5 Things To Do in 2022 If You Are a New Real Estate Investor

2022 is almost here and I want to make sure you are ready to get your first (or second or third…) property. These are 5 tips for new investors, but they apply to all investors as a review mechanism. I go into detail on each one, but here are the 5 things to do in 2022 if you are a new real estate investor:

1. Find an REI Meetup

2. Connect with an investor-friendly real estate agent

3. Lock in your financing vehicle or funds

4. Finalize your investment choice

5. See one property a week

Find an REI Meetup

Nothing can help you feel more comfortable as a new investor more than a meetup group with other new investors looking to do the same thing that you want to do. From the learning to the feedback to the camaraderie to the advice, a good real estate investors’ meetup can pave the way to your first property.

Too many new investors are looking for paid coaching or mentorship before they have even done a deal and that is just paying for someone to make you feel comfortable, but how can you feel comfortable when you just paid someone to get you there? You have to get yourself there by connections, research, and a willingness to pump the brakes.

We’ve been doing Zoom meetups for almost two years now and between our New Jersey and Philadelphia Zooms, investors in these groups have closed more than 30 deals just in 2021. If you want to get on the mailing list, which has links to all of our weekly events, you can do that here.

Connect with an Investor-Friendly Real Estate Agent

Most real estate agents don’t know anything about working with investors, especially new investors. This is why it is so important to find yourself an investor-friendly real estate agent who wants to show you as many properties as it takes to find you the right investment (within reason).

An investor-friendly agent is one who also invests, but who also closes a lot of deals as an agent. You need both because you want someone who knows what you are looking for as an investor, but also an agent who has the connections and the savvy to present your offers in the best light to the listing agents when the time comes.

Relationships are extremely important in the agent game, especially for new investors, because we have to present you as a full package buyer and the right one for this property in order to win. At Streamlined Properties On-Market, brokered by eXp Realty, we have more than 25 investor-friendly agents in 5 different states available to assist you. You can see our full roster here.

Lock in your Financing Vehicle of Funds

Too many new investors want to get looking, but don’t even know what they can afford and how they will finance the property they fall in love with. You need to have this locked in before you start looking or else how will you really know what properties to look at?

Whether you intend to do an FHA house hack, a 203k mini-flip, a conventional single-family investment purchase, or whether you intend to use hard money, private money, a line of credit, or your own cash, you want to have it all in place when you start looking just in case you find the one.

The first thing listing agents and sellers look at is the financing because an offer number is just a number without proof that it can be delivered. You should print your new proof of funds every month if you are a cash buyer and you should always have a current pre-approval letter if you are using a traditional mortgage or a letter of record for hard or private money.

Finalize Your Investment Choice

The hardest investors to help are the ones who are just looking for a good investment. If you are open to flip, BRRRR, house hack, or any combination, you aren’t focused enough yet for us to help you. Our meetups can help you get there, but you have to finalize your investment choice.

That doesn’t mean that it can’t change over time, but if you send an agent looking for a good investment, it’s like looking for an ice cream in a freezer the size of a football field when you didn’t tell them you only like Rocky Road. We need to know your target so we can help you aim.

So, do the research, swap stories, talk strategy, but hone in on what you want to do. Are you ready to flip? Are you comfortable with BRRRR? Are you interested in reverse BRRRR? Figure it out and we are on our way.

See One Property a Week

This is where the rubber meets the road. If you are analyzing properties, but not seeing them, you are not getting where you need to be in order to be ready to buy. Until you see, smell, touch, and feel a property, you don’t know what the numbers mean.

What does 250k get you in your neighborhood and what does it feel like? What about 400k? How does that smell comparatively or how much work does it need? And this is why an investor-friendly agent is so imperative. In order to get comfortable making an offer, you have to see a bunch of properties. You have to kiss a bunch of toads. And there are a lot of house toads out there.

Make it a goal to see one property a week and make it a good one. One you can learn from and one that is close to what you are looking for.

Are your goals set for 2022? In case you missed it, this might help you get them set before the end of the year:

If you are looking for an investor-friendly agent or just a group of investors to hang out with every week, we have you covered. We hope to see you at one of our events soon.