Sign Nevada Banking Rental Application Mobile

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what's up guys mike here today i want to go over exactly how i got my first rental property and i'll share with you how you can get your first one too the point of getting a rental property is to obviously build passive income so that way you can play video games all day go out all night and drive lambos so you're at the point where many have been before you and you decide that you do not want to work at a job forever where you can't get ahead there must be a way so you spend countless hours scouring the internet late at night looking for ways to make a buck or start a side hustle and with every click bait search you go deeper and deeper into the internet rabbit hole well you get the picture so after you buy an amazon drop shipping course and a day trader course and find no success you decide to get into real estate and now what do you do so you decide you want to get a bunch of rental properties and have passive income so you don't have to work again this is exactly what i wanted to do way back in 2008 if you're new to real estate and you're watching this video for a first time pay attention because i'm going to share with you exactly what i did to get to where i am today and how you can do it too so way back in 2008 the market was crashing and i was just getting into real estate i started going to a local meetup group for real estate investors where i met this older gentleman who befriended me and i started to spend time with him to learn about real estate investing he ended up becoming my first mentor and i didn't know it at the time but he taught the lessons he taught me have served me well in my real estate investing journey in many ways he shaped the investor who i am today he taught me how to look for distressed properties how to make cold calls how to do direct mail marketing pieces and most importantly how to talk to people and discover if there is truly a deal to be had so i did what most mentees would do i was in my early 20s and i decided hey this guy has a lot of knowledge he's willing to share with me so i went and spent time with him and i worked for free i did all those little errands you could say i was his little errand boy but i didn't mind because i was getting a lot of value out of it and i knew that someday if i applied the techniques and the knowledge that he was sharing with me it was going to pay off so i went to his office and i watched how he made calls i listened to what he said i watched him send direct mail marketing pieces out i watched him put up banner signs and make make marketing signs i went with him on appointments to sell distressed sellers houses and i sat in the living room and watched the techniques he used and watched how he talked to these people to get them to sign over their properties so it was beneficial and it was life-changing for me because i never knew that you could do things like that i learned a lot about communication verbal and non-verbal as well as i learned how to control conversations through different strategies and techniques that he taught me i learned a lot of conversation techniques and how to lead the customer to say that you are the answer to their real estate problem and they need to sell today at the time i didn't know it but i was truly learning was wholesale or arbitrage real estate it's a method where you put a property under contract from a distressed seller for say 60 to 70 cents on the dollar and then you market that contract to a list of cash investors who will then buy that property for 80 to 90 cents on the dollar and you keep the spread although this is a way to make money quickly it's very time consuming and it's very transactional you tend to get caught up in the whole selling business and it's a never-ending hamster wheel that you can't get out of so i eventually started using it to just find rental properties and i said you know what i've saved up enough money i can do this myself instead of always selling off these properties to other investors i'm gonna find a way to buy a property myself and use the marketing that i'm doing to find these properties to cherry pick and get myself the best deal that i can to start off my investing journey so my first rental property was a small duplex i found the owner by doing a direct mail campaign and i got a phone call one day the guy said hey i got your letter he said he was interested in selling his property and i asked him why he told me that he had issues with non-paying tenants that the building needed [Music] a lot of maintenance and that he was out of compliance with city code violations i saw this as an opportunity to get a discount because the property needed some work and he was stressed out with it and just wanted it to be gone this is the type of scenario that you're looking for when you're trying to buy properties at a discount we talked and i went to go look at the property to do an inspection beforehand he allowed me to do that usually that's not the case he allowed me to do that i went and took a look and i came back and i made him an offer he initially rejected the offer i then broke down a list of all the things that i would have to do to get that property up to snuff and then resubmitted it to him and then he ultimately accepted my offer and we closed the deal and i financed that property with 20 down using a conventional loan the reason i couldn't do fha loan was because the property had a lot of repairs and it wouldn't qualify for fha at that time so i bought the property with a conventional loan i got that property for roughly 70 cents on the dollar compared to what other properties that were similar to that was selling in the area i then went in and got the tenants out because they had not paid i evicted them i then rehabbed both units and then re-rented the property and got it out on market i got tenants in there and then i what i did is i had the property reappraised and then with my improvements and then pulled out the cash and then had a mortgage on it with cash in hand and then i went to go find my next property the steps i took to make this happen guys is exactly why i made this video so that way you could learn step by step and go do the same thing too so guys at this point in the video if you've gotten some value for my story do me a favor and hit that subscribe button and smash that like button for me as it really helps my video get put in front of new eyes on youtube so hopefully at this point you have a job where you make decent money and you can save up for a down payment to get yourself into real estate depending on the type of financing you use you'll need anything from zero down to up to 20 down to buy your first rental property but just like a football game you're gonna need a plan to start if you don't have a plan you are definitely gonna fail so start saving because when you come across a good deal you're gonna have to act fast and you wanna have that capital ready to go so now that you have your savings in order you're going to need to get a loan so the next question is is how is your credit do you have a 700 score a 640 score well unless you have at least a 640 it's going to be tough to get a loan or at least get a loan with good rates the point being here that while you save money you need to also be checking your credit report and removing any inaccurate things that are on your report so that way your credit score will go up on a side note guys you can always find a partner that has a killer credit score but if you're coming to the table with a low credit score and no money then you're probably not ready to have a partner for more steps on how to build your credit score up and what factors go into accounting for a good or a bad score please see my other video about credit in the description below and that will explain you exactly what you need to do step by step to get your credit score up to snow so now that you have a down payment down you fixed up your credit score the next thing to do is to make sure that you have your taxes done if you are a w-2 employee your employer will have your taxes prepared and all you have to do is send to your cpa and you should be good to go however if you're self-employed like me a lender will take your two previous years tax returns and compare compare them and then take the average income of both years the next thing on your list to do is to get with your lender and discuss financing options for you based on your income if you're going to try to buy a property with traditional financing from a bank then you're looking at possibly a va loan an fha loan conventional loan or a usda or 203k loan the next thing on your list is to talk to your lender before you do anything if you are going for traditional financing this is necessary if you are going the way of creative financing then you will seek out other types of lenders you will want to know exactly what you qualify for so that way you don't waste anyone's time and secondly if you find the right property you can make an offer confidently knowing that you have the financing to back your offer see chances are that if you find a property that looks like a good deal others have discovered it also you will be competing against those buyers that are looking for the exact same thing you are so this is where having your financing in order and being able to act fast will benefit you the faster you are the better deal you will get so now that we have that in order let's move to the next step looking at properties guys this should be the funnest part of finding a rental property but as you'll come to find out as you make offers and lose out on deals this park can get really old and emotionally draining look at everything that fits within your budget and look for ways to create equity through force appreciation next step is to determine the cash flow of that property to do this you will want to get what's called a trailing 12 from the current owner or landlord the trailing 12 is simply the last 12 months of rental income and expenses this will tell you things from occupancy to vacancy to expenses to capital expenditures all those types of things by looking at the numbers in this way this will eliminate 95 of the properties that you were looking at just based on the numbers alone on the flip side if you're buying a property that was a primary residence and not a rental you'll want to look at the rental rates in that area to determine if after what you're after your mortgage you'll be able to cash flow that property on the flip side if you're buying a house that wasn't previously a rental you'll want to look at the rental rates in that area to see if you'll make any cash flow after you pay your mortgage to get more info on where you find rental rates i'll put a link in the description down below for some websites that i use for that when buying for an investment property the criteria is going to be different than when you buy for a primary residence you need to have the property cash flowing right away or get a cash flowing soon after purchase through forced appreciation and equity keep in mind that at a certain price any property is a great deal knowing your numbers on a property and having a game plan for that property is huge and can't be underestimated you have to know your market rents for the area and the type of property that you have are you doing a short-term vacation rental are you doing a year-to-year lease those rates are going to be different are you buying a property that has rental restrictions due to an hoa in the community you must know these things in advance if you're going to cash flow that property and do it right so to make sure that you're going to cash flow with your rents collected you need to do this next step which is use a mortgage calculator i'll put a link in the description below for that you have to calculate how much your mortgage is going to be you have to calculate pity which is principal interest taxes and insurance those things will factor in to your mortgage rate and thus affect your bottom line so now it's time to apply some strategies to your property hunt you're going to want to look for properties that need minor cosmetic repairs when i say minor cosmetic i'm talking about things like paint like cleaning up the yard like replacing carpet with laminate flooring if you're new to investing and the property you're looking at buying needs a complete gut job i would steer clear of this if you don't have the systems in place or the connections to have the right contractors do the work for you you can get buried and end up having to short sell or foreclose on that property because you ran out of capital to handle all your repairs some things to look for when you're finding a property that needs minor cosmetic repairs would be a new garage door new windows fiber cement siding vinyl siding vinyl windows new roof wood flooring hvac repair kitchen upgrade and a full kitchen remodel so now that you know what types of properties to look for based on renovation now it's time to make offer expect that not every offer will get accepted in fact most of your offers will not get accepted i lose out on many properties because i make offers where the numbers make sense for me the investor if it's any higher than that i will not buy it often where these numbers make sense is lower than what the seller will accept so once you get your offer accepted the next step is to get an inspection done typically you have what's called a due diligence period which is usually about 10 days long during this period you will have an inspector come out and look the property over for such items as roofing flooring hvac electrical plumbing any signs of leaks or mold anything like that once the inspector produces his property report you can then bring in contractors to give yourself estimates for the repairs that need to be done this is good because you can then go back to the seller with leverage and actually ask for a price reduction if you want to incur the repairs yourself or have the seller pay out of their own pocket to do the repairs my suggestion would be that when the inspector does their uh inspection to go with them and learn because they will train your eyes to look for things that you wouldn't look for or see or even know about there's so many things on a house that you would never think that matter and a good inspector will share those things with you and really bring your knowledge level up when it comes to looking at a property and seeing things that the untrained eye does not see this will ultimately make you a better investor so once you get all the negotiations worked out and repairs it's time to open escrow staying connected with your lender and your agent here is very important as they will share with you how much money that you have to bring to the closing table so once you've closed on the property the next step is to renovate it having relationships with contractors will be beneficial to you here as you'll need to provide them with your estimates on repairs so that way they can see the scope of work that they're gonna have to do to make your proper really to make your property rentable so the next step guys is to renovate your property you're going to want to get with your contractors so that way they can give you the estimates and how much the work is going to cost so you can fetch the highest rent possible for the area that you're in to learn about estimates and dealing with contractors see the link in the description below where i you can reference my other video on dealing with contractors you will need to have a budget figured out so that way you don't go over budget and you can get your property rehabbed renovated in the appropriate amount of time so you can get it rented out and cash flowing as soon as possible you're going to want to control all the materials that your contractors use by this i mean you need to get a list from them of what they need then you go buy it and disperse it on the job site day by day don't let your contractors go buy stuff and and then charge you back because what they'll end up doing is they'll either buy the most expensive stuff or they'll buy a bunch of extra stuff and use it for other jobs that you're paying for so once you've completed your rehab it's now tim to rent the property out you want to make sure you take super high quality pictures and post it on as many sites as you can i use sites like apartments.com realtor.com trulia zillow there's a bunch of other sites i'll put some links down below in the description for you the more exposure that you give your rental property the higher chance you have of finding a quality tenant to rent it at this point you should know your strategy for the rental property meaning are you going to do short-term vacation rentals or a long-term traditional lease you can take on the risk of renting the property out yourself but my advice would be to pass that task off to a property manager to handle it the property manager will vet the tenants and run them through the appropriate criminal and credit background checks to make sure that you get a high quality tenant so now that your property's rented the next step is to begin the process all over again and start looking for another property if you can get a traditional loan again then go for that if you can't get a traditional loan then you're gonna have to look at creative financing and i'll talk more about that in my next video so hopefully now guys you have the knowledge to where you feel confident that you can go out and begin the process of finding your first rental property i can tell you from experience it's super addicting once you get that first check every month that's passive income coming from your rental property the only thing you want to do is get more and more and more and increase that number once you make enough passive income to exceed your monthly expenses you can now officially retire and do whatever you want all day you can play drums all day you can play video games all day hell you can even you can even sleep all day all while driving a lambo so guys if you got some value out of this video do me a favor and consider subscribing and if you don't mind smashing that like button for me as it really helps out my video get put in front of new people on youtube so with that being said i'll see you on the next video