# 5 Essential Tips for First-Time Real Estate Investors

Real estate investing can be one of the most rewarding ways to build wealth, but starting out can feel overwhelming. The key is to focus on fundamentals, keep things simple, and learn by doing.

Here are five core tips that will help you avoid common mistakes and build confidence as a new investor.

## 1. Define Your Strategy

Every investor needs a game plan. Decide whether you want to flip houses, hold rentals for long-term cash flow, wholesale contracts to other investors, or use a strategy like BRRRR (Buy, Rehab, Rent, Refinance, Repeat).

Each approach has different risks, timelines, and capital requirements. Pick one that matches your goals and resources, and stay focused on it.

## 2. Build Your Buy Box

A Buy Box is your personal checklist for what deals you want to see. Define the location, price range, property type, condition, and expected return that make sense for you.

When you know exactly what you’re looking for, it’s easier to act quickly on good opportunities and avoid wasting time on the wrong ones.

## 3. Know the Numbers

Successful investors understand their math. Learn how to calculate After Repair Value (ARV), apply the 70% rule, and estimate repair costs accurately.

Understanding metrics like cash-on-cash return and cap rates will help you compare deals and avoid overpaying. Tools like PropPipeline’s ValueSync can make this process easier.

## 4. Build Relationships

Real estate is a relationship business. Connect with other investors, trustworthy agents, reliable contractors, and lenders who know how to work with investors.

Wholesalers are also a critical part of your network, since they often bring off-market opportunities directly to your inbox.

## 5. Start Small, Then Scale

Don’t aim for your dream deal right away. Instead, start with something manageable—maybe a light rehab or a small rental in a neighborhood you understand.

Every deal teaches lessons. As you gain experience, you can take on bigger projects and expand your portfolio with confidence.

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**Final Thought:** Every successful investor started where you are now—at the beginning. The key is to take action, keep learning, and improve with each deal. Platforms like PropPipeline connect you with vetted wholesalers and deals that match your Buy Box, so you can focus on making your first deal a successful one.


5 Essential Tips for First-Time Real Estate Investors

# Understanding the 70% Rule in Wholesaling

The 70% rule is one of the most widely used tools in real estate investing. It’s a simple formula that helps you quickly determine the maximum price you should pay for a property.

By using it correctly, you can protect your profits and avoid overpaying.

## The Formula

The formula is straightforward: **Maximum Offer = (ARV × 70%) − Repair Costs.**

ARV stands for After Repair Value—the price the property will sell for once it’s fully renovated. Subtracting repairs ensures you leave enough room for holding costs, financing, selling fees, and your profit.

## Why It Matters

That 30% discount isn’t just profit. It also covers hidden costs like taxes, utilities, closing fees, and unexpected surprises that almost always pop up during a project.

By sticking to the rule, you give yourself a margin of safety while still making the deal attractive.

## Example

Imagine a property with an ARV of $200,000 and repair costs of $30,000.

Using the formula, your maximum allowable offer would be $110,000.

If you can buy at that price or lower, you’re likely in a good position to profit.

## When to Adjust

The 70% rule is a guideline, not a law. In competitive markets, investors sometimes stretch to 75–80% to win deals.

In riskier situations—such as properties with heavy rehab needs or slower markets—you might tighten to 60–65% for more protection.

The key is to know your market and adjust accordingly.

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**Bottom Line:** The 70% rule is a quick way to filter potential deals, but it should never replace full due diligence. Always verify comps, get real repair bids, and understand your financing before you make an offer.

PropPipeline’s ValueSync tools can help automate this math so you can focus on finding the right deals.


Understanding the 70% Rule in Wholesaling

# How to Build a Real Estate Buy Box That Works

One of the biggest mistakes new investors make is chasing every deal they see. A Buy Box fixes that by giving you a clear set of criteria for the types of properties you want to buy.

Think of it as your personal compass in a sea of opportunities.

## What to Include

A solid Buy Box usually covers five things: location, price range, property type, property condition, and target returns.

For example, you might decide you only want single-family homes in Dallas suburbs, priced between $150k and $300k, built after 1980, needing less than $40k in repairs, with at least a 12% cash-on-cash return.

## Why It Matters

When you know exactly what you’re looking for, decision-making becomes faster and easier.

You can filter out bad deals, move quicker on good ones, and communicate clearly with wholesalers so they bring you the right properties.

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**Pro Tip:** Once you set your Buy Box inside PropPipeline, the platform automatically matches you with deals that fit your criteria—saving you hours of scrolling and second-guessing.


How to Build a Real Estate Buy Box That Works

# What to Ask a Wholesaler Before Buying Their Deal

Working with wholesalers is one of the fastest ways to find off-market properties. But not all deals are equal.

Asking the right questions helps you avoid surprises and ensures you’re working with professionals who can actually close.

## Key Questions

Before you commit, ask: Is the contract assignable? What comps support the ARV? How were repair costs estimated—by a contractor or just a guess? Are there any liens or title issues? What’s the earnest money requirement? Has this deal been shopped around by multiple wholesalers?

## Why It Matters

These questions build trust and weed out bad opportunities.

The best wholesalers won’t mind answering—they know educated buyers close faster and with fewer headaches.

If a wholesaler avoids or dodges these questions, that’s a red flag.

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**Closing Thought:** Good wholesalers value serious buyers who do their homework. PropPipeline makes it easy to connect with wholesalers directly, review their deals, and ask these questions up front before committing your money.


PropPipeline Blog

5 Essential Tips for First-Time Real Estate Investors

Understanding the 70% Rule in Wholesaling

How to Build a Real Estate Buy Box That Works

What to Ask a Wholesaler Before Buying Their Deal