Establishing a Plan at the Beginning

Establishing a Plan at the Beginning

Investor · Columbus, OH · Member since 2013 · 72 posts · 18 votes

Hello BP,

I realize "just do it" reigns in business, as well as corporate slogans, but I'm having some trouble in deciding what and, more specifically, how to jump in.

I probably have read more about corporate strategy and planning than the actual Xs and Os of REI.Why?Because when I think of a business to start, I think of how to expand it (which is an essential attribute to me).

I understand the basics of buying property, I believe, but I'm trying to wrap my mind how I can do that on a regular basis.I can buy some property this month if I want, but I want to learn how I can do that, and then buy another one ASAP (FWIW, I'm thinking about buying and holding -- renting out -- first, then I may branch out into other REI methods).

How did many of you start and how do you look forward? I don't recall really reading examples how to amass a rental portfolio (although I suppose creative financing can come into plan); from buying one property, doing such and such, and then buying another.

Right now I'm kind of at the point I'm deciding how I want to do things long term.Perhaps I'm thinking too far into the future, but that's how my brain's wired.Do I need to just dive in, or am I on the right track, but need to do more planning.

I'm not at all looking for a get rich quick scheme, but am looking for ideas how to build a business in the planning stage.

Thanks!

-Christian

0Reply
22 views

Most Popular Reply

Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
12y

A "paint and carpet" buy and hold is a good way to start. It's relatively safe, slow, and plenty exciting.

Flipping a house without an established team is risky and can be torture. Some never recover from it.

When you hold, you get to build your team at a more tolerable pace. Once you have a decent, core team in place and some experience, flipping becomes a more enjoyable option.

Note, you still need to buy the house at a good price regardless of your strategy. Probably the most important part of the business but you have more leeway if you're holding.

See this reply in the discussion

8 Replies

Jump to latestLatest
  • Real Estate Investor · Jefferson City, TN · Member since 2011 · 16 posts · 4 votes
    12y

    Hi Christian, you're definitely on the right track. Wholesaling, which is what I seem to hear a lot of sales pitches on, is great but real wealth and monthly cash flow is the place to get as soon as you can. I started about 9 years ago by buying one single family home and renting it out. I got my system down and was able to start with a very small amount of cash and buy 1-2 new houses a month. My younger sister is wanting to create some extra monthly income from real estate and I've been working on writing out my steps and advice for her to follow. Send me a message if you want me to send it to you or if you have questions.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    12y

    @Christian Lautenschleger

    Columbus is an awesome market, I went to OWU in Delaware OH.

    Here is a Planning Video to get you some ideas. http://www.biggerpockets.com/blogs/3/blog_posts/31903-planning-your-rei-business

    Best of luck and reach out to me if you need some pointers. Land Contracts and Lease Options are great tools.

    Brian

  • Property Manager · Columbus, OH · Member since 2012 · 309 posts · 275 votes
    12y

    Do I need to just dive in

    Yes. There is no substitute for experience. Buy one property, get it rented, and let the dust settle. You'll be shocked how much that process will teach you.

  • Investor · Columbus, OH · Member since 2013 · 72 posts · 18 votes
    12y

    Thanks, gentlemen!

    So, just starting out for a buy or two will make everything work itself out?

  • Residential Landlord · Columbus, OH · Member since 2013 · 38 posts · 2 votes
    12y

    Hi Christian,

    I'm just trying to get started in Columbus, Ohio too.

    Best of luck and let me know if you ever want to join resources or just need someone to bounce ideas off.

    I'm hoping to close on a property by the end of January.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    12y

    @Christian Lautenschleger

    It sounds like you have a mild case of analysis paralysis. Set one or two small goals. Accomplish those. That experience will help you get past many of the "what if" scenarios. What you think you long term goals are today may change with experience. If you intend to do rentals you must buy right and screen your tenants well. Everything else usually falls into place. Last, remember we all are still learning every single day. If we wanted to know it all before we jumped in not one of us would own real estate. As was said in one of the posts: just do it!

  • Developer · Decatur, GA · Member since 2011 · 1k+ posts · 1k+ votes
    12y

    A "paint and carpet" buy and hold is a good way to start. It's relatively safe, slow, and plenty exciting.

    Flipping a house without an established team is risky and can be torture. Some never recover from it.

    When you hold, you get to build your team at a more tolerable pace. Once you have a decent, core team in place and some experience, flipping becomes a more enjoyable option.

    Note, you still need to buy the house at a good price regardless of your strategy. Probably the most important part of the business but you have more leeway if you're holding.

  • Investor · Columbus, OH · Member since 2013 · 72 posts · 18 votes
    12y

    @John Thedford Yeah, I think I'm exactly what you're describing. I suppose perfectionism can be a gift and a curse. But it's one of those things that after you do once, you don't experience that paralysis again.

    @Rick Baggenstoss I'm not looking to buy to flip, yet. I suppose once I have enough experience that I can value property, and have enough time to flip, I will give it a shot (or better yet, buy if, restore it, and rent it out).

Join the conversationCreate a free account to reply, vote on answers and follow this thread.