I want a solid foundation in place to begin my investing journey.
Member since 2021 · 10 posts · 4 votes
I am new to BiggerPockets and new to real estate investing. I'm 25 I'm $50k in debt, but I want to become debt-free, replace my income from work, move out of my parents' house, create a better quality of life, and build wealth through small multi-family properties. What do I need to do to get started? And who do I need to be apart of my team? I live in Georgia
@Keshaun Harden Based on the description of your current situation, wholesaling seems like a logical place for you to start.
Send me a DM and I’ll send a Wholesaling pro forma that I recently built for my son.
It will give you a good sense of how a deal works for wholesaling and in general.
I wish you the best of luck!
@Keshaun Harden Based on the description of your current situation, wholesaling seems like a logical place for you to start.
Send me a DM and I’ll send a Wholesaling pro forma that I recently built for my son.
It will give you a good sense of how a deal works for wholesaling and in general.
I wish you the best of luck!
Hi @Keshaun Harden! First off, good on you for identifying where you want to go! I would definitely recommend reading both Rich Dad Poor Dad and then Set for Life by @Scott Trench. Set for Life is extremely practical and gives concrete advice on how to achieve your goals - whereas Rich Dad Poor Dad is great for the big picture ideas, but doesn't have much in the way of pragmatic, actionable steps. Best of luck to you and hope this helps!
I am new to BiggerPockets and new to real estate investing. I'm 25 I'm $50k in debt, but I want to become debt-free, replace my income from work, move out of my parents' house, create a better quality of life, and build wealth through small multi-family properties. What do I need to do to get started? And who do I need to be apart of my team? I live in Georgia
What kind of debt?
Wish I would have started when I was in my 20's! Be relentless in paying that debt down, do side work that gets you experience in real estate to earn extra money and grow your knowledge. Start analyzing deals and building your network now.
Good luck!
Congratulations, you are in the right place. There is so much free information here-take advantage of it. Stalk the forum, analyze deals, network, read and learn about different strategies, pay down that debt, start building your "team" and play with the calculators. You are ahead of most people just buy knowing you want more. If you see someone post about a deal that they did, ask questions. Most people love to talk about their successes and will be happy to have conversations with you. Good luck and feel free to reach out!
@Keshaun Harden going off of other BP members, pay down your debt. Lenders will account for your DTI when approving you for a loan, so try and get the debt off your name as soon as possible. Since you are starting, I would highly recommend that your first investment/purchase is a house hack deal. Begin by educating yourself on the strategy of house hacking by reading and listening to house hack-specific books and podcasts respectively. In the meantime, continue to save capital and build credit to further enhance your borrowing capability stature. Your team is going to consist mainly of your real estate agent and lender. Network with agents who have either house hacked before or regularly help house hack clients source deals. As someone else had mentioned, "Set for Life" is a great read and provides practical steps for someone in a position like yourself. Which market of Georgia are you in? Hope this helps!
I'll echo the thoughts of @Michael Dumler and @Jacob Stevenson on this one - pay down that debt. I found myself in a similar position around your age. I had about 80k in debt though. Work your a$$ off, live off of nothing, and be patient. If you are in your 20s and have not started collecting kids, dogs, or commitments, this is the time to delay gratification and throw all that you have into something. The old saying about entrepreneurs is that they will work 80 hours a week so that later they don't have to work 40. You're on the front end of that.
Though it is redundant from the advice above, what I wish that I would have done rather than buying a standard single family home as my first house was to do some sort of a house hack. Once you get your DTI where in needs to be, buy a house, get roommates to pay you rent or do something with more than 1 unit (basement apartment may be a good low cost starting point) and live in the worst unit while renting out the rest.
Find work or side hustles that get you around accomplished real estate professionals/investors as well. You'll see people posting on here all the time asking about mentorship or investment partners. The best way to find that is to get noticed in the midst of you keeping your head down and working hard. Ask for help and advice from those folks you come in contact with, but you can't steer a parked car. Those asks need to come in the form of, "Man, I'm working 7 days a week on this, that, and another thing, trying to pay off debt, save money, but there's just so much I don't know. Is there any way that you'd consider sitting down with me to help me out?" That's a lot different than the normal, "Hey, I'm having trouble figuring out where to start and am looking for a mentor..." sort of request.
Lastly, be self aware and know what you want to accomplish. If you don't have clear goals and objectives, it is easy to get distracted by the next shiny thing. As Stephen Covey says, "Begin with the end in mind."
Hi @Keshaun Harden! First off, good on you for identifying where you want to go! I would definitely recommend reading both Rich Dad Poor Dad and then Set for Life by @Scott Trench. Set for Life is extremely practical and gives concrete advice on how to achieve your goals - whereas Rich Dad Poor Dad is great for the big picture ideas, but doesn't have much in the way of pragmatic, actionable steps. Best of luck to you and hope this helps!
I appreciate the recommendations! I have read Rich Dad Poor Dad but not Set For Life so I will definitely be picking that one up soon
I am new to BiggerPockets and new to real estate investing. I'm 25 I'm $50k in debt, but I want to become debt-free, replace my income from work, move out of my parents' house, create a better quality of life, and build wealth through small multi-family properties. What do I need to do to get started? And who do I need to be apart of my team? I live in Georgia
What kind of debt?
Credit card debt. It's definitely been a cloud over my head
Wish I would have started when I was in my 20's! Be relentless in paying that debt down, do side work that gets you experience in real estate to earn extra money and grow your knowledge. Start analyzing deals and building your network now.
Good luck!
I never thought about doing side work in real estate.. that's a great idea! How can I get involve in real estate on the side?
Congratulations, you are in the right place. There is so much free information here-take advantage of it. Stalk the forum, analyze deals, network, read and learn about different strategies, pay down that debt, start building your "team" and play with the calculators. You are ahead of most people just buy knowing you want more. If you see someone post about a deal that they did, ask questions. Most people love to talk about their successes and will be happy to have conversations with you. Good luck and feel free to reach out!
You are so right... thank you! I will definitely be immersing myself in this sea of information
@Keshaun Harden going off of other BP members, pay down your debt. Lenders will account for your DTI when approving you for a loan, so try and get the debt off your name as soon as possible. Since you are starting, I would highly recommend that your first investment/purchase is a house hack deal. Begin by educating yourself on the strategy of house hacking by reading and listening to house hack-specific books and podcasts respectively. In the meantime, continue to save capital and build credit to further enhance your borrowing capability stature. Your team is going to consist mainly of your real estate agent and lender. Network with agents who have either house hacked before or regularly help house hack clients source deals. As someone else had mentioned, "Set for Life" is a great read and provides practical steps for someone in a position like yourself. Which market of Georgia are you in? Hope this helps!
House hacking is actually something I am highly interested in. I will continue to educate and familiarize myself with it. I live in middle Georgia, but I'm willing to invest in places like Atlanta that aren't that far away... What is your experience with house hackers?
I'll echo the thoughts of @Michael Dumler and @Jacob Stevenson on this one - pay down that debt. I found myself in a similar position around your age. I had about 80k in debt though. Work your a$$ off, live off of nothing, and be patient. If you are in your 20s and have not started collecting kids, dogs, or commitments, this is the time to delay gratification and throw all that you have into something. The old saying about entrepreneurs is that they will work 80 hours a week so that later they don't have to work 40. You're on the front end of that.
Though it is redundant from the advice above, what I wish that I would have done rather than buying a standard single family home as my first house was to do some sort of a house hack. Once you get your DTI where in needs to be, buy a house, get roommates to pay you rent or do something with more than 1 unit (basement apartment may be a good low cost starting point) and live in the worst unit while renting out the rest.
Find work or side hustles that get you around accomplished real estate professionals/investors as well. You'll see people posting on here all the time asking about mentorship or investment partners. The best way to find that is to get noticed in the midst of you keeping your head down and working hard. Ask for help and advice from those folks you come in contact with, but you can't steer a parked car. Those asks need to come in the form of, "Man, I'm working 7 days a week on this, that, and another thing, trying to pay off debt, save money, but there's just so much I don't know. Is there any way that you'd consider sitting down with me to help me out?" That's a lot different than the normal, "Hey, I'm having trouble figuring out where to start and am looking for a mentor..." sort of request.
Lastly, be self aware and know what you want to accomplish. If you don't have clear goals and objectives, it is easy to get distracted by the next shiny thing. As Stephen Covey says, "Begin with the end in mind."
Wow.. thank you for this. It's inspiring to know that someone was in a similar position (even worse!) and made it out of it. You're absolutely right, there are no substitutes for hard work. Combine that with an unquenchable curiosity and a clear vision.. look out. I'll definitely be looking back on your words to reinforce what I need to do
@Keshaun Harden Thanks for those kind and encouraging words. There's a lot of shame that came with my 80k hole to dig out of. You're not alone and not the only one. I didn't come up with this and it is a common saying, but if you make mistakes with money, it doesn't mean you're a failure, it means that you're a human being.
If most of your debt is credit card debt, get that paid off. The way that I looked it was that I was getting a 18-24% return on my money by paying those off based on the stupid interest rates. If you can get a guaranteed return of that amount, you take it. And you're the playing the long game here. I was about your age when I started to clean up my mess. I am now 39 and just bought my 2nd investment property. It takes patience. I'm more conservative than many on this forum, but because of my background and the mess that I got myself in, I respect the dark side of debt and have a lower tolerance for leverage than most. That goes back to being self aware. For me, it's a slow and steady wins the race approach.
Cut unnecessary expenses and find our ways to generate income.
Wish I would have started when I was in my 20's! Be relentless in paying that debt down, do side work that gets you experience in real estate to earn extra money and grow your knowledge. Start analyzing deals and building your network now.
Good luck!
I never thought about doing side work in real estate.. that's a great idea! How can I get involve in real estate on the side?
Get your real estate license. Not only does it offer you the opportunity to be around others that live real estate, when you find a property you ant to invest in you get a commission for buying it.
Wish I would have started when I was in my 20's! Be relentless in paying that debt down, do side work that gets you experience in real estate to earn extra money and grow your knowledge. Start analyzing deals and building your network now.
Good luck!
I never thought about doing side work in real estate.. that's a great idea! How can I get involve in real estate on the side?
Get your real estate license. Not only does it offer you the opportunity to be around others that live real estate, when you find a property you ant to invest in you get a commission for buying it.