Magnetite was prepared by wet method and oil-based magnetic fluid also was prepared by its magnetite. Ahead of making magnetite, we investigated the variation of physical properties for changing $Fe^{3+}/Fe^{2+}$. Through the variation of the process mixing time, pH, magnetite content, we made magnetic fluid of magnetite. We examined the magnetic and frequency property by a toroidal mold. In result $Fe^{3+}/Fe^{2+}=1.2$, over the minute mixing time property of magnetite, Ms was 61.98 emu/g. Moreover, the B-H loop result indicated that the magnetic fluid followed paramagnetic behavior.