I need help starting in real estate
I am a nurse by trade, but I have always wanted to invest in real estate, and make my living doing so. I need guidance and help on where to start, to get my first properties. I am ready to do all the work, and I want to start as soon as possible with my future investments.
Can anyone help, or guide me in the right direction please? My end goal is to have multiple rentals units and properties, and invest and resell as well. I am very passionate and motivated. I am good with numbers, and I think that I will very good in this business.
For guidance, work on saving money for the initial down payment. If you are willing to house hack, you should look for a 4 plex and live in one unit. This way, you can get an FHA loan and have low money down. Start talking to bankers right now to get an idea for what you'll need to bring to the table.
If you insist on quitting your primary income source, you'll want to look into wholesaling or find a job with a property management firm, investment firm, or real estate brokerage. There are many ways to start in RE, but they all are a slog at first and require plenty of work and time to do right.
Best of luck to you.
@Penda Sarr, to piggyback off of Ben, I highly advise that you look into the real estate investment strategy of house hacking. In short, the strategy allows you to get into real estate with a relatively low downpayment, better rates/terms and will enable you to grow your portfolio year after year if performed correctly. Start connecting with resourceful vendors now (real estate agents, lenders, PMCs, contracts, etc.). Hope this helps!
Hi, thanks for the reply. I m already a traveling nurse, that was the reason I went to travel so that I can start investing. I also already bought my first house in November for my family and I.
The idea of 4plex, it’s great, but I already have a house.
Thank you, I will reach out
Welcome to the BiggerPockets forums!
1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.
6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
Hi @Penda Sarr!
I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.
I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.
In most cases, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.
Best of luck getting started! Here for you with any questions you have along the way!
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#2 Managing Your Property Contributor
- Property Manager
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If I had to start all over again, I'd look to acquire a 2-4 unit property with an FHA low-down payment mortgage.
Getting it under market value would be a bonus.
So, would using an FHA 203k renovation loan, which would allow me to buy something unqualified for a standard mortgage, which would weed out a lot of competition and push the price lower.
Hopefully, I would increase the value of the property in 1-2 years and be able to refi out of the FHA mortgage. I'd also learn a lot about maintenance and managing tenants.
Then, with my hands-on experience, I could decide if I wanted to repeat the process or target 5+ units - which my experience would help with lenders.
Good luck with whatever you decide to do!
Thank you so much. I ll work with my realtor, I can start in a 100 k house, or units … but I ll bring up all these ideas to him
@penda sarr I am also in the medical field and traveling doing Locums. I haven't started the road officially yet, working on getting finances straight and hoping to Capitalize on the pullback in real estate with inflation, with the plan to purchase around April to have any renovations done and open for potential June move ins coinciding with the change of internships and fellowships around the hospital.
Though I'm not even a rookie yet, I have listened to no less than 5 books on real estate investing. Because I travel a lot like you, I have found listening to the audible books helpful.
I am looking to attend some meetings in the area to make connections now so that when I do start the process I can hit the ground running. I know there have been a couple meetups in the metro Detroit area. You might look into one of those to make good connections to help your business out.
Good Luck
Hi Penda! Have you tried to explore investing with turnkey companies? It is one of the easiest ways to get started and build your portfolio. Let's connect if that is something you want to explore
Quote from @Aj Parikh:Hi, no I haven’t thought about that yet, but I m curious. We can definitely connect
Hi Penda! Have you tried to explore investing with turnkey companies? It is one of the easiest ways to get started and build your portfolio. Let's connect if that is something you want to explore
Quote from @Ty Ash:
Hi @Penda Sarr!
I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.
I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.
In most cases, a house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point, make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.
Best of luck getting started! Here for you with any questions you have along the way!
Great advice - same thought here. Start with house hacking. It is not for everyone but if you can manage it - it will be financially rewarding long term.
Quote from @Penda Sarr:
Quote from @Aj Parikh:Hi, no I haven’t thought about that yet, but I m curious. We can definitely connect
Hi Penda! Have you tried to explore investing with turnkey companies? It is one of the easiest ways to get started and build your portfolio. Let's connect if that is something you want to explore
Just sent you a DM
Hi Penda! Real estate is a great opportunity and tool for everyone to use as another source of income! If you have the motivation and passion for it you can really go far and realize the full potential of it. I'm sure you have done tons of research and listened to podcasts so you have general knowledge. One important thing every successful real estate investor has is a great team of agents, contractors, ect. Send me a message!
Hello, and thank you for replying. I d love to connect