New to Real Estate Investing

Starting Out
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New to Real Estate Investing

Account Closed
Member since 2022 · 1 post · 1 vote

I'm 26 and just recently started my real estate LLC as of April but work a full time 3rd shift job. I know the basics about investing but since I just started and don't even have the necessary capital to fund my first investment property I feel like there are millions of things to do. I'm basically on my own with this but really looking forward to the financial freedom that this field offers. The problem is that with my busy schedule, I don't have time to establish a solid team. Even looking on how to get financing for a potential property seems like a task. I started this LLC with legalzoom and have to pay fees every month and it's frustrating. I've already set up my business account at the bank so that's one more thing I can cross off my list. But this all leads me to think I just have to pick up the pace and do some more research, but not too much to the point where I'm just constantly sitting still. Again, I'm new to this and would just like some feedback on what would be the next best course of action to gain some type of momentum.

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Erin ChurchPro Member
Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
4y

I agree with both @Joe Villeneuve and @Cody Z. - Learn about as many strategies as you can, and then start to narrow down what you'll focus on. You could maybe set aside the next month to just read, attend BP Webinars (please do this, they're great!), listen to Podcasts, and ask questions in the forums. Start off trying to learn "a mile wide and an inch deep". Then, figure out which areas are the most interesting. Spend another month (or two weeks or whatever amount of time seems appropriate) learning "a mile deep" on those very few, narrowed-down topics. Then, dive in! :) If it's wholesaling, make/buy a list and start calling, walking neighborhoods, and chatting with folks. If it's BRRRR or Flipping, find some lenders that go on the value of the deal and then start making offers (after running numbers and knowing what makes sense).


Oh, and starting like yesterday, try to find some good meetups in your area! If you're around Augusta, GA, I can recommend several! :) Getting to network with like-minded folks in your area can be so, so helpful.

I hope your next year self looks back and appreciates how far your current self has come :)

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  • Cody Z.
    Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
    4y

    @Account Closed Welcome to Real Estate investing! I think a great first place to start would be deciding what you would like to do in Real Estate (e.g. Wholesaling, Flipping, Small Multi-Family, a House-Hack, Commercial, etc.). I'm sure that you'll probably think "I have no idea..." which tells you that you need more clarity in your investing goals.

    When starting out, in my opinion, it is best to pick one strategy, learn a decent amount about it, and put it directly into practice while you learn. This will keep you engaged, motivated and making forward progress until you "finally" get your first deal done.

    Wishing you all the best on your journey!

    2Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    4y

    Learn as many strategies as you can before you start. Learning one strategy limits your options and can easily make you force a deal that doesn't exist. Learn, how to analyze markets, how money works, and develop an overall REI Plan that is based on your specific financial needs.

    1Reply
  • Marc Izquierdo
    Investor · Bristol Borough, PA · Member since 2016 · 135 posts · 53 votes
    4y

    Hey Willie,

    I remember being in your spot just about 6 years ago. I was also 26 years old and was ready to throw my life into real estate. My advice to you is to first shut down that LLC and stop paying the fees. You don't need an LLC to get started and it's just more money that you're spending and not saving for a property. Additionally, I recommend buying your first couple of properties in your personal name. Doing it this way, you'll be able to get a nice clean conventional loan. Loan underwriters will love you, especially with a full time job. You'll get very favorable terms this way. I bought my first three duplexes and a flip I just finished in my personal name (no LLC needed). Just make sure that you put good liability coverage on your properties (I usually look for at least $1M per property). Additionally, get some umbrella insurance to add more liability coverage. It's maybe $50 bucks per month for an additional $1M. With that structure, there should be no need for an LLC.

    Next, go get an unsecured personal line of credit for as much money as you can get while you have your full time job. This will turn out to be invaluable in the future to use for rehab costs or whatever else you need it for (from a business perspective, not consumer spending!)

    While you're doing that, save, save, save! While you're saving, learn, learn, learn! Books and podcasts should get you the knowledge you need to start. Real estate is a slow and boring process. So as you're saving and learning, you're probably going to feel impatient but it's what needs to be done at this stage. Best of luck to you!

    2Reply
  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 396 posts · 353 votes
    4y

    Hey Willie,

    I'll echo what others said - I would start by looking into what it would take to get into a great house-hack in your area. For me, back when I first started, the goal of the house hack was to eliminate my entire PITI so I could instead use those savings toward the next one and the next. You got this - keep learning, listening to the BP podcasts, asking questions, live intentionally and within a short number of years you'll see your net worth and opportunities exponentially grow. You'll get more out of real estate than you ever put in.

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    1Reply
  • Erin ChurchPro Member
    Real Estate Agent · North Augusta, SC · Member since 2017 · 254 posts · 233 votes
    4y

    I agree with both @Joe Villeneuve and @Cody Z. - Learn about as many strategies as you can, and then start to narrow down what you'll focus on. You could maybe set aside the next month to just read, attend BP Webinars (please do this, they're great!), listen to Podcasts, and ask questions in the forums. Start off trying to learn "a mile wide and an inch deep". Then, figure out which areas are the most interesting. Spend another month (or two weeks or whatever amount of time seems appropriate) learning "a mile deep" on those very few, narrowed-down topics. Then, dive in! :) If it's wholesaling, make/buy a list and start calling, walking neighborhoods, and chatting with folks. If it's BRRRR or Flipping, find some lenders that go on the value of the deal and then start making offers (after running numbers and knowing what makes sense).


    Oh, and starting like yesterday, try to find some good meetups in your area! If you're around Augusta, GA, I can recommend several! :) Getting to network with like-minded folks in your area can be so, so helpful.

    I hope your next year self looks back and appreciates how far your current self has come :)

    3Reply
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