Make a plan. Get a journal and start with asking yourself these questions;

In order to route the best path, you need to know where you are at, what you’re willing to do, and where you intend to go to get there.

Talk to several Realtors, find a great one and stick to them.

There are good, bad and indifferent in EVERY industry. Even at your current job there may be people that you are amazed remember to breath without being told. You need a Realtor who has a great network you can plug into. They will want to screen you first and make sure you’re serious about the industry with a consultation. This Realtor has profound benefits and you’re going to need them. Their business is kind of like a good-old-boy club. They have a long list of properties and clients they’ve built up over years and have knowledge, connections and deals that are a world all their own. They have their own leases, move in conditions reports, CPAs, Property Managers and a long list of reliable contractors when you’re in a pinch. They should be actively investing, teaching and active in their local boards and organizations which provide them connections. Once you find this person, stick to them until you find another Realtor with a better network.

If you have a partner, spouse or another decision maker in the process you will want to make sure they are part of the consultation when you interview a potential Realtor. Since we’re talking about your financial future, don’t settle for anyone. Many people make the mistake of using an old family friend or someone they feel obligated to use because of a mutual or past relationship. You don’t owe anything to anyone except yourself. You deserve the best.

Get a local lender who understands income properties.

The fastest and most direct route is to owner occupy your first investment property. Government insured loans such as VA and FHA can be used to purchase up to a four-unit building and require very little for a down payment as long as you are going to live in one of the units for at least one year. The amount available for these loans are rather high for the Alaska market and your personal credit score can really dictate the terms of the loan. Get pre-qualified months before you intend to purchase. You need time and direction to adjust your credit and finances to get the best loan.

Your lender and Realtor should have a VERY close relationship. This is because they need to work together to structure a contract to purchase. Closing dates, pre-paids, credits, reserves, pro-rations, warranties and more all go into a contract and dictate the difference between a good buy and a phenomenal deal.

There is a BIG difference between banks and mortgage brokers. You may find that a Broker has more options than a bank and you may need to shop around to find the best deal.

A lender who understands income property will also understand how to “stack” loans. This is very important part of acquiring multiple properties. Loans are like tools in a tool box that should be used in a proper sequence on different kinds of real estate investment. Use the wrong kind of loan early on can make if very difficult for you to purchase another for years.

Understand the numbers.

You will need your Realtor and lender for this one again, and it’s important that they know how to run numbers better than anyone else around. Below is a spread sheet I made for our clients. You should be getting something similar when you have inquired about a property. Remember; CASH FLOW SOLVES ALL PROBLEMS. Think about that. Name a problem that enough cash can’t solve. I can’t think of one.

GO TO REX (The Real Estate Exchange)

What is REX? REX (Real Estate Exchange) is a club whose purpose is to create a safe haven for real estate investors to network with like-minded individuals for the purposes of education, training and motivation. The REX philosophy is that we should not depend on others to secure our future. Instead, we depend on acquiring and sharing knowledge to create wealth through real estate investing. Our motto is “Don’t get sold, get educated”.

No new investor should try to go at it alone. REX is where new or even seasoned investors can meet other successful investors who live, breath and work in Alaska and find out what has worked and not worked with people who are doing it locally. Rex is a great way to start building your own connections and meet people passionate about real estate opportunities.

REX is over a thousand members strong! The meetings are FREE and you get to network with real investors making real money doing real deals in real estate in Alaska. Go to Alaskarex.com, or Call Kevin Cross, President of REX at 907-529-2289 for more information.