SMART Real Estate Investing System

Introduction to SMART Real Estate Investing

Getting Started

One of the advantages of 1-4 residential income property investing is that it is easy to get started and build your assets. First-time buy and hold investors will need some guidance, and experienced investors will want to review their successes and grow their equity over time.


What Are You Trying To Accomplish?


The first question you need to ask yourself is: "What am I trying to accomplish?" You may know other investors who have had some success, or you may have some savings or other investments that are not doing as well as you would like and want to better leverage your assets. Real estate is a fantastic vehicle for doing that.

We cover "Why Invest In Real Estate" in another section, but your choices basically boil down to:
  1. Monthly Income
  2. Long Term Equity Gain
  3. Combination
You also need to know if you prefer hard-dollar returns or are looking for a certain return on investment (ROI). For example, by putting a larger down payment on an income property, you may achieve a larger dollar return, but your percentage may be less. It's an interesting process.


It's A Business!

Experienced investors will tell you that making money in real estate takes a lot of work. It is not just a hobby. It takes focus and dedication. There will be ups and downs, successes and challenges, but by learning how it works and sticking to it, you can build equity and accomplish your investment goals over time. Many eventually become full-time professional real estate investors.

Build A Team
Surround yourself with professionals. You will need to deal with many different types of people while building your real estate assets, including:
  1. Real Estate Agents
  2. Lenders
  3. Appraisers
  4. Property Inspectors
  5. Tax Professionals
  6. Insurance Agents
  7. 1031 Exchange Accommodators
  8. Contractors
  9. Painters
  10. Electricians
  11. Plumbers
  12. Property Managers
  13. Attorneys
It's important to find the right people for the job: experienced professionals whom you can trust to work in your best interests, and communicate effectively and honestly.


Determine Your Specific Requirements

There are many factors to consider when determining exactly what your investment goals are. Over time, you will refine them and get better at selecting property features that work for you. We will help you throughout this process.

Here is a checklist that you can use to get started:
  1. Area
  2. Price Range
  3. Down Payment
  4. Total Amount To Invest
  5. Minimum Cash Flow
  6. Gross Rent Multiplier
  7. Cap Rate
  8. Return on Investment Goals
  9. Number of Units
  10. Owner Occupied
  11. Self-Manage or Professional Property Management
  12. Property Condition
  13. Specific Configuration
  14. Rent Control