Rental Property Purchase: Step by Step

Support and Fees Options

Diamond Level  – Personal guidance by Dani Beit-Or with full support. 

If you been wanting to invest for a while and unable to pull the trigger – you could benefit from a hands holding guidance that will make sure you will end up investing successfully. During this guidance you will have an in-person guiding with Dani Beit-Or that will share with you his experience and trusted network, help you analyze and choose the right investment properties, and support you during the purchase process until you close on your property.

Fees

Beginner Investor – with no previous US rental ownership experience

First property purchase:

• Pay at closing: $3,350
• Pre-pay: $2,150

Any additional property purchase: $695 due at closing

Experienced  Investor – has previous US rental ownership experience

First property purchase:

• Pay at closing: $2,950
• Pre-pay: $1,850

Any additional property purchase: $695 due at closing

Golden Level – Automated guidance with videos and files.

If you need guidance before and while purchasing – get this step by step online educational info to help you invest, and stay on the right track, and avoid costly mistakes. During the process you can connect with our trusted local Realtors to view relevant investment properties.

Fees

$950 due before receiving access to automated materials

Silver Level – Express route: No Mentorship – only access to local teams.

Benefit from a vetted network of property managers and Realtors SDI have qualified to manage our properties. Save you great deal of time on searching and sorting for the right professionals.

Fees

$0

The Buying Steps

1. Introduction
   https://youtu.be/uhPFiVhargw
2. Sign docs
3. Initiation Session – video
   1. Taking title
   2. Pre-qualification – working with the lender
   3. Setting up your baseline criteria
      

      Item [suggested]	My Criteria (Min.)
      Schools [B-]
      Square Feet [1200]
      Bedrooms [3]
      Bathrooms [2]
      Year Built [1980]
      Rent/Price (%) [0.75%]
      Average Cash Flow (at year 5) [100]
      Average ROI (at year 5) [15%]

   4. Working with an agent
   5. Evaluating properties
      https://youtu.be/M-ev386vuyA

      Num. of Bedroom

      Num. of Bathroom

      Square Feet

      Year built

      Is there a pool (recommended NOT to have one!)

      Property is NOT in a flood zone

      Fenced backyard (nice to have but NOT a must)

      Near busy street or highway

      Near urban nuisance? (High voltage power lines close, water treatment facility, etc.)

      Rent COMPs

      Days on market

      Rent make-ready estimate

      Schools rating

      SDI Excel Analysis (SimplyDoIt.net/excel)

   6. Submitting an offer
   7. Inspection
   8.  Protectiveness
   9. Property manager’s role
4. Market Selection – contact form
5. Buying Checklist/s – PDF
   Download the “SDI Rental Property Purchase Process Checklist“
6. Mortgage pre-qualification
   

   Option 1: Mortgage

   1. Obtain a pre-qualification letter from a lender.
      1. If you need a recommended lender – let us know
   • Tip1: when working with lenders answer truthfully but don’t volunteer info not asked.
   • Tip 2: Married couples and partners – we suggest buying each rental and getting a mortgage under one person’s name and not both. E.x. only the wife’s name.

   Option 2: Cash

   • When buying cash you will need to prepare proof of funds.
   • Proof of funds can be a screenshot of your bank account.
   • Make sure the name in the prof of funds matches the name in the offer document.

   Tip 1: Try to only show the amount needed for the purchase and not more

   Tip 2: consider opening a secondary bank account to use as the source for your proof of funds.

   Tip 3: If you main bank account is in other language than English:
   – See if you bank offers a English option of your bank account.
   – If your bank doesn’t offer it free-translate the proof of funds so seller can understand what it says. No need for a professional translation services.

   Option 3: Delayed financing

   This option is relevant if you have cash to buy BUT still want to use financing. It means to break the purchase int two steps: first-cash offer; second-bring in the mortgage right after the cash-purchase is completed.

   To accomplish this method you would need to discuss the process closely with the lender.

7. Properties review & evaluation
8. Offer
9. Submission
   https://youtu.be/l011Uo4BsUA

   Request seller’s disclosure statement

   Number of Due-Diligence Days (7-14 days)

   Financing Contingency

   Appraisal Contingency

   Home warranty

10. Offer negotiation
11. Offer Acceptance
    https://youtu.be/w_hf34N01Qk

    Send signed contract to lender

    Send earnest money

    Send option fee (TX)

    Physical Inspections – Tier 1 – Agent

    Physical Inspections – Tier 2 – Inspector

12. Get under contract
13. Property due diligence
    

    Video by agent (FaceTime)

    Num. of rentals in the area

    Inspection fee ($450 +/-)

    Sewer inspections (optional)

    Insurance quote (SimplyDoIt.net/resources)

    Demographic (Google: movoto.com demographics + zip)

14. Almost closing
    https://youtu.be/k68bp5nUs5s

    Removal of your bank’s wire amount cap

    Property insurance ready

    Property day before closing walkthrough

15. Close
16. Prep for leasing
17. Market and Lease
    https://youtu.be/pFb4eChSEEA

    Num. of Showings and Traffic Report

    Posting on Craigslist and Zillow (ask PM or agent)

    Bi-weekly progress report w/ PM (showings, asking, etc.)

    Future Leasing: push to show your house to the next tenant when the current one is still in.

18. Post Purchase
    https://youtu.be/xgV99WMsajA

    Watch Simply Do It’s Owner Crash Course

    Send Simply Do It a feedback or testimonial

    What do you think is missing to this list – let us know?

Lesson 1 Lesson includes:
Introduction video [2:19 min]
Attachments: none

Lesson 2

Lesson includes:
Introduction video [11:51 min]

Attachments: none

—–Open Items—-

1. Remove slider (map & search) from top of course page
2. Create course video synopsis – a “taste” of the course
3. Money back guarantee  – NONE – add to page
4. Add items from WF emails to lessons
5. Mention but don’t add the Owner Crash Course
6. Make sure they sign a release of liability.