So what are some tips every beginner should know before starting to invest in real estate? What's going on team, it's ricky with tech, but solutions? I got nick paladino here and, as some of you guys might know, uh we've been proactively flipping properties here in the arizona market. Right now we have a total uh together a total of six projects. So we have three together of house flips he's renovating uh. His current property - that's the fourth one.

The fifth one is one of my rentals. We're renovating as well again he's overseeing all of that, and then i have another property in scottsdale that i guess still hasn't sold. But we're not talking about that. I wanted to ask nick some questions on the spot on things i think every beginner real estate investor should know so yeah.

If you guys learned something new in this video, please make sure to drop a thumbs up, and if you have any specific questions, you want us to answer for our next real estate. Video comment, those down below so the first question that i wanted to ask: you is: what is one of the biggest mistakes you see home buyers making right now? That's a really good question. By the way. None of these questions he's asking.

I actually have no idea. Um, the biggest mistake i see is people looking for the perfect deal like waiting and waiting waiting on the sidelines when there's never going to be, or it's never at least going to feel like there's going to be a perfect opportunity to invest. So i always tell my clients is, if you have the money, if you have the down payment, if you have the um pre-qualification in order to purchase a property, get into it like trying to wait for the market to drop or trying to wait for the perfect Dip or even sometimes the perfect property is counterproductive and just makes things even more difficult. I had clients looking in 2000 early 2020 or mid mid to early 2020.

That said, the market was going to drop in 2021.. Now, look at the market. They lost about 33. Of their investment in a sense, if they're getting 33 appreciation on a property, they never bought.

That's the way. I look at it. So if you guys are eligible and you can purchase a property, i would say: don't sit on the sidelines. If you have a trusty agent, if you have a good lender and you have a good team that you're working with then just go for it, i do have to say uh kind of just pigging backing uh piggybacking off of that idea.

Um i really like when he said that you never know that you have a good deal until you know. Sometime after and i always find myself talking about that property that i bought in 2015, my first property uh - i bought for 170 000 and is now worth over 400 000.. It wasn't until years later that i was like oh wow. That was, that was a really smart choice for me to make at the end of the day, i can't predict the future right.

So why pretend to yeah? One of the things that you need to understand is, although it's viewed as a very challenging thing of potentially buying a house learning what it is that it takes to actually buy property, meaning that getting pre-qualified with your income, with your credit score with your overall money. That you need as a down payment if you're actually interested in buying your first property. I would just say: take the lead, work start working with the lender and see what it is that you need to work towards. Maybe you might not be ready now, but at least you have a blueprint on what it is that you need to work on to eventually get to that point.

Yeah i mean same thing in 2019, i was like oh my gosh, like am i making a good investment and look even two years like two years ago, i'm like wow, like i'm, so glad that was probably one of the best investments i've ever made in my Life - and i bet you if you go - ask any real estate investor that has purchased properties over five years ago. It has been a good decision and they do not regret it so in long term, real estate, i i always say, is going to appreciate all right and going off of kind of that question of what i said or the answer that i said of you know What is it that you need to qualify? Does someone need a lot of money saved to buy the first house? The reason i'm saying this is because i'm sure a lot of you might have the income history as in the two-year work. History might have the credit score, but maybe you don't have all the money saved yeah so does a first-time homebuyer or a home. Buyer always need 10 5 20 to put down.

No, so that's a great question, i'm glad you asked, because this is probably one of the most common questions that i get asked personally, i honestly have noticed from a real estate agent perspective. A lot of the biggest holdups in getting pre-qualified is actually work. History, um and, like you, don't need a large down payment. One of the biggest things is going to be having a steady and at least like a one to two year, work history, ideally for most lenders.

If you have that, you don't need a whole lot of a down payment uh. I know a lot of my clients right now are one of them's three percent down. One of them is five percent down. One of them has gift documentation as well.

If you're doing an fha loan, which is very popular, i think you did fha, you can get gift documentation as well to assist with that down payment. So i actually have two fha clients one's closing tomorrow, the other one's closing next week. They both got gift documentation to help them with the down payment, so you don't need a whole lot of money. If you have that work history, that is one of the most important things you can have a decent credit score as well, but you don't need a whole lot of a down payment and that's what scares a lot of people away.

It's a little bit different if you're investing, especially if you're investing out of state you do need a little bit of a higher down payment, but there's a whole other video that i can talk about on that topic. But if you're just getting a first time home. Buyer that you're gon na live in it owner-occupied you don't need a whole lot of money whatsoever. All right.

I like that and the last question. This is kind of like an in-between. How do you? Because not only are you a real estate agent but you're? Also, a real estate investor but you're also a property owner yeah. How is it that you differentiate a property worth owning and renting out versus flipping? What is the difference in criteria? That's a really good question um! I actually had no one really ever asked me that um we're actually until today we have a property that got sent to us last week.

I went and walked it uh. Two days ago, it's in florence arizona - and i was just like thinking about the numbers on that i'm like wow. This would make a great rental property. One of the things that i look for in rental properties, as opposed to flipping, is first of all.

Are we getting this with enough margin where oh, like we're gon na make 80k on this, as opposed to oh we're only going to make 10k on it? That's going to have a big impact, because if we're only going to make 10k, it just makes more sense to potentially hold that property. But if we're going to make like 80k or 90k like we did on the goodyear house, then it just makes more sense to kind of collect that capital. But the biggest thing i look for in rentals is the location, the square footage of it rental, comps and then just the appreciation of that area. If it's an area that i don't personally like or i don't i'm not too familiar with, i would always just opt in to flip the house, which is why we did the one in goodyear arizona it's about an hour from us.

I just didn't know the area too well and i found like i just thought it was just going to be a better opportunity to flip it. Now if something comes up in the east valley or somewhere, where i know it's an appreciating area, i will 100 try. My best to buy and hold that property um and then also the rental comps. You want to make sure it's like this gon na be a good cash flowing property and what i mean by square footage is there's a sweet spot to, like the i think, the best roi, where, if you have too big of a house you're going to be Spending so much money on just buying it that the cash flow is not going to be there, but if you hit a sweet spot for arizona for me, it's like anywhere between 12 to 1800 square feet.

I find those to be the best roi on cash flowing rental properties, so if that fits that criteria of square footage, location i'll try my best to hold it at the end of the day. For me, it's all about these flips are just about building capital. So i can just buy more properties to buy and hold and rent out and cash flow, passive income. So that's a good question.

I thought it covered it yeah. I thought it would have been interesting, as you know, there's a couple of you that might be watching this video that might be ready to flip their first house or buy their first house uh or rent their first house out right uh. So i thought that would be interesting to understand the reason why someone does something, and nick does all three where he sees you know, represents agents uh or represents individuals as an agent uh that are looking into buying the first house, he has a series of different Rentals, but as well as he flips property, so i think it's very important to always have a proper intent behind an investment decision. So again, like we said, if you have any questions that you would like answered in future videos, all you have to do is comment them down below.

But if you have questions because you're interested in actually getting started in real estate right now, whether that's you know buying your first property, investing in your first property and or looking for a rental, i'm gon na put his instagram down below and again don't just comment. But dm him he responds to all of his direct messages and you guys can message me if he doesn't and i'll hold them accountable, but dm. If you guys have any questions about getting started in real estate and actually getting started being connected with lenders, you know being connected with an agent. Even if it's not him, you know what about different areas in arizona when i tell you that this guy is on the mls and on zillow and those type of websites as much as the average person is on social media, i'm not lying right.

So again, his link is going to be down below make sure you message him, and i hope that this video got you one step closer to your overall goal and if it did make sure you smash that, like button, like always, let's make sure that we end The year on a green now, take it easy.