Finding Your First Real Estate Investment San Francisco CA

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Remember what Confucius said? "A journey of a thousand miles begins with a single step." Well, the same goes for developing your skills in locating a real estate investment. There are a few basic steps you'll need to complete before getting to the property buying stage. This article is geared toward helping you get your first couple deals done.

1) Determine a location and strategy

Define the area you want to invest in based on economic fundamental research; this includes breaking down your criteria to find the best neighborhood to suit your investment style. Next, you'll want to determine your strategy. Are you specializing in long term holds (and if so, how long will you hold)? Short term flips? Renovation deals? Foreclosures?

Tip: Review your financial plan and personal goals for the next 15, 10, five and three years. This will help you decide which strategy to use when looking for your property. Start from the end goal and work backwards.

2) Get pre-approved

Do you have your financing in place? Get pre-approved. You may not always know where your financing is coming from, but it is less stressful to have a few options lined up, and doing so makes you look like the professional you are. Be certain to have a back-up plan, or Plan B, to close your deal if things don't go as expected at the bank.

Tip: Before you go to the bank, prepare a detailed financial binder. Include your employment history, tax statements, asset and liability sheet as well as current financial statement. Add a cover letter explaining your goal (if you have a specific property you want to purchase, add the details here) and a color photo of yourself.