Hey I'm Brandon! Nice to meet you!
Hey everyone!
I'm not sure if I should even be given the time of day. I've been one of those people that you might consider "just a talker" that most wouldn't give a second thought about. I've always lived paycheck to paycheck, and even let others care for me financially while I blew my money on food, and video games. I still to this day have the habit of wasting all of my money on fast food, energy drinks, and almost anything my children, and wife ask me for. I work 10 hours a day 4 days a week for under $20/hr. I have a credit score in the range of 550-600. I don't have a dime in savings, and less than $50 in my checking account until payday comes. I have $1,000 in medical bills that are in collections, and only a $100 line of credit that I acquired through Amazon last week! To call me financially irresponsible is putting it lightly. I'm financially illiterate, and have no knowledge of how real estate works, but it has been something I've talked about wanting to get into from time to time since an old acquaintance told me of his dream to flip foreclosed homes.
I've recently realized my own mortality so to speak and came to the conclusion that if I don't change my habits then I will have nothing for my children to inherit when I do eventually pass away. I'm only 31, but anything could happen. I'm not sure if now is even the right time for me to join the BiggerPockets community, but I'm hoping that by doing so it will help break me of my bad financial habits and change my mindset so that I can eventually reach that financial freedom I've been hearing about. My goals sound simple. Financial Freedom, and something to leave behind for my kids to inherit when I pass away. A trip to the Bahamas once in my life sounds nice too!
Quote from @Brandon Hitchins:
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.
First of all, hats off for you having the courage to come to this forum and post your story. That couldn't have been easy, but just acknowledging your financial condition in this way is a huge step in the right direction. My advice from now through the end of this year is:
1. Start listening to the biggerpockets podcasts. Go back, start at episode 1, and listen to as many episodes as you can. Try to listen to at least 3-4 per week. Soak up everything you learn. A lot of it won't make sense at first, but that's ok.
2. Buy and read 'Rich Dad Poor Dad' written by Robert Kiyosaki. The book was written a long time ago and people have mixed feelings about the author nowadays, but the book is pretty widely accepted as the book that got most new real estate investors started on their journey.
3. Buy and read "I Will Teach You To Be Rich" written by Ramit Sethi. This one is not a real estate book, but it is a GREAT personal finance book. Very beginner friendly. It'll help you get your finances and credit in order.
4. Browse the biggerpockets forums for 30 mins every day. Read the threads that peak your interest. Participate in the discussions when you have a question or something to add.
5. Stop eating fast food and drinking energy drinks. Start eating healthier and taking care of yourself. It'll give you a boost of motivation and energy that you haven't had in a while. You can cheat and eat out a few times a week, but eat clean most of the time. You'll be amazed at what happens to your mind and body.
If you do these things, you are going to be miles ahead of where you are today by year end. The good news is you are very young. You've got your whole life ahead of you to get back on track. Plus you already have a wife and a family! That's something to be proud of. Some people are in much worse shape at 31.
It takes a lot to be this open about where you are in life and it's great that you have an idea of where you want to go! Welcome to the community.
I'd recommend that you keep/start learning! Podcasts (BP Money if you're trying to improve your financial literacy), Books, and Mentors you find by networking.
I'd pick up a copy of Rich Dad, Poor Dad and Set for Life by Scott Trench as each 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.
As for real estate investing, 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.
Here's a great resource right here on BP:
https://www.biggerpockets.com/real-estate-investing/house-hacking-strategy
Best of luck getting started! Here for you with any questions you have along the way!
Thank you for the responses! After reading what you've all said I'll definitely be purchasing at least "Set for Life", and "Rich Dad Poor Dad" when payday comes around and begin reading then as soon as possible! I do listen to the podcasts on YouTube while at work, but can't always focus on what's being said so ill start over from episode one. I didn't expect to receive any replys, so I want to thank you again for telling me where to start!
Hi @Brandon Hitchins! Welcome to Day 1, and BiggerPockets. It really comes down to discipline and motivation. What really motivates you? What are you willing to sacrifice to get it. The book recommendations are spot on, but if you want more tangible help with building a budget, organizing your financial life etc, please reach out.
Quote from @Alicia Marks:
Hi @Brandon Hitchins! Welcome to Day 1, and BiggerPockets. It really comes down to discipline and motivation. What really motivates you? What are you willing to sacrifice to get it. The book recommendations are spot on, but if you want more tangible help with building a budget, organizing your financial life etc, please reach out.
Thank you! You will probably be hearing from me in the future!