Building
Hello all, not sure if this will help anyone, but if you are getting started please read. If you are an expert please include your thoughts!
I am newer to BiggerPockets and I have already benefited so much from the networking aspect of this community!
Let me tell you, I meet a lot of people who fill the seats at sheriff sales, newer investors, and people who say, "I want to buy my first house, I just don't know how to get started!"
What is the answer? Action.............that is how you get started. You may be reading this and think that's bullsh or that is just way too simple. Well, just stay with me. What does action mean for you? Action, for someone who knows absolutely nothing about real estate is education (Podcasts, REIA meetings, BiggerPockets forums, articles, local market experience, contacts in the industry) those who know a little need to know more and NETWORK. If you don't have time to invest than you need money/credit, if you don't have credit/money than you need time! It's as simple as that.
Let me clarify and break that down.....EVERY INVESTOR who is actually doing deals, let me say that again, EVERY SINGLE investor that is doing deals, not, talking about deals, but actually doing deals, needs MORE RELIABLE CONTRACTORS and LOCAL MARKET EXPERTISE. I am currently rehabbing 5 houses and own 42 doors. Which isn't much, and I'm not bragging, I'm proving a point. I'm rehabbing and flipping and buying and holding in Cinci, Tampa, Detroit, Miami and Dayton. There is no shortage for great returns....there is an unbelievable shortage for people who do what they say, and say what they do!
If I had someone who said, "hey Jon, I don't have money to invest but I want to be apart of your team, this is what I know about the market, this is my expertise, and this is how I can help you." That person has my full attention and I would ask, "how do you see this being mutually beneficial?"
I began following the"creative investing" forum and it is unreal. ..literally, unreal how many people ask about private money, i.e. hard money (for those of you who don't know hard money is financing from a private party other than a financial institution).
The answer to so many questions is the subject line of this forum post......"if others knew, you know what you know, than money would fall from the sky!" You can't take shortcuts in life or in real estate. You may think that you have an awesome deal that is a sure win but there may be something that you are missing. Start with educating yourself and working with someone who has knowledge and more importantly CURRENT deals they are working so that you can gain EXPERIENCE.
Let me tell you I started by working for sweat equity by working for an investor who owns more than 12,000...that's TWELVE THOUSAND doors. How did I benefit someone like that....I worked hard, I worked smart and I worked cheap, I was reliable and honest and I was flexible on my terms. It took 3 years. Not 3 days or e months but THREE LONG Y E A R S of sacrifice and pinching pennies to save and get experience to learn the in's and out's of so many different deals. Was it worth the late nights and early mornings, 16-18 hour days, stress, lack of social life....to me, hell yes it was worth it. I took a month and a half off last year for my honeymoon and traveled the world. And I paid cash for a beautiful engagement ring and for all of our vacation.
I needed to get in the fox holes, get dirty and learn this business and I loved it. It was SO HARD at times and SO UNBELIEVABLY UNCOMFORTABLE. But I was willing to do it because my WHY was bigger than all the difficulties.
That being said, if you're starting out and trying to figure out what to do or if you have time and no money/credit ....... don't think that Real Estate is a, get rich quick business. If you have money, don't think real estate is a get rich quick business. It takes work, planning and education.
Identify your goals. With money/credit partner with someone who has so many deals they can't fund them all and ask for the education along with the deal. Negotiation isn't just price, it's also terms. Learn from someone who knows what they are doing. I had a meeting with someone today and he asked me, how can I help you in real estate? That was the perfect question! I told him what I needed desperately and he made it happen. If you have time, than do what Clay did in my previous example. Ask someone how you can help them and you will gain the knowledge, wisdom and experience you need to get started.
Hope that helps and wasn't a waste of 10 minutes of my life.
Best Regards,
JK