Newbies: Is Fear Holding You Back? Read This!
Disclosure: I am not paid to write a blog, give opinions, or anything else, by Biggerpockets. I, like you, stumbled upon Biggerpockets through a simple search. However; because I am so impressed with the consistent content, and help available to everyone, by some of the most experienced investors around, I am more than happy to be involved with BP, and help where I can. My hope is to encourage others getting started in the business. Recently there’s been a lot of questions from newer investors, asking the same questions, so I thought I’d weigh in. Hope it helps a little.
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For All You Newbies!
As a newcomer wanting to get into the real estate investment business, you’ve read the books, blogs, and watched the tv shows. You’ve got the bug. You want to be a part of the craze. You aren’t going to miss out this go round.
You’re in luck. You’ve somehow come upon a goldmine of active real estate investors, that are willing to share their knowledge; and expertise with you via Biggerpockets. Of all the sites I’ve seen, this one is by far the most fascinating. The price of admission is FREE! Though the Pro Basic and Pro memberships are priced so low, you should really be a paid member – but it’s not required to participate. Best of all, Biggerpockets forums are basically in real time – you don’t post and wait days for answers, you get answers fast, from real people.
So now, armed with the knowledge you’ve gained so far, the question is, “What is it that is holding YOU back?” Make a list of what you bring to the table or have to work with (money, construction skills, equity in other property, are you an agent or contractor, lender, good credit, knowledge of the local market, or ?) Where are you weak? What can be done to overcome those areas of weakness? Do you need to hire people to do specific work? Are you going to work with an agent, contractor, or ? Do you need a partner? Or is it simply fear that holds you back? Be honest with yourself. Then, once you have yourself in the strongest position possible it's time!
That doesn't mean going out, finding any property, and making an offer just for the sake of taking action. Once you know what you can do as far as financing, located an agent that is well informed on the local market, and lined up the contractor or handyman/woman that will be working with you, a CPA if needed, start looking for properties that fit your criteria. Pay attention. Be sure you are comparing apples to apples. Be realistic about what all the costs involved will be.
Too often new investors rely too heavily on the opinions of others, what they read, saw, etc. NONE of that matters, because in the end, it is YOU that has to make the decision to move forward on buying or not.
Truthfully, that’s why many of you are here on BP.
You want someone else to make the decision for you, to tell you yes, it's a good deal go for it, or no, it's not, stay away. If there's some glaring flaw someone sees in the deal, we'll try to raise a red flag; and caution you. We can share our experiences, help direct you to where you might find help, etc. but, just because someone is on BP or teaches a class, calls themselves a mentor, or gets people to pay a fortune for a seminar, doesn't mean they're experts. Even if they are a licensed agent, broker, mortgage broker, contractor, private lender, etc.
Do your homework. It’s your money, and your future.
Though real estate investing isn’t as easy as we’re made to believe, it can be extremely profitable, and is open to people of all ages, educational backgrounds, and skills. It’s challenging; and exhilarating when you find that hidden gem, pick it up and turn it around, build on it, etc. It’s the thrill of the hunt, and the satisfaction of doing your own thing, while making a great living. But, at the end of the day it is a business, and the property has to make sense. Are YOU ready?