At DHRE we love working with investors and most of our agents invest in real estate as well, here are our 7 steps for getting started in investing:
Step 1 Build your team:
Having a team of professionals is a vital part to investing in real estate, you should have the following professionals that know about investing in real estate:
Attorney, Realtor, CPA, Lender, Title agent, Contractors.
That is a good start on building a team, visit our home page for a list of our team that we trust to help you get deals done.
Step 2 Get pre-approved or proof of funds:
To purchase real estate you will need to show the seller that you are ready willing and able to purchase, this happens buy working with a lender to get a pre-approval or showing proof of funds if you are buying with cash.
Step 3 Education:
If you choose an investor friendly agent who actually knows what a good investment is they will help educate you however it is always a good idea to self educate, please listen to our podcasts and feel free to join our meetups. You can also visit our store for in-depth educating content from our team of investor friendly agents and staff including Alex Deacon who has over 25 years of knowledge and owns over 100 rentals in the Pittsburgh area.
We also look forward to connecting with you on BiggerPockets
Step 4 Set Goals:
Goal setting is very important in just about any business and investing in real estate is now a business for you, we recommend you set a first year goal along with a 5 year goal to get started. You can have more goals but a 1 and 5 year is a good start, make sure you write these goals down and evaluate the goals on a regular basis. Making changes to your goals as you go is important to keeping your goals realistic and obtainable, share your goals with your loved ones and anyone else who will listen to help you stay on track.
Step 5 Criteria:
You and your agent will sit down and start a criteria for your first purchase, your agent will then set you up on the MLS for a search that does the work for you. You should narrow your list down to your top 5-10 properties and that will be a good start to go look at properties.
Here is a tip, ask your DHRE agent for a list of off market properties only we have access to.
Step 6 Take action:
The difference between people who are successful and the people who aren’t is taking action, if you find a deal that is what you are looking for and is a solid investment take action! Worst case you will learn from the experience of entering into a contract and getting a home inspection, best case you are on your way to building a portfolio and have your first cash flowing property.
Step 7 Keep learning:
While you are on the way to becoming a successful investor you should always keep learning, here are some of our favorite ways to keep learning:
Read/Listen to books and podcasts, attend networking events, take webinars, make friends with likeminded people, attend open showings, collaborate on sites like BiggerPockets and Facebook groups.
Good job on starting to invest in real estate! Contact us with any questions 412-939-SOLD or email@example.com
If you are thinking about listing your property for sale here are the 7 steps for a successful listing:
Step 1 Fresh:
Anything you can do to make your home feel fresh is a good idea, decluttering your home of photos & knickknacks is a good place to start followed by a good deep cleaning and maybe a fresh coat of paint to a room that could use a more neutral color. Hiring a company to shampoo any carpets and clean ducts can help as well especially if you have pets, you really want to make your home clean and fresh for the potential buyers who will be visiting.
Step 2 Agent:
Choosing the right agent is very important, most agents will tell you want they think you want to hear to “win” your business but make sure they know the market and are not overpricing the home. This agent should be able to tell you a figure based on the condition and size of your home and be able to tell you what your home has or does not have compared to the comps that have sold, choosing the wrong agent can set you back on the goal to sell your home.
Please visit www.dhrea.com/agents to view a list of our highly trained agents who we know can get the job done.
Step 3 Staging & Pre-inspection :
It doesn’t matter if you live in the home or have moves out already we always recommend a bit of light staging to help the potential buyer envision what it would be like to live in your home, it’s the little things that will set you apart from the competition.
It is never a bad idea to get your home inspected before you list it and using that report to make necessary repairs, you should also make the report and invoices for repairs available for the buyers to see and your agent can add it to the MLS for other agents to download.
Step 4 Pricing:
The number one most important thing in listing your home on the market is pricing it right, the home down the street might have sold for $200k but how does your house really compare. Things like size of the home, finishes and the size and shape of your yard can either add or subtract value from your home. Other things like time of year and average days on market should play a part in where you decide to list the property, overpricing a home is one of the largest pitfalls for a potential seller.
Step 5 Marketing:
Your agent now has your home listed on the market and traffic should be coming, in our market the average new listing should get 3-5 showings each week for the first 3 weeks. Make sure you are making your home available for showings whenever they might pop up and we recommend you don’t set a “24 hour notice” or “no showings on” rules that will impede the traffic coming to view your home, you will need to make sacrifices to give your home the best chance of selling.
Step 6 Offers:
If you get multiple offers that is great! Make sure your sending out a multiple offers notice to all agents with offers in and make sure your agent is posting a multiple offers notice on the MLS with a due time and day to try to get more offers in on the property. If you are just getting a single offer you should always counter the offer to make sure you are getting the best offer the buyer is willing to give and before you reject an offer remember the rule of thumb is the first offer you get will be the best offer you will probably receive.
7 Getting to closing:
Your agent will help you through the process but the most important thing is the home inspection period, hopefully you opted for the pre-inspection so you have a good idea of what will come up on any report. If you didn’t then you will be getting a reply to inspection with random items that need to be addressed, this is a negotiable period so you can counter their request with a smaller list of items just make sure you are working with them to keep the deal moving forward.
If the buyer is using a government financing (FHA, USDA, VA) you will be getting a list of items that need to be addressed in order for the buyer to get their loan, we recommend you take care of them but if you really can’t these can be passed onto the buyer or the buyer will have the chance to back out and keep their earnest money deposit.
At closing show up on time with photo ID and it is always nice to bring extra keys and invoices or warranty info for anything you have in the home.
Contact us if you have any questions about this process or if you are interested in hiring one of our agents to sell your home.
If you are thinking about jumping into the world of home ownership but don’t know what the process will be like here is a quick guide to set expectations:
#1 – Start with the basics:
You will need to decide on how large you want the home to be along with any other features you desire, we recommend coming up with a wants vs needs list. This list should break down the things you want in a home but are not deal breakers if you don’t get them and the things you need in a home that you can’t live without.
#2- Know your budget:
Before you speak to a lender you should have a good idea of how much you would like to pay per month including taxes and insurance, this will help your lender come up with a good amount to start with on your pre-approval.
#3 Choose an agent:
Obviously we hope you will choose one of our highly trained agents to assist you but you should probably have an agent in mind that you want to work with at this point, make sure your agent has experience in the area’s you are looking to buy and has the time to work with your schedule.
To view a list of all our agents visit: https://dhrea.com/agents/
#4 Choose a lender:
Having a knowledgeable lender is very important, we also recommend choosing someone local so you always have somewhere to go if you need to sit face to face with someone. Your agent should be able to teach you the difference between a mortgage broker and a banker, the difference between them could help you narrow it down. Your agent and lender hopefully know each other and will work together to guide you through the process.
#5 Home inspection:
Once you find the perfect home you will need to get a home inspection done on the property, look for someone who has years of experience and has good reviews. I am sure your agent will have a few people you can call as well.
The home inspection is your way of knowing the flaws in the property you are buying and hopefully get those flaws addressed by the seller before closing.
#6 Appraisal & Underwriting:
Your lender will help you order an appraisal on the property to ensure the home is worth what you are purchasing the home for, you will receive a copy of the appraisal before closing so you can be even more confident you are making the right move.
Once the appraisal is complete your lender will put you into final underwriting for the loan and get a final approval.
You have arrived to the end of the transaction, at this point your agent should be walking you through the home one last time to ensure everything is correct. After the final walk you will attend the closing where you will sign the documents to complete your purchase, this should take roughly 45 minutes to complete.
You will now be a home owner!
Please reach out to us if you have any further questions: