Introduction
The 90 Days to your 1st Rental Property Program is NOT for everyone. This video assumes:
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You have purchased real estate before (this is not your first real estate transaction)
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You DO NOT want to live in the property. This will be a Non-Owner Occupied real estate acquisition, which means you have 25% down payment available (at least $100k)
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You want a straight forward, Turn Key acquisition. You DO NOT want to mess with construction or renovations
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Decide + Commit
Chances are you know you SHOULD invest but there's something holding you back. What is it??
Common Resistance to Real Estate Investing
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Might believe real estate investing is high risk or too hard/too expensive in this region.
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Might believe that real estate investing will take up all their time, like it is another part-time job they don’t have time for.
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Believe real estate salespeople are either: Snake Oil salespeople and / or incompetent.
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Deal Selection
After you've committed to purchase investment real estate, you absolutely must understand how to analyze deals, so you know what makes a good deal. This is the only way to feel fully confident in your purchase.
Next, get spouse / partner on board and obtain necessary financing / Pre-Approval.
Finally, set buying criteria.
The worst decision is no decision, the best decision is one you can justify.
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Make Offers + Due Diligence
Making offers on Investment Real Estate is a little different than the typical owner occupant transaction. We are looking for property that meets your buying criteria and not too concerned with what the property looks like or how it makes you feel. Once a property meets the criteria, we go ahead and make the offer. Once accepted by the seller, we have mutual acceptance and we begin the Due Diligence Process.
Due Diligence includes satisfying our standard contingencies including Property Inspection, Lease Review and Financing. This is when we view the interior of property, hire a property inspector to check major systems; Review all leases, rent roll, and Profit and Loss statements to confirm the information originally presented by Seller and their broker. If anything comes back less than what we expected, we use this to negotiate or back out of the deal. Once we come to terms after any needed negotiates, we are in Full Mutual.
The last step is the bank appraisal, assuming this comes in at value, we move to close.
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3 M's of Real Estate Investing
The 3 M's are Mortgage, Management + Maintenance. These are the 3 largest expenses a real estate investor can expect to pay.
Mortgage
The mortgage expense is determined when you buy. The purchase price, down payment, interest rate and loan terms dictate the actual monthly amount; By the time you own the property, there is not much you can do about the mortgage payment other than refinance.
Management
Property Management is the first line item to be eliminated by “mom + pop” real estate investors. Depending on portfolio size and location, management can cost between 5% to 10% of gross income. Many owners feel self-managing reduce expenses, therefore increases the value of their property. However, these efforts often go unrecognized as buyers generally include property management cost in their acquisition analysis.
Maintenance
One time and recurring maintenance costs are the 
expense line savvy owners and managers alike focus their efforts, and rightly so! This is the line item that we have the most control over and can make or break any real estate investment.
Most self managing owners are over spending on maintenance and repairs because they are charged a higher amount by vendors. Vendors charge less for regular, reliable work; Small portfolio owners struggle to keep vendors working regularly, so they end up paying a bit more. In addition to this, many self-managing owners slack on regular maintenance and inspection items, which result in higher maintenance costs down the road. Depending on property size, type and location, property maintenance can cost up to 30% of gross income!
Sagareus Real Estate
When I established Sagareus Management Service, I had an idea-- if we can reduce maintenance costs enough to completely offset the management cost, we will create a win-win scenario for our Investor-Clients. This will in turn allow our clients to focus their investing efforts on securing better and/or more financing.
In other words, IF we create and operate a Maintenance system so well that our clients realize the investment returns their Advisor originally sold them, THEN our clients will have more resources available to acquire more rentals. Our clients grow their portfolios, our team increases sales and assets under management. Everyone wins!
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Own Your Future
In the Seattle Region, Real Estate doubles in value every 10 years (give or take).
Don't wait to buy real estate; Buy Real Estate and Wait!
Contact my Office to Get:
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A copy of Deal Analyzer Template
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Access to Off Market Opportunities
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Referral to Investor Friendly Lender, as needed