First Investment

[Parisha Randall]

I am hoping to acquire my first property in the near future, but not sure what type of job I should take on a new investor. Buy to flip, buy to rent, home condo or multifamily home. I have some ideas, but is there anyone that may have some advice for this newbie??

[Henry M.]

Originally posted by Parisha Randall:

I am hoping to acquire my first property in the near future, but not sure what type of job I should take on a new investor. Buy to flip, buy to rent, home condo or multifamily home. I have some ideas, but is there anyone that may have some advice for this newbie??

It truly comes down to your wants vs. needs. Your circumstances vs. your finances. Your Credit vs. Cash on Hand.

Also I would not allow any mindset of any particular property dictate a deal. In other words, if you could acquire a condo at $.50 on the dollar (staying well within the 70% rule of rehab and all costs), would you not go for that deal? There are so many creative hold and exit strategies available to most investors.

It is good to have a plan then execute based on your researched specific target areas in real estate investing. You should have no issue in moving forward with ease.

I believe at minimum a duplex vs. single. However, if a single was a great deal then go for it. I would be more specific about locations than the properties themselves. I would also get second opinions and hands down, you must do your due diligence. Speak to any and everyone about real estate and read, read, read.

When I started, I would go to Barnes & Nobel, buy me some hot cocoa, grab me a few books that were specific to what I was researching, plop down on one of those comfy chairs and read any chapter that caught my eye within the table of contents. If I read something that was profound or had info such as a website address, etc., I would just take a picture with my cell phone. If what I read in the book was just that good, I'd buy it.

The first 17 plus years of my real estate investing was done part time. I was a full time foster/house parent for 18 years (average 10 -12 youth at an average age of 16 years old) which dominated most of my schedule, yet I was able to close deals left and right. Whether it was buy and hold, fix & flip, short-sale, wholesale, or other, I went after it.

I even used it as a teaching tool for my teenage foster youth when it came to me negotiating, rehabbing - prep & demo, cleaning, and renting. The obedient youths (usually between two to three) were rewarded in making money when it came time to deep clean a ready and vacant apartment. I would pay them $40 bucks, bought them snacks before and a meal after. If the job took two hours or three, it all was up to them and their work ethic. As long as it passed my expectation, then we would leave and they would be rewarded. Some would get excited when a potential tenant walked into the apartment and just compliment the work and cleanliness of the unit.

This is what I love and in my circumstance, I incorporated it into my work and lifestyle.

Bottom-line, it has to be a passion at minimum to be successful doing this part time.

I hope this kind of helps. Needless to say, welcome to the BiggerPockets family and continue to network and learn.

Just my two pesos.

Big Henry