Just popping in to make my first post and say that I'm happy that I just discovered this forum. The reason I'm here is to learn as much as possible as I'm tired of working so hard and only relying on my day job to just get by. Recently, I just had my daughter in July and my wife had to shut down her cleaning business as we couldn't acquire employees to work. I work 55-60 hours a week and am looking for other ways to build a financially healthy life.
I know I've got a lot of research to do here and podcasts to look into but, I'm hungry for knowledge and want to learn. My interest was created by reading "Rich Dad, Poor Dad" which opened my eyes to the truth about money and want to take action on the value I'm learning from it. I do have a quick question though, which I'm sure I would find in my research reading forums here. But, would it be a good idea to pursue a Real Estate license to learn the ins and outs of the market? Or could I do that by just researching?
I guess a little clarity of my financial situation would help as well. My debt to income ratio is horrendous and I've been doing my best to slice my budget down to live below my means to cut out and work on this debt. So, I would be trying to make money with little to none to begin with. My goal is to get as educated as possible and start making moves that will help increase my revenue stream and from some of the research I've done wholesaling seems to be a good way to get started. Any advice? Thank you in advance for any responses and I look forward to spending the whole day soaking in the Bigger Pockets forums and space!
Congratulations on the birth of your daughter and your interest in being a dad who can take care of your family financially. I would probably recommend that you consider this season of your life as a season of learning and preparation. Connect with some property managers, contractors, and landlords who can help you gain hands-on experience with a few hard skills while you are also reading, listening and developing your understanding of the breadth of the Bigger-Pockets- related fields. Is it possible the the contacts that you and your wife have had in the cleaning business could be maintained as they are a related industry that can support landlords and homeowners in the future? I would recommend that you continue to work hard to save money for a down payment, consider moving to another house and keeping your current house as a rental. That's how a lot of us started as landlords (myself included 30 years ago). Keep on keeping on!
Hi @Scott O'Neil, welcome to the forums! What a great first post. Yes, live within your means... pay off as much debt as possible.... soak in as much as you can here at BP and other forums - especially, invest in 5-10 of the best books that are always recommended here. Join some local REI meet-up groups. Even if that is all you did for your first year or two - it will put you MILES ahead of where you are today.
As far as the specifics of strategies - that will come in time. Personally I would avoid wholesaling and auctions to begin with - and perhaps start with the tried-and-true househack? A real estate license allows me a broad range of fun and options - but certainly not necessary for REI, and many would argue that it may be more of a hassle. Just get to know some great realtors - they'll be happy to jump in and help you search.... for free!
Thanks for your responses! Greatly appreciated. @John McCombs Awesome advice, that's exactly what I'm thinking, the market is hot for sellers right now which is why I think it's a great time to learn and prepare, I don't know if the former business will help but possibly. I'm definitely going to look into getting a house and then using it as a future rental.
@Tim Johnson with your advice I found a local REI meet up in my area which I plan attending. I know this is a process and I'm willing to sacrifice the time and work into it. In regards to becoming a real estate agent on the side is that it would help educate and bring in another income that will help me make transactions that are profitable so that I can use it for investing. I hope that makes sense, I sort of want to do both, have a passive income and also make money off of transactions.
As far as books go, I read "Rich Dad, Poor Dad" and I am reading "Think and Grow Rich". My next book is the "Millionaire Next Door". I'm also listening to the webinar and downloaded the E-Book from Brandon Turner on Investing in "Real Estate With Little to No Money".
@Scott O'Neil congratulations on the kiddo!
Sorry about those long hours…..
As a long time Real Estate Pro who had our own agency, and an experienced RE Investor, I first want to say that those are two very different jobs and people groups.
I would not recommend getting your license for the purpose of learning about Real Estate investing - or even to keep your finger in the pulse of the market.
1. Great job optimizing your budget - that’s a great idea, but as you learned from RDPD, it’s not the solution to what you’re looking for. I will say, though, that getting a handle on your “bad” debt is incredibly freeing.
2. I HIGHLY recommend playing CASHFLOW with investor friends (better yet if they are the mentor-types). This game really does work to help you practice mid set, vocabulary, and simplified financial statement.
3. Wholesaling does seem to get people cash. It’s not something I love, but I even if you decide to go a different route, learning how to wholesale is an amazing - if not the best - way to learn to find deals. You may just want to acquire them yourself :)
Right now, learning and whiddling down your debt is a job, especially when balancing a job and family.
If you set goals around that for a set time (like “2 months”) then make new goals for the next phase - and play CASHFLOW - that could really move you forward.
The only other thing, and it may not be feasible, but if your 9-5 job was in a position where you are also leaning about investing (like joining an acquisition team, for a syndication company, etc), that would be huge ….
@Tiffany Youngren @Scott O'Neil *learning about investing, haha