BiggerPockets

How To Learn About Real Estate Investing

How to Learn About Real Estate Investing

In our area, many of the homes have dropped in value down to their 1997 levels. Because of this huge plunge, the interest of many would-be real estate investors is beginning to be sparked. A lot of folks are seeing this depressed market as an incredible buying opportunity.

Last night, at a friend's Christmas party, I was surrounded by 10 people who had questions about buying investment real estate. Specifically, they wanted to know how to buy foreclosure and bank-owned properties.

First, is this a good time to buy real estate? It's ALWAYS a good time to buy real estate if you: 1) buy a good home in a good neighborhood; 2) get a great price with great terms; and 3) have a clear exit strategy.

For example, some time back, Kim and I bought a property in The Planters. The Planters is a wonderful subdivision in Cartersville, Georgia. Average property values range from $180,000 up to $250,000. Our purchase price was $14,298 (This is NOT a typo!) for a house that only needed a shave and a haircut (i.e. paint and carpet).

In any market, this is a great deal. And here's the thing: With all the real estate chaos out there, these diamond deals are there to be had - IF YOU ARE MEETING WITH SELLERS ON A REGULAR BASIS!

What are the best ways to learn about real estate investing? NEWSFLASH: It's NOT from one of those TV infomercials. The goal of those shows is to get you to part with your hard-earned money!

The best source of real-world real estate investing knowledge will come from the been-there-and-done-that investors working in your area. How do you find these folks? Their phone numbers are in the "We Buy Houses" ads in your local paper.

An even better place to meet these investors is at your local REIA (Real Estate Investor's Association). These associations are everywhere. Kim and I are members of North Metro REIA (NorthMetroREIA.com) and Georgia REIA (GaREIA.org).

The key is to spend time with the veteran investors in your area. They can tell you which creative deal-structuring techniques work and don't work, who the best teachers are, what to be mindful of, pitfalls to avoid, etc.

Think of it this way: If you wanted to know how to repair a car, where's the best place to learn? From a book, an infomercial or some old guy with skinned knuckles and an oil stained shirt who's been working on cars his entire life?

If there's not a REIA in your area, start one. It can be something really simple - get together with several other investors from your area on a regular basis. It doesn't matter what you know or don't know. What matters is that you spend time with other like-minded people!

Comments

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  Ron Owens — about 2 years ago

  Great suggestions, Bill. I certainly agree but would like to add another suggestion and a caution. There are several Meetup groups (www.meetup.com) which discuss real estate investing and most are free. A caution I would add is for new investors to beware of individuals trying to sell their services as a coach or "mentor." Many of these are just looking for your money or to use your credit. Make sure a coach is certified by the American Association of Real Estate Coaches (AAREC.org) and abide by its code of ethics.

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  Bill Cook — about 2 years ago

  Ron, great advice. You know, over the years I've seen lots of "gurus" adverting their "mentoring" services, but have never met one who was worth his salt. The great teachers I know - like Jack Miller (God rest his soul), Pete Fortunato, Dyches Boddiford and John Schaub don't mentor because they are too busy investing. No matter, they are the best real estate investing teachers on the planet!