I have been asked this question many times before and thought as a Real Estate Property Manager I might as well formulate the answer as a blog post. Given that I am still fairly new in the industry, it may also be interesting that I formulate this post now and not later – with the risk of otherwise becoming a completely different picture of how it went as time passes.

This is how I did step by step

The Decision

I decided that I would buy a rental property. (may feel like a banal step to do. But all change actually starts with a decision)

Met the Bank

I told my banker (in the corporate department – NOT the private branch!) That I would invest in real estate. The banker then taught me how the bank calculated on real estate investments. In short, it can be said that the formula is: (rental income – 450 x square meters) / return requirement = value of the property. E.g. a property with rental income of SEK 1.5 million and an area of 2222 square meters provides standard operating costs of SEK 1 million (excluding interest and amortization), resulting in an operating net of SEK 0.5 million. A return requirement of 5% then gives a property value of SEK 10 million. The standard operating cost is just a template. As a new property owner, you should count on a higher operating cost for yourself. that you always make worse and more expensive decisions at the beginning of your real estate career. The required rate of return will differ depending on where the property is and what type of property it is. The same is true with the loan-to-value ratio, which can probably be between 30% – 80%. Where 80% of mortgages are multi-family houses in the perfect location and where you as a buyer are experienced and can show credibility to the bank.

Meet Successful Property Owners

I tried to meet others who had made the trip that I wanted to do. It was very good but quite demotivating. For 1 year, I stopped looking for new properties because I was scared off by all the bad aspects of being a property owner. But when everything I learned had matured, the hunt was resumed again. It is also important to show to the bank that you have the support of people with real estate knowledge in their surroundings when things go awry. Owning a property is running a business. You who run a business know that certain specific skills are required to run the specific company you run – the same goes for real estate. If you do not have the knowledge yourself, then you must show that you can easily obtain the knowledge if needed. One tip is to join the Property Owners and attend their education. They have lots of good education to go and I’ve been happy with everyone I’ve attended. At their training, you also get the chance to meet other property owners to exchange.

Separate the Market

I read all the prospectuses on all the properties I could find that was out for sale and went on as many shows as possible and talked to as many brokers as possible. One difficult aspect of this is that not all properties are put up in the open market, such as private homes are put up on Hemnet. In principle, there is only one page used for this type of object, which is objectvision.se. All other objects are conveyed through contacts or brokers who work in “the hidden”.

Send Prospectus to My Banker

The prospectuses that I thought were reasonable, I sent to my banker together with my calculation of the transaction. I realized then that there was quite a big difference between what I thought was a good deal and what the bank was a good deal. For each prospectus I sent, my accuracy was better. It also provided an opportunity for me to build a relationship with the bank and for the bank to get to know me how I thought. I also realized over time that I started looking at larger and larger properties. Partly because I managed to save more capital – but also because I realized that bigger properties would be better suited to me.


As I looked at more and more properties, I learned what it was that I was looking for. Here is my list that I worked out:

  • Multi-family house with at least 90% housing
  • Should be inside the ring road in Malmö (or “bike distance” as I also call it)
  • Stone house
  • Built before the 70s
  • Happy maintenance
  • Should cost at least SEK 10 million (because everything under that price range is far too many buyers pushing up prices and that there are no economies of scale in small properties)
  • I should be able to buy the property, never sell it, and still be satisfied

The above list is my list and works for me. The important thing is that you compile your own list that can work for you. I have put together my list according to what knowledge and values I have. You definitely have other knowledge and values, so your list will differ from mine.

real estate investment

The First Acquisition

About 4 years after I decided, it was time to make the first acquisition. When I was about to make my first acquisition, I took the help of a surveyor. My initial thought was that it was an unnecessary expense. But in retrospect, I am very pleased that I took help. The knowledge that the surveyor contributed was invaluable to me at that time and gave me insights and understanding that would have taken me many years to understand myself. The bank also became calmer when they received a signature from a surveyor on what future renovations needed to be done.

Real estate investment is sometimes seen as something magical and overwhelming. Many GetRichQuick gurus market hard real estate as the path to success and ultimately passive income. So as I want to do business, real estate fits very well into my vision. But it really isn’t something for everyone. Ownership means responsibility. If you are not prepared to take that type of responsibility, you are better off investing your money on the stock exchange. A property is a business.

Thus anyone can successfully invest set up a commercial real estate agent.