Real estate investing (Starting Out)

[Richard Dunklin]

Hi everyone 

I need some advise with getting into real estate.  I want to get into Realestate investing, I am tired of the 9 to 5 corporate job.  I have been to many seminars on the subject and been watching a lot of youtube.

It's hard for me to get involved in with realestate because I am in a chapter 13 and don't have a money or savings for a deposit.

I am studying for my license currently in the hope's of getting into investing and also chicago has the law were u can't buy more than one property at a time without having a realestate license.

I am looking at the BRRR method, storage facilities and other investments. My goal is to purchase a Multiplex and rent to section 8 and leave in one unit for a year.

Really would like to get started and have some advice on what direction to take

[John Warren]

@Richard Dunklin you are definitely in a tough spot here. The real estate license, while it may help, is not going to solve any of your issues. Also, you don't need a license to own more than one property. I think you may be mixing up the wholesaling laws with ownership laws?

Investing is not a panacea for all your issues, and it is only one piece of your total financial puzzle. I would start by looking inward. How did you end up in Chapter 13? You will need to handle a lot of cash as an investor, and you will need to be good at budgeting for reserves, CapEx projects, etc. You will also need to be able to balance a prudent amount of debt with the income from properties.

I would personally double down on your job and potentiality grab a side job. Get yourself back to a stable financial position and you will be able to pull through to the other side where real estate investing is a lot easier and more attainable. 

[Kyle Press]

Hello, I would like to say I’m not the most experienced at this, however I may bring something to the table as a newbie, so I’d say my statement has a fair weight to it as is: Beginning is extremely hard. Posting something on the internet and wanting something is extremely easy, however doing it requires dedication, persistence, all that. If you want to get into real estate investing I would purchase the book by Brandon Turner and treat it like a bible. Quote from it, study it, even give lectures to other people from it. I will say that anything worth doing, is worth planning for. Buying property is a huge decision especially when you’re putting everything you have into it, so you need to be sure you are accounting for everything, and planning well ahead of making a decision. Work on your finances, come up with a plan, and execute on it. Good luck 

[Paul De Luca]

@Richard Dunklin

I agree with @John Warren. Understand that you're not going to have overnight success with investing and be able to quit your job tomorrow. To climb out of your financial hole, you first need to stop digging. You're going to have to be financially disciplined by budgeting, saving money every month, and earn a consistent income. 

Read Set For Life by Scott Trench and apply what's in the book. Try to get a promotion at your job or consider job hopping to get a pay bump. Eliminate unnecessary spending and keep only the essential expenses. 

[Eudith Vacio]

Hey @Richard Dunklin - you've received some really good advice on here that might be hard to take in but I would definitely suggest that you get all of your ducks in a row, ensuring that your financial environment is conducive to real estate investing meaning, making sure you have the money reserved for a down payment plus any maintenance that needs to be done in the property. It can be very enticing to think of investing in real estate but there are also a lot of risks that need to planned for and assessed before beginning. And considering your bankruptcy, you may need to wait a few years..

[Aj Parikh]

Hi Richard, One of the easiest ways of scaling in real estate today is to invest in turnkey properties out of state. If you have a busy 9-5 routine but have the money to get started and don't have enough time, turnkey companies provide some of the best resources to scale your portfolio. I have used that strategy so feel free to reach out if you want to discuss.

[Richard Dunklin]

Thank you everyone for the advise that was giving,  I trying to get my finances in order, getting credit redone and not spending on things that I don't need.  It really hard right now for me because of the Chapter 13 and child support which eats up a third of my check.  I am even went as far as trying to work additional jobs to earn more money, but I be so exhausted and I getting burned out.

But I really appreciate all the advise from everyone.

[John Warren]

@Richard Dunklin I totally feel where you are at. When my wife and I paid off our student loans years ago, we made a game out of being cheap/frugal. That may be the way to do this for you. Find something inexpensive that brings you joy (pizza night, some cheap restaurant, whatever) and reward yourself if you hit metrics you create. This helped us pay off 49k in student loans in one year back when we made maybe 65k combined. It was insane, but is still one of the periods of our lives we remember most fondly. 

[Michael K.]

Quote from @Richard Dunklin:

Hi everyone 

I need some advise with getting into real estate.  I want to get into Realestate investing, I am tired of the 9 to 5 corporate job.  I have been to many seminars on the subject and been watching a lot of youtube. It's hard for me to get involved in with realestate because I am in a chapter 13 and don't have a money or savings for a deposit. I am studying for my license currently in the hope's of getting into investing and also chicago has the law were u can't buy more than one property at a time without having a realestate license.

Sounds like you have a complicated situation that is going to take a bit of time to work through. I do have a small suggestion on what you can start doing today. You mentioned child support payments. Not sure if your child lives with you or not on a regular basis, but rent hacking could be a good way for you to get started. Rent out a house in your name and then rent out the individual bedrooms to other people. You can get some landlord experience under your belt while also significantly reducing or eliminating your own rent payments. If you can do that you might have an easier time getting the rest of your finances in order. PM me if you need more advice. Good luck!

[Richard Dunklin]

John & Michael

I appreciate the advise, its being really hard for me.  Seems like nothing will ever get started with getting into Real Estate, I pretty sure you guys can relate.  But I am determined not to give up on my dreams, thanks again for the advise.

[Jeff Roth]

Hi Richard-

Great question and intention.

I would look for a local mentor at a local real estate investor group where you can attend meetings.

You want to find active buyers and help them find what they are looking for.

Build an active buyer email database with what each investor is looking for.

Your mentor can help you with how they usually find these opportunities and put your time to good use helping these experienced investors find the properties they are looking for then take the commission as an agent or a finders fee or assignment fee. Check with the rules in your area to be sure to follow how to structure being compensated for finding properties for other investors.

Then, buy something for yourself where you can rent out part of the space to offset the expenses as much as possible. Buy well so it will cashflow as a stand alone rental and after living there for a year or two go out and buy something similar.

Through consistent effort and networking you will be fine.

Happy to help!

[James Wise]

Quote from @Richard Dunklin:

Hi everyone 

I need some advise with getting into real estate.  I want to get into Realestate investing, I am tired of the 9 to 5 corporate job.  I have been to many seminars on the subject and been watching a lot of youtube.

It's hard for me to get involved in with realestate because I am in a chapter 13 and don't have a money or savings for a deposit.

I am studying for my license currently in the hope's of getting into investing and also chicago has the law were u can't buy more than one property at a time without having a realestate license.

I am looking at the BRRR method, storage facilities and other investments. My goal is to purchase a Multiplex and rent to section 8 and leave in one unit for a year.

Really would like to get started and have some advice on what direction to take

Welcome aboard Rich. BRRRR is a great way to help you scale as it allows you to recycle your money.