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Investor Tips

Start planning by knowing how much you want to invest.
I sincerely believe everyone should be diversified in stocks, bonds, cash, real estate and other stuff. It's not wise to have all your savings in one of these. Keep this simple. If you have $100k to invest, put no more than $30k of it in real estate. If you can put down 30% and get the remaining 70% financed, go for it. Once you know how much you can put down, call my mortgage broker or your favorite bank to see how much real estate you can buy with the amount of money you can invest.
Avoid partnerships.
If your partner is your spouse, that's ok. If a partner is a relative or best friend, STOP. These rarely work out. The trouble with partnerships isn't getting into them, it's getting out of them. Conflicts flair up every single time when it comes to making decisions on repairing, selling or renting the property. In the last 20 years, I have seen one blow up after another - friendships destroyed forever over a house. Tragic.
Start modestly.
If a lendor says that you are qualified for $300k, start by purchasing your first one at $100k. Making a mistake on a $100k property is much less painful than a $300k property. My goal is to help you avoid them but you are destined to make them on your first go around.
Avoid properties that don't appeal to a standard family.
Focus on a single family home, 3 bed, 2 bath, 2 car garage. A "SFR-3/2/2" will almost always out perform a 2 bed condo in an upscale neighborhood. The bulk of the population is "Johnny Lunchbucket" with a wife, 2 kids, a dog, and a pick up truck. You want to feed the masses what they want, not something that will impress your friends. Generally, I take the mystery out for you by showing you specific income returns on every property I survey.
Avoid properties that require a lot of maintenance.
In Las Vegas, this would include homes with pools, grass or anything that requires attention. Vegas is in a hot dry desert with wicked winds that will kill anything in a week if ignored. Pools are nice but about every 4th tenant will destroy your pool pump or collect a cloud of mosquitoes. The maintenance always eats up the modest increase in rent. Most of my properties have pools and I have learned to regret it. Another type of home to avoid would be homes with wood siding. The sun just bakes off the paint.
Avoid HOAs that have stringent rules.
If the investment property you purchase has grass in a neighborhood patrolled by Nazis, you will go insane. HOA fines have teeth and your property could accumulate liens without you knowing about it. HOAs are ok if taken in small doses. You can usually get a feel of the neighborhood by checking the status of the yards and vehicles. If everything looks spotless, be wary.
Gated communities don't mean they are safer.
When you see the pizza guy roll through the "exit" you will have all the proof you need. Guarded communities are marginally better but not by much. In fact, you will discover that guarded/gated communities take longer to rent or sell because no one can see them!
Get your funding approved before you get here.
Half of the investors I meet are shocked to discover that they are no longer qualified to purchase an investment property. Wouldn't you rather enjoy a nice dinner/show than drive around in the heat looking at stuff you can't buy? If you want to go look at stuff you can't afford, I recommend Ceaser's Forum shops. It's air conditioned and full of pretty people looking in the windows.
Don't fall in love with a property.
On your "scouting" trip with me, we will look at a handful of properties that are the "cream" of the week. One of them will be gone by the time you have dinner. A couple more will be gone by the time you check your email when you get back home. When you come back and we actually start "hunting," there is a less than a 10% chance you will get the property you want. You will be fortunate to get andy property. Most investors have to put in 10 offers to get one accepted. Flying out here to put an offer on one property is a massive waste of your time. Do you really want to fly out here 10 times?
Don't imagine yourself living in the investment property.
You are not a renter. A renter wants something clean, affordable and close to work. Period. So many investors poo poo a property because they can't imagine themselves living in it. Remind yourself that you are a cold heartless investor looking for returns, not your love nest. Your friends won't be living there either so you can leave them at the hotel. If you want to bring someone along, bring your relative who has some experience investing in real estate.
Get a large capacity laser printer and fax machine.
Every week an investor loses a deal because they had to run to Kinko's the next day to get a fax out. You will drive me to drinking with one of those small fax machines with a roller. The best thing to get will be a combination unit and make certain it's a laser printer - NOT AN INKJET. Seriously. I have seen investors lose $20k in equity because they don't have a $200 machine. The number of documents you have to sign is unbelievable. You are also going to need it later for faxing lease agreements, work orders etc.
Ignore "Days On Market."
What makes all the difference in the world is how long a property has been on the market at the current list price. For example, if the price dropped $20k yesterday, the property won't last until the end of the week and it is recommended that you bid above list. If the property is in poor condition and been on the market for months at the current price, it would be safe to bid below list.
Be careful about condo conversions.
If a unit is under litigation, you will not be able to get a loan to purchase the property. It also means that if you paid cash, you could be stuck with the property until litigation is resolved - if ever. Many of the "Condo Conversions" are in litigation so be very careful. Many newbie investors step on this land mine.
Bring your digital camera when we go hunting.
By the time you get an offer accepted, you will have completely forgotten everything about the property. Take a picture of the address followed by key features that will jog your memory. It's also a good idea to photograph obvious problems so you don't forget the repair items.
If you find a house you want, don't mess around.
Cream properties get taken in a day or so. Every week, an investor loses a deal because it took them 3 days to fax a contract back. Remember, there are thousands of other investors combing these properties that are quick and jump on deals immediately. If it takes you 3 days to fax an agreement back after you made a decision, you will NEVER EVER NEVER get a cream property.
Decide what you want to do with the property before you close.
I don't care what you do with your property. You don't have to use me to get it occupied by a tenant. If you want to burn through 3 months of vacancy, that's your business. However, if you want to make money quickly, decide on which path(s) you want to take. Here are the 4 property management solutions. This is a good time to start getting familiar with your options.
Get your "Ya Yas" out before or after we meet.
Vegas is a lot of fun. Have fun, enjoy a show and party hard if you want. Get this out of your system. If you are hung over or tired, we are done. I spent hours preparing for your arrival and I won't show you any mercy if you are not mentally on top of your game. Get some rest, the ride you take with me will be intense.
Purchase used appliances.
Spending thousands on new appliances is wasted money. If you elect to just rent the property, your tenants will probably trash them or steal them. If you lease/option your property, you can even avoid purchasing them all together. For some reason, this tip never hits home with newbie investors. After you have purchased your fith washer you will get it.
Start marketing the property immediately.
During the inspection, I bring my crew to give you an estimate on repairs and I begin marketing the property immediately. The ideal scenario includes a crew busting through the door the moment we close and bringing the property up to standards in 2 days. Too many investors lose an entire month of income because they jacked around getting estimates. If you plan on doing the rehab, schedule your crew immediately!!!
Don't dump a bunch of money in the property!
No matter how much I preach about this subject, nearly every investor puts too much money into their property. Perhaps it's an "ownership pride" issue they have been brainwashed with over the years. First of all, your tenants will destroy all that beautiful carpet, paint and upgrades you so thoughtfully put in. Then you are going to get pissed because you can't imagine someone living like a typical renter. Lastly, your upgrades will never be fully recovered by the meager increase in rent. The only time you should dump money in a property is when you are ready to sell. That time is a long way off...