of the other videos that explain the process a little further that pertain to this video - enjoy!:

How to save for a house:

How to build your credit:

How to find a good deal:

Three ways to make money owning real estate and cash flow:

Mortgage Calculator:
www.MortgageCalculator.org

Most profitable renovations:

Biggest Renovation Mistakes:

Hidden escrow costs:

How to screen a tenant:

The Best Real Estate Tax Write Offs:

Why I don’t flip real estate:

The 5 Golden real estate investing tips:

[hebwowvwhossow]

I’m 13 but I like watching these vids to give me a good idea for when I become older

[OliverTilney]

If you wanna be successful, you most take responsibility for your emotions, not place the blame on others. In addition to make you feel more guilty about your faults, pointing the finger at others will only serve to increase your sense of personal accountability. There's always a risk in every investment, yet people still invest and succeed. You must look outward if you wanna be successful in life.

[damianpokoj]

Finally someone who's telling like it is - be patient, save, build your credit - not trying to sell us "secret" formula that only chosen few know....
Thank you for being real.

[bestgirlie]

Graham, thank you for shedding light on this issue please tell us how to use this recession to make gains! grew my reserve of $110k to over half-a-million dollars between Dec. 2007 and Aug.2008, but the market is different now

[adammcallister]

This guy tells it like it is. No gimmicks or ploys, I really love that! Thanks for sharing your wealth of knowledge Graham.

[Pandorash]

This advice is absolutely perfect!! My late husband and I made the bulk of our net worth (approx US$1.95m at 35) from real estate flipping and rentals and we follow everything you’ve said 👍🏻

[thesportsguruu]

As one who has been into Real Estates for a long time, I'd suggest you don't go into this at his time. Find other lucrative investments, the market is in a very bad place right now

[lildudat]

I love the step by step. I think people first coming in to buying often don't know where to start or how to move forward. A simple, broken down step by step that goes start to finish is incredibly helpful.

[Alex-wxbe]

How about a tutorial about the process of renting it out?

Like

How long it takes to get a tenant?
Turnover from a tenant?

[youngserg]

Graham!! I've been following your channel on YouTube for just about 2-3 months!! I closed yesterday on my first rental, Four house property!! You'd be proud, my man!! Everything you mentioned on this video is what I went through!! Thank you for your work!!

[sfraschetti]

I just recently saw this video as I'm currently learning about real estate. Probably one of those most informative and best real estate videos I have ever watched!

[erikacristina]

Great video. I watch several youtube videos on how to trade in the market but haven’t made any headstart because they are either talking some gibberish or sharing their story
of how they made it and I do not want to make mistakes by taking risks in my own handswil

[abacab]

Guys like this never buy Lambos. They'd rather have another rental house.

[BeastmodeJones]

ima get my first one in March..u got me motivated man

[tarnish]

Matte black for sure! Thank you for some inspiration I’m 25 and I feel like I’m about to open the doors to the rest of my life. Thank you.

[marie-leontineroyer]

The economy hardship, recession, unemployment and loss of job caused by covid pandemic is enough to push people into financial ventures.

[lachlanprinsep]

Quite educating i must say, we all know making money is easier through investment, don’t save money, buy assets, trade, invest but make sure you run a background check up on your source before investing, Ensure You are investing through a solid foundation source to avoid blowing money away

[JeanEstevez]

Numbers are wrong 2600 on mortgage and 3200 for rent is only 600 cash flow

[alejandrajoseluis]

Do you want to learn more on investment principles and strategies?