Starting out & Very overwhelmed

Starting Out
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Starting out & Very overwhelmed

Kristi Tietz
Member since 2021 · 23 posts · 9 votes

Hello all, my name is Kristi. I am a single mother looking to break into REI. I have wanted to do this for years, but always let fear get in the way. I am ready now. The problem is, is when I search for or make any inquiries about real estate investing, I get absolutely bombarded and overwhelmed with all these classes that people want you to take and pay for. There seems to be 1,000,001 different types of these. And most of them are very expensive. I believe wholeheartedly that I would benefit from a mentor. However, I am very leery of just paying someone or a company that I am not familiar with thousands of dollars to help me. I live in Michigan. In the metro Detroit area. I am mainly interested in flipping and maybe wholesaling. ANY advice would be helpful at this point! I need to know how to get started. Like I said I am ready! But, just don't want to start off wasting thousands of dollars to find help, only to be scammed. I'm sure this is happened to plenty of people out there. Like I said, any advice or anything anybody wants to tell me would be greatly appreciated! Thank you so much!!

Kristi 

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Sherry Patterson
Real Estate Broker · Fort Worth, TX · Member since 2015 · 221 posts · 125 votes
4y

@Kristi Tietz Hi Kristi, Congrats on the decision to get started. Obviously everyone's journey is their own and everyone learns differently. Let me start by saying that EDUCATION IS EXPENSIVE! You can chose to try and do it on your own without a mentor and will more than likely lose money your first couple of deals while you learn. Or you pay for a mentor and learn from them and their mistakes to be profitable quicker. Either way is expensive. You don't know what you don't know and therefore don't know to ask! My history: I found bigger pockets and spent months reading and learning. Then one day on one of the podcasts someone said the only way to do it is to just do it. So I went out the next day and found a house to buy and flip. At this time I could not find any REI groups around here. Everything I knew I had learned here on BP. I made a good and bad decision of buying a house that was built in 1890! Bad because it needed EVERYTHING! Good because it was a huge learning experience because it needed everything. I lost about $17k (I think because accounting is probably the main thing you need training on) on this first deal. Went and bought my second house, I only lost $12k on that one! BTW I had gone and met with a local mentor that wanted $20k and I thought he was crazy, I could do it on my own. In hind site that $20k could have not only saved me that $29k I lost (probably more) but could have made me a substantial profit on those houses plus gave me a much better education and saved me a ton of TIME! Can you really put a price tag on time? I started looking for people on BP in my area and asking if they wanted to get together. They did! First time we met there were 6 of us. We decided to meet monthly and it turned in to my own REI group which was great! I brought the people that were smarter and more experienced to me. We are starting our 8th year it is called IMPACT and pre covid I was doing 3 meetings a month in 3 cities with over 8k members. We started back in March live with one meeting and are building back up. I found sponsors to pay for the meetings and we provide free networking, dinner and always great education at each event. I don't allow guru sales but do have people come in an teach master classes that people can pay for. I said all of this to say, I WISH I WOULD HAVE FOUND A MENTOR FIRST! I have done it all and taught it all, wholesaling, flipping, BRRRR, multifamily, short term rentals, RV/MHP, to syndications. I strongly recommend what others have said and find a few local REI groups. Start attending and get to know them. Find someone that is either a mentor or willing to mentor. First and foremost make your goals: BHAG (big hairy audacious goal) and back out from there: 10y, 5y, 3y, 1y, monthly, weekly, daily goals to get you where you want to go and make sure you make choices to spend time on it EVERY DAY! Then look at your finances and talk to different types of lenders; hard money, conventional, private, and see what is realistic. (we investors can get very creative with financing) Maybe get a partner! With partners you can do more together with money and knowledge. Don't be greedy you had rather own a percentage of something than all of nothing. Hone in on what you want to do. Don't try to do multiple things in the beginning. If you are going to wholesale then do that, if you are going to flip then do that... become an expert in that and then move on to the next thing. I have so many ways to create income in "real estate" I have posted about them on the forums quite a bit. It doesn't have to be traditional, there are a lot of ways to make a lot more money with less risk as you build your business. (and a lot less competition) I would be more than happy to have a call with you if you are interested. I am in Fort Worth, TX so not trying to sell you anything. Just willing to help because I know how hard it was for me getting started and if I can help you over that hurdle just reach out! Happy Investing!

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  • Charles Schram
    Architect · Los Angeles, CA · Member since 2021 · 15 posts · 2 votes
    4y

    Hi Kristi - I'm from Detroit and am now living in Los Angeles just getting started in investing. I'm a licensed architect and have a grad cert. in RE Dev from UofM alongside my M. Arch degree. Let's connect and see how we can share resources and grow! I think I'll be able to lend you some coaching from my experience to date and resources in the 313 x 248...

    1Reply
  • Kristi Tietz
    OP
    Member since 2021 · 23 posts · 9 votes
    4y
    Originally posted by @Charles Schram:

    Hi Kristi - I'm from Detroit and am now living in Los Angeles just getting started in investing. I'm a licensed architect and have a grad cert. in RE Dev from UofM alongside my M. Arch degree. Let's connect and see how we can share resources and grow! I think I'll be able to lend you some coaching from my experience to date and resources in the 313 x 248...

     Wow, Chad!!! What an amazing offer!! One that I would love to take u up on! 👍🏼👍🏼
    Do I just hit the “connect” button to msg w you?

    0Reply
  • Jonathan R.
    Investor · Wichita, KS · Member since 2017 · 584 posts · 813 votes
    4y
    Originally posted by @Santiago Marquez:

    @Kristi Tietz Follow Ashley Hamilton BP guest podcast #331 she's from Detroit & is a Real Estate agent, lender & has an educational platform giving FREE knowledge to those who want to learn more about REI.

    I have read all the comments on the thread and I think this is the best one. I do a similar type of investing to Ashley Hamilton, though I built a large part of my portfolio prior to listening to her podcast. It helped solidify what I was doing. First, you don’t need a mentor. And I love him to death and have liked many of his comments throughout the years, but Shiloh is wrong too. You can go on your own and own more that one or two properties. I’m at 12 in 5 years, 11 are owned outright. I haven’t even started to leverage. I wanted to learn the game first. 2nd, I’d get away from the wholesaling and flipping idea. You want to own the properties, the other is a job. To me, my properties are all worth a million bucks, I worked hard on them and have no intention of selling them in my lifetime. 3rd if you can make a relationship with an affordable, reliable and quality contractor, you will succeed. My guy isn’t high on the reliability scale but he checks the other two boxes. I bought him a cheap house and did a contract for deed with him that I pay for while he is working for me; I can’t wait to give it to him, honestly I’m buying him more the richer he makes me, I’m his retirement plan. I gave him a truck and pay his phone bill. He’s not going anywhere. He’s my contractor and my handyman. 4th and finally, you’ll figure it out. After my first deal I absorbed bigger pockets, the podcasts and the forums, while I saved up for my next deal. How can I? Let your brain scour and figure out how to fund the next deal after you find it. I put myself to the test on deal #3. I put it under contract with no idea how I would buy it, I gave myself 30 days. That seller and I have partnered on several units afterward. Real estate is crazy and limitless. Make friends. It’s a relationship game. If you can pick up friends, you can get rich. Best of luck!

    PS. I started with a 7k tax return and 20k in a 401k, that’s it. I make below 80k in my W2 and am the sole breadwinner in my family. Anyone can do this, they just have to want it and take risks.

    2Reply
  • Terrell Garren
    Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    4y

    Really good advice from @Bruce Woodruff and @Jonathan R.   

    To the responders that tout their investment success and also demand a "coaching fee" - Something smells fishy.  If you are that successful with your investments, help someone for free.  If you need to make money, your time is better spent on investments (if you are good at it...)

    3Reply
  • Andrew Booth
    Specialist · Detroit, MI · Member since 2021 · 12 posts · 6 votes
    4y

    @Kristi Tietz Hello Krisit, I'm in the Metro Detroit area just getting started. I'm 21 so I have definitely been through the whole thought of mentorships & paid group. BUT... I found a group on FB that added so much knowledge and experience to my understanding of real estate it allowed to get a head start. I attended the meet ups and met all of the great investors that are apart of the group. I never thought meet up like that where around here. Feel free to send me a message and I'll help you with finding the right people to get started in our area.

    1Reply
  • Kristi Tietz
    OP
    Member since 2021 · 23 posts · 9 votes
    4y
    Originally posted by @Jonathan R.:
    Originally posted by @Santiago Marquez:

    @Kristi Tietz Follow Ashley Hamilton BP guest podcast #331 she's from Detroit & is a Real Estate agent, lender & has an educational platform giving FREE knowledge to those who want to learn more about REI.

    I have read all the comments on the thread and I think this is the best one. I do a similar type of investing to Ashley Hamilton, though I built a large part of my portfolio prior to listening to her podcast. It helped solidify what I was doing. First, you don’t need a mentor. And I love him to death and have liked many of his comments throughout the years, but Shiloh is wrong too. You can go on your own and own more that one or two properties. I’m at 12 in 5 years, 11 are owned outright. I haven’t even started to leverage. I wanted to learn the game first. 2nd, I’d get away from the wholesaling and flipping idea. You want to own the properties, the other is a job. To me, my properties are all worth a million bucks, I worked hard on them and have no intention of selling them in my lifetime. 3rd if you can make a relationship with an affordable, reliable and quality contractor, you will succeed. My guy isn’t high on the reliability scale but he checks the other two boxes. I bought him a cheap house and did a contract for deed with him that I pay for while he is working for me; I can’t wait to give it to him, honestly I’m buying him more the richer he makes me, I’m his retirement plan. I gave him a truck and pay his phone bill. He’s not going anywhere. He’s my contractor and my handyman. 4th and finally, you’ll figure it out. After my first deal I absorbed bigger pockets, the podcasts and the forums, while I saved up for my next deal. How can I? Let your brain scour and figure out how to fund the next deal after you find it. I put myself to the test on deal #3. I put it under contract with no idea how I would buy it, I gave myself 30 days. That seller and I have partnered on several units afterward. Real estate is crazy and limitless. Make friends. It’s a relationship game. If you can pick up friends, you can get rich. Best of luck!

    PS. I started with a 7k tax return and 20k in a 401k, that’s it. I make below 80k in my W2 and am the sole breadwinner in my family. Anyone can do this, they just have to want it and take risks.

     Thank you for sharing ur experience and advice with me! I really appreciate it!!🙂

    1Reply
  • Kristi Tietz
    OP
    Member since 2021 · 23 posts · 9 votes
    4y
    Originally posted by @Terrell Garren:

    Really good advice from @Bruce Woodruff and @Jonathan R.   

    To the responders that tout their investment success and also demand a "coaching fee" - Something smells fishy.  If you are that successful with your investments, help someone for free.  If you need to make money, your time is better spent on investments (if you are good at it...)

     AMEN Terrell!! 👍🏼👍🏼👍🏼👍🏼

    0Reply
  • Kristi Tietz
    OP
    Member since 2021 · 23 posts · 9 votes
    4y
    Originally posted by @Andrew Booth:

    @Kristi Tietz Hello Krisit, I'm in the Metro Detroit area just getting started. I'm 21 so I have definitely been through the whole thought of mentorships & paid group. BUT... I found a group on FB that added so much knowledge and experience to my understanding of real estate it allowed to get a head start. I attended the meet ups and met all of the great investors that are apart of the group. I never thought meet up like that where around here. Feel free to send me a message and I'll help you with finding the right people to get started in our area.

    Thank you so much, Andrew!! Have you done any deals yet? I will def be contacting you!!👍🏼👍🏼🙂🙂 

    0Reply
  • Stacey Brown
    Member since 2021 · 12 posts · 3 votes
    4y

    My suggestion as someone that started 3 months ago is continue to educate yourself, find a good real estate agent with investment background and a good lender who understands your goals.

    Also, pick something, just one thing and focus. Wholesaling and Flipping are two different approaches with some overlap. Also, I learned just because I'm ready financially, doesn't mean I have to rush to do a deal. I have a SF property that I plan to rent and see if I like being a landlord at that level, and looking for the right opportunity for Multi-Ć’amily. 

    Ready for me means I am not reliant or required to have cash flow in the first 12 months. Everyone's ready is different too. This takes the pressure off of rushing in and allows you to learn. Taking action for the sake of it isn't a plan either. 

    1Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    If you're local in Metro Detroit area, start attending these real estate investor meetings:

    www.REIAofOakland.com

    www.MREI.com

    Renegade Detroit Investors

    [email protected]248-209-6824
    Logical Property Management4.9458 Reviews
    WebsiteView Page
    0Reply
  • Geof Greeneisen
    Investor · Howell, MI · Member since 2011 · 202 posts · 52 votes
    4y

    Hi @Kristi Tietz,


    Congrats on making the decision to get started! Whenever I analyze a new market I try learning everything I can about the area. Narrow in on a specific area that you’re interested in, then benchmark values in the area. To start, stay within one city and watch the prices. You’ll actually be able to see the flips before and after, estimate improvement costs and after repair profits they made. I’m located in Livingston County but most familiar with Royal Oak, Ferndale and Hazel Park for flips and rentals. How we handle market due diligence is the same regardless of location.

    Feel free to connect, I’m happy to share our investment model with any new local investor, for what it’s worth.

    Best of luck!

    0Reply
  • Kristi Tietz
    OP
    Member since 2021 · 23 posts · 9 votes
    4y

    Hi there Geof, thank you so much for the response. Would’ve gotten back to you sooner, but I’ve been fighting Covid. I would really love to connect with you as soon as possible. I am mostly interested in flipping for right now. I am probably going to concentrate on the Sterling Heights area to begin with. Although, I am willing to go elsewhere. I just know Sterling Heights very well. Any information or advice you can share with me would be greatly appreciated. I am also very interested in getting information regarding local meet ups. I haven’t had much luck with that, thus far. I am really looking forward to connecting with you, plz contact me asap, k? Thank you so much, and Happy New Year!!

    Kristi 

    0Reply
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