I need advice on getting started with real estate investing
Member since 2022 · 12 posts · 3 votes
I need advice on getting started with real estate investing
Most Popular Reply
Alex BreshearsBusiness Member
Lender · Springfield, MO · Member since 2020 · 354 posts · 504 votesHi Randy!
Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.
I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.
1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!
2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.
3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.
4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!
32 Replies
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes4y
@Randy Griffin
You may want to look at some passive syndications. Other options could look to invest in notes / low dollar private lending.
This also depends on how much time you have and how active you want to be.
7e investments53 Reviews - 4yTheresa HarrisPro MemberMember since 2019 · 15k+ posts · 11k+ votes
Is that what you have for a down payment and closing costs and you can get a mortgage for the other 80%?
- 4yAlex BreshearsBusiness MemberLender · Springfield, MO · Member since 2020 · 354 posts · 504 votes
Hi Randy!
Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.
I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.
1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!
2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.
3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.
4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Theresa Harris:
Is that what you have for a down payment and closing costs and you can get a mortgage for the other 80%?
Currently I am looking at a beach condo for 170k which will be about 30-35k down. But I have up to 50k to spend I would like to know the best avenue to take I’m between flipping and long term rentals right now, but definitely open to other options
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Alex Breshears:
Hi Randy!
Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.
I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.
1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!
2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.
3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.
4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!
- Member since 2022 · 12 posts · 3 votes4yThanks Alex for such informative words and yes I have found my why which is to be able travel more than 3 weeks a year
Quote from @Randy Griffin:
Quote from @Alex Breshears:
Hi Randy!
Where to start is a very popular, yet personal questions, so I'm glad you are looking for advice about this.
I'm going to take a different approach than most and say you actually need to stop and do some work before you even start the real estate journey. Here are a few considerations you should be looking at even before you start.
1. What are your personal goals? (don't just answer financial freedom, everyone wants that. In reality they generally want something else that financial freedom allows them to do). I suggest asking yourself "why" 5 times to get to the root of the desire to invest. For example: I want to invest in real estate. Why? I want monthly cash flow so I can leave my job. Why? Because I want to spend more time with family? Why? My parents were always home and available to me as a kid, so I want my children to have that same experience. etc etc etc. When you can see a picture of your why, write that down!
2. Think about that real root goal. What does it look like? How much time will you have to spend on other endeavors if you hit that goal. Buying 20 single family homes to be rentals sounds amazing, but only if that is your goal. Personally I'll never own long term rentals, but that's just me. Tried it, hated it, got the tshirt, not going back. In this section you are really trying to think about WHAT you enjoy doing, WHEN do you enjoy doing it, what is your lifestyle going to be when you hit that goal. There is no point in trying to invest as a GP multifamily syndicator if you really don't like the multifamily space, and don't want to sit in on weekly GP calls for asset management updates.
3. Once you have the goal, your time commitments, think about what else you bring to the table rather than money. Believe it or not, money is the easy part. Commitment, consistency and follow through is the hard part. What do you bring to real estate investing? Do you have a construction background? Have you done project management? Are you a structural engineer? Are you good with people? Do you have a brokers license? Do you love working with Excel analyzing data and making graphs? There are a lot of things you COULD bring to the table, but also realize do you enjoy those things and how much time will those things take up in your life.
4. NOW you are ready to explore the options in real estate investing. You can narrow down the buffet of choices pretty easily by eliminating options that purely just don't fit your strengths, goals or time commitment. Don't focus on your limitations and what you can't do right now. Ask your brain how can I do this, instead of shutting down your thought process with a declarative statement of " I can't do this" and then you fill in all the reasons why. Come with an inquisitive open mind, and you will find a way. You will also attract other people that exhibit those qualities, and building that team of people that all have the same goals is amazing! You don't have to go it alone!
Also, the models that I am currently doing is house hacking as well long term rentals but now since my income is growing I’m trying to find some kind of formula to find deals to flip or short term rentals - Member since 2022 · 12 posts · 3 votes4y
Quote from @Chris Seveney:
@Randy Griffin
You may want to look at some passive syndications. Other options could look to invest in notes / low dollar private lending.
This also depends on how much time you have and how active you want to be.
Thanks Chris I will definitely take a look
- Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes4y
The first thing to do is free. Figure out your goals for investing. Where do you want it to take you? What does it look like 3, 4, and 5 years from now? Do you want to be hands on or extremely passive? Do you want to take advantage of tax savings or would you rather just get "quick" cash? The answers to those questions will help you figure out where to start.
If I was starting over (and this is just me), I would be looking to use that as a down payment for a flip. I would then take the profits from the flip and get into small multifamily buy and hold. I would work to add value to that property so I could eventually either sell or refinance to add to my portfolio or upgrade to more units.
That being said, you'll find answers to almost any questions you might have here on BP. Dig in and ask. Respond to answers. The investors on here (for the most part) are more than happy to give pointers and advice.
DON'T GET STUCK IN ANALYSIS PARALYSIS!! Take action! Good luck!
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Chris Seveney:
@Randy Griffin
You may want to look at some passive syndications. Other options could look to invest in notes / low dollar private lending.
This also depends on how much time you have and how active you want to be.
Thanks Chris I will definitely take a look at your suggestions
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Billy Daniel:
The first thing to do is free. Figure out your goals for investing. Where do you want it to take you? What does it look like 3, 4, and 5 years from now? Do you want to be hands on or extremely passive? Do you want to take advantage of tax savings or would you rather just get "quick" cash? The answers to those questions will help you figure out where to start.
If I was starting over (and this is just me), I would be looking to use that as a down payment for a flip. I would then take the profits from the flip and get into small multifamily buy and hold. I would work to add value to that property so I could eventually either sell or refinance to add to my portfolio or upgrade to more units.
That being said, you'll find answers to almost any questions you might have here on BP. Dig in and ask. Respond to answers. The investors on here (for the most part) are more than happy to give pointers and advice.
DON'T GET STUCK IN ANALYSIS PARALYSIS!! Take action! Good luck!
Great advice I’m actually trying to figure out a formula or a method to finding flips, but I’m currently house hacking with family members and I have a long term rental bringing in a little over 450 cash flow a month I’m just looking to grow through flipping any advice
- 4yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
Your posts are usually great, and your advice is usually awesome! But why would a new investor want to put their life savings into a syndication? And how in the world would they find a reputable one without a network?
House hack!
- 4yPatrick DruryBusiness MemberReal Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
@Randy Griffin
You should invest in a small multi-family or a single-family rental. If the prices make sense locally do a house hack. - Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
Quote from @Randy Griffin:
I have 20-25k available for investment where do I start.
Use the magnifying glass at the top of the screen to search for "house hacking' and real up on it.
The DIY Landlord Book4.7247 Reviews - Member since 2016 · 1 post · 0 votes4y
There are plentty of ways to get into this world. You have to figure out your personality and wishes - what are the things you are good at ? Selling? Talking to people? I would suggest wholselling. Are you trying to build wealth quick? Try flipping. Looking for long run? Try rental. In any case Start the basics - get to know the numbers, analyzing investment area, analyzing deal, estimate a rehab, negotiate, buy.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes4y
Quote from @Nicholas L.:
Your posts are usually great, and your advice is usually awesome! But why would a new investor want to put their life savings into a syndication? And how in the world would they find a reputable one without a network?
House hack!
Would you rather get in a plane with someone who has flown 1000x or someone who has never flown? Contrary to what many people post on BP, there is a very high percentage of people who lose money in real estate. $20-$25k is a very low dollar amount in real estate and the individual has NO experience. Why would you not invest in a syndication, let it grow for several years while saving up money and learn more about real estate and if you truly want to be an investor.
7e investments53 Reviews - 4yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
@Chris Seveney I'm not saying syndications aren't a great option, I'm just saying they're generally not a good option for first time investors. Or at least, it's probably difficult for a first time investor with no experience and no contacts and no network to find a reputable one. Thoughts on that?
I totally agree with you that many people lose money in RE. That's why I think first time investors should house hack, and generally not do anything else.
- 4yEvans WrightPro MemberRental Property Investor · Charlotte, NC · Member since 2014 · 101 posts · 92 votes
You should look into house hacking a multifamily property. You would only need to come up with 3.5-5% down.
- Member since 2022 · 31 posts · 22 votes4y
Randy, I am in the same boat as you looking to buy my first property with about the same money available. Small multifamily has been really tough to find in the Charlotte, NC area and has forced me looking for other ways to house hack. Something to consider would be looking at some houses that need fixed up and trying to get a 203k loan with the 3.5% FHA financing and renting out one of the rooms. Doing that for a year would build some equity in the property and after a year of living there you could do it again for a low money down payment or look for multi-family as the market may be different than it is now.
If you have no idea where to start at all I would suggest reading some of the books that Bigger Pockets which has helped me get more creative in ways of planning what I want to do and how I can do it.
Hope this helps!
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Chris Reichenbach:
Randy, I am in the same boat as you looking to buy my first property with about the same money available. Small multifamily has been really tough to find in the Charlotte, NC area and has forced me looking for other ways to house hack. Something to consider would be looking at some houses that need fixed up and trying to get a 203k loan with the 3.5% FHA financing and renting out one of the rooms. Doing that for a year would build some equity in the property and after a year of living there you could do it again for a low money down payment or look for multi-family as the market may be different than it is now.
If you have no idea where to start at all I would suggest reading some of the books that Bigger Pockets which has helped me get more creative in ways of planning what I want to do and how I can do it.
Hope this helps!
- Member since 2022 · 12 posts · 3 votes4y
Quote from @Randy Griffin:
Thanks Chris sounds good but I am more interested into finding property to flip. Because I just purchased a home up here Charlotte so that makes it hard to that kind of house hacking. But thanks for your adviceQuote from @Chris Reichenbach:
Randy, I am in the same boat as you looking to buy my first property with about the same money available. Small multifamily has been really tough to find in the Charlotte, NC area and has forced me looking for other ways to house hack. Something to consider would be looking at some houses that need fixed up and trying to get a 203k loan with the 3.5% FHA financing and renting out one of the rooms. Doing that for a year would build some equity in the property and after a year of living there you could do it again for a low money down payment or look for multi-family as the market may be different than it is now.
If you have no idea where to start at all I would suggest reading some of the books that Bigger Pockets which has helped me get more creative in ways of planning what I want to do and how I can do it.
Hope this helps!
- Member since 2022 · 12 posts · 3 votes4yThanks I would definitely like to connect
Quote from @Aj Parikh:
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
- Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes4yFeel free to schedule a call on my calendar
Quote from @Randy Griffin:
Thanks I would definitely like to connectQuote from @Aj Parikh:
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
https://calendly.com/ajparikh/30min - Member since 2022 · 12 posts · 3 votes4y
Quote from @Aj Parikh:
Feel free to schedule a call on my calendarQuote from @Randy Griffin:
Thanks I would definitely like to connectQuote from @Aj Parikh:
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
https://calendly.com/ajparikh/30min
Ok definitely - Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes4y
Quote from @Aj Parikh:
If you are willing to explore turnkey companies out of state, then 20-25k should be enough for a downpayment to buy a SFH that cash flows. Let me know if you want to connect
Bruhhh you can take that $25k and get a duplex in the land
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