出租新手的“百，十，三，一，定律”

出租新手的“百，十，三，一，定律”
100-10-3-1 Rule for beginner RE investors

For a beginner RE investor, somebody reads tons of book, others talk about buying a rental for 3 years. Others might jump right in and buy the first house they see.

All the preparation (reading books and talking to seasoned investors) is needed. However, nothing beats first-hand experience. For the RE investors, first-hand experience would include actually looking at houses, knowing the potential tenant, analyzing cash flow, and finally having an exit strategy.

To get the right amount of experience, I've heard of the 100-10-3-1 rule. It goes like this:

1) 100: Look at these many houses, analyze each house. See why it does/doesn't fit your investment strategy, pay special attention to the collective tenant group, income/expense, management, exit strategy.

2) 10: After looking at 100 houses, make 10 offers. Of course, not all offers will be accepted. But that's OK.

3) 3: Number of houses going into contract. After you get the contract, now it's time to do inspection, arrange financing, have your lawyer/partner review the contract. Some might still don't work.

4) 1: Number of house eventually bought. Hopefully after all the hard work, this is a sweet deal that'll make money for you for long.

Of course, this rule is only for reference. But it does show that being an RE investor requires a lot of knowledge, and lots of hard work.

Hope this helps.
www.sunskitehomes.com