REAL ESTATE INVESTING PACKET

Getting Started in Real Estate Investing

Real estate investing isn’t just about buying properties—it’s about knowing the market, understanding financing options, and having the right strategy. With 22 years in real estate and personal experience as an investor, I’ve seen what works and what doesn’t. Here’s what you need to know:

Step 1: Define Your Investment Goals

✅ Are you looking for long-term rental income or short-term profits through flipping? ✅ Do you want to invest in residential, commercial, or land development? ✅ What level of risk are you comfortable with?

💡 Pro Tip: Wall Street and global investors are pouring money into U.S. real estate. If they see it as a strong investment, it’s worth considering for your portfolio, too.

Step 2: Research the Market

✅ Analyze market trends, property values, and rental demand. ✅ Look for emerging areas with potential appreciation. ✅ Understand local zoning laws and development regulations.

💡 Pro Tip: In my market, we’ve seen active listings shift dramatically over the years. Understanding supply trends gives you an edge—rising inventory might mean better deals for buyers, while low inventory favors sellers.

Step 3: Build a Team

✅ Work with a knowledgeable real estate agent (I’ve never invested outside my market without using a local expert!). ✅ Connect with lenders who specialize in investment properties. ✅ Hire an experienced contractor, if considering renovations or new construction. ✅ Consult with a tax advisor to understand investment implications.

💡 Pro Tip: I’ve worked with the same home inspection company for 21 years—having trusted professionals on your team helps avoid costly mistakes.

Step 4: Secure Financing

✅ Consider traditional mortgages, hard money loans, or private financing. ✅ Explore investment-specific loans like DSCR (Debt-Service Coverage Ratio) loans. ✅ Look into land & construction financing (more details below).

💡 Pro Tip: Financing isn’t just about getting a loan—it’s about structuring the deal correctly. I’ve helped clients secure properties with creative financing strategies that maximize returns.

The Process of Buying Land & Building New Construction

I’ve guided buyers through the process of purchasing land and building from the ground up. Here’s how to do it successfully:

Step 1: Identify Suitable Land

✅ Choose land in a desirable location with future growth potential. ✅ Verify zoning restrictions, access to utilities, and development costs. ✅ Conduct a feasibility study, soil testing, and environmental assessments.

Step 2: Purchase the Land

✅ Work with a real estate agent experienced in land acquisitions. ✅ Secure land financing or pay in cash for better leverage. ✅ Obtain title insurance and verify clear ownership.

Step 3: Develop Plans & Obtain Permits

✅ Hire an architect or builder to draft site plans. ✅ Submit plans for city approval and acquire necessary permits. ✅ Ensure compliance with local building codes and HOA restrictions.

💡 Pro Tip: Buying in the City of Phoenix? Use Kirsten’s standard plan Duplex! A standard plan is already approved, so all you need is a plot plan for the land.

Step 4: Secure Construction Financing

✅ Construction loans are typically short-term and convert to permanent financing. ✅ Work with a lender who offers one-time close loans to simplify the process.

Step 5: Build the Property

✅ Hire a reputable builder and set a timeline. ✅ Monitor construction progress and budget to avoid delays. ✅ Conduct inspections at key milestones.

Step 6: Exit Strategy

✅ Sell for profit or refinance into a long-term rental loan. ✅ Use a 1031 exchange to reinvest gains tax-free.

💡 Pro Tip: Planning for your exit from day one can save you thousands. Whether it’s renting, selling, or refinancing, having a strategy in place before you build is key.

Investment Lending Options – Including Land & Build Financing

Financing your investment property can take different forms depending on the type of project. Here are key options to consider:

Traditional Investment Loans

✅ Conventional Loans – Available for 1-4 unit properties, typically requiring 15-25% down. ✅ FHA & VA Loans – Not typically for investment, but FHA allows house hacking with 3.5% down.

💡 Pro Tip: House hacking is an underrated strategy—live in one unit, rent out the others, and transition it into a long-term investment.

Commercial & Portfolio Loans

✅ DSCR Loans – Based on rental income rather than personal income. ✅ Commercial Loans – Used for multi-unit, mixed-use, or larger projects. ✅ Portfolio Loans – Offered by private lenders for investors with multiple properties.

Land & Construction Loans

✅ Land Loans – Higher down payments (20-50%) and shorter terms. ✅ Construction Loans – Funds are released in stages as construction progresses. ✅ One-Time Close Loans – Combine land purchase and construction financing into one loan. ✅ Builder Financing – Some developers offer in-house financing for new builds.

💡 Pro Tip: One-time close loans are a game-changer—they simplify the financing process and reduce costs.

Alternative Financing Options

✅ Hard Money Loans – Short-term, high-interest loans ideal for flips or fast purchases. ✅ Private Lending – Individual investors willing to finance deals at negotiated terms. ✅ Seller Financing – Property owner finances the sale instead of a bank. ✅ Self-Directed IRA or HELOC – Using retirement funds or home equity to invest.

Final Thoughts

Real estate investing offers numerous pathways to financial success, but the key is careful planning, solid financing, and a strong team. Whether buying land to develop, flipping houses, or building a rental portfolio, a strategic approach will set you up for success.

📞 Ready to take the first step? Let’s connect and discuss your investment goals! 602-505-0860