Day 1. Figure Out Funding and Target Market

People have mentioned that they want to see a step by step when it comes to purchasing properties. As a result, I’m gonna start a blog series here about my next acquisition in residential, which you can scale down to single families.

I’ll be tagging this series of blogs about my next acquisitions with “first time investor”

• Check your bank account and get a preapproval from the bank (would not recommend), but preferably a loan originator that has access to many lenders.

• If you’re going commercial, it’s best to start some conversations with lenders to figure out rates and for proof of funding (I made this mistake by doing this too late recently)

• I’ve personally picked 3 markets, my backyard of Chicago, Phoenix, and Tampa. These are data driven decisions and based on my network/connections in each city.

• I’m frankly interested in cash flowing properties in the path of gentrification, or current long term rentals with potential to become Airbnb’s.

• Nowadays, I’m mostly looking at commercial residential (4+ units) and trying to pay maximum 80-90% of after repair value depending on the neighborhood/type of work.

By having my budget and criteria, it’s a lot easier for me to get in touch with agents/wholesalers or have other investors think of me when they might pass on opportunities outside of their specialty.

I’m currently looking to transform 8 units into 17 luxury units in one of the nicest parts of Chicago and pump cash, although we’re currently still in negotiation, we’re confindent that our offer is furthest in running mostly based on our ability to close and how difficult it is right now to get large commercial construction loans (less competition).

In the next segment tomorrow, I’ll discuss how we got price projections and market analysis done.