Skip to content
Starting Out

User Stats

2
Posts
7
Votes
Colton King
7
Votes |
2
Posts

Steps to getting started

Colton King
Posted Oct 25 2022, 16:13

Hello everyone I'm a new aspiring RE investor and I am just trying to get some opinions from everyone on what a good starting checklist to getting started would be. I am working on building my credit because I used to be really bad at letting things go to collections however I never really had a good paying job until now and my credit score has risen 50 point in just a few months. I would love to start learning from someone who has experience who wouldn't mind taking someone under their wing. I am willing to prove myself but I can only learn so much by reading books and listening to podcasts I learn much more by doing. I however just have no idea on how to even begin, especially living in such an expensive market such a Denver. Any suggestions or tips would be greatly appreciated.

User Stats

24,956
Posts
37,117
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
37,117
Votes |
24,956
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Oct 26 2022, 05:07
Quote from @Colton King:

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.

  • Property Manager Wyoming (#12599)

American West Realty & Management Logo

User Stats

1,372
Posts
1,154
Votes
Allan Smith
  • Developer
  • Nashville, TN
1,154
Votes |
1,372
Posts
Allan Smith
  • Developer
  • Nashville, TN
Replied Oct 26 2022, 05:11

It's best to find a local mentor. As they say, find a way to add value, which probably means working for free. Remember that working for free sounds like a lot of value you are giving away, but in fact they will likely have to train you to get specific results. So the easier you can make it for them the better. Use skills you already have so they don't have to look over your shoulder at all.

without a doubt your first step should be a brainstorm session on your Why and goals. Especially goals. Nobody can help you if you don't know where you want to go to.

you'll also get a lot more forward progress and help from people when it's clear what you want from them. For example, if you want to flip houses to make a bunch of money so that you can buy nice cars and toys, then you might be asking questions like how to calculate arv or repairs. If your goals were Financial independence, then your questions will be about rentals. 


You can ask specific questions and people can help you along the way.

Steadily logo
Steadily
|
Sponsored
America’s best-rated landlord insurance nationwide Quotes online in minutes. Single-family, fix n’ flips, short-term rentals, and more. Great prices.

User Stats

1,503
Posts
1,156
Votes
Nate Sanow
Pro Member
  • I​nvestor & Agent
  • Tulsa, OK
1,156
Votes |
1,503
Posts
Nate Sanow
Pro Member
  • I​nvestor & Agent
  • Tulsa, OK
Replied Oct 26 2022, 05:17

Find a way to be around a high volume amount of real estate transactions. After awhile it’s like being a cashier at a grocery store. If possible find a side hustle real estate related. Could be wholesale could be as simple as helping flippers clean up trash. 

User Stats

93
Posts
210
Votes
Ryan Williams
  • Real Estate Broker
  • Denver
210
Votes |
93
Posts
Ryan Williams
  • Real Estate Broker
  • Denver
Replied Oct 26 2022, 08:14

@Colton King house hacking is the best way to get started in RE Investing in my opinion. It is one of the least risky ways to get your first property. You get landlord experience, you learn how to run numbers, you learn to maximize a property. It was a huge catalyst in our investment journey because it paid the mortgage for us and allowed us to save towards other goals. I'll send you a dm, I'm happy to help share our experience! 

Also, here is a blog I wrote for Bigger Pockets about house hacking, I hope it's helpful!

  • Real Estate Agent CO (#FA100094785)

R&R Real Estate Services LLC Logo

User Stats

5
Posts
0
Votes
Brandon Herman
  • Real Estate Agent
  • Denver, CO
0
Votes |
5
Posts
Brandon Herman
  • Real Estate Agent
  • Denver, CO
Replied Oct 26 2022, 12:38

I messaged you, Colton!

User Stats

78
Posts
104
Votes
Joe Garretson
  • Investor
  • Castle Rock, CO
104
Votes |
78
Posts
Joe Garretson
  • Investor
  • Castle Rock, CO
Replied Oct 27 2022, 06:58
Quote from @Nathan Gesner:
Quote from @Colton King:

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.


Probably the best advice ever. It's amazing how many people don't want to clean up the mess in their own yard. I speak this from firsthand knowledge as I'd created quite a mess in my own yard from '16-'18 and am now in a great position to start investing. 

User Stats

951
Posts
597
Votes
Kiera Underwood
  • Specialist
  • Oklahoma City, OK
597
Votes |
951
Posts
Kiera Underwood
  • Specialist
  • Oklahoma City, OK
Replied Oct 29 2022, 12:44
Quote from @Nate Sanow:

Find a way to be around a high volume amount of real estate transactions. After awhile it’s like being a cashier at a grocery store. If possible find a side hustle real estate related. Could be wholesale could be as simple as helping flippers clean up trash. 

@Colton King this is great advice! This step is what shifted me from "considering investing" to being a part of hundreds of transactions a year. I work with a full-service team that does a lot of hand-holding for people that are just getting started. If you want an overview of what getting started in Oklahoma City looks like I'm happy to do that for you! I think it's helpful to compare markets and providers to get a good feel for what's out there. Because you're just building credit, starting in a lower-cost market may be important to starting sooner.

User Stats

53
Posts
54
Votes
Landon Whitt
  • Property Manager
  • Oklahoma city
54
Votes |
53
Posts
Landon Whitt
  • Property Manager
  • Oklahoma city
Replied Oct 29 2022, 14:04

@Colton King How about starting with this 

1. see if you can get a pre-qualification letter for a mortgage. (they are good for 90 days) If they say no they will tell you why not and you can work on that. 

2. Once you know what you qualify for I would try house hacking a duplex or similar setup. It's a great way to start your portfolio with low risk and get alot of practical experience your looking for. 

User Stats

221
Posts
98
Votes
Cliff Benner
Tax & Financial Services
Pro Member
  • Accountant
  • Denver, CO
98
Votes |
221
Posts
Cliff Benner
Tax & Financial Services
Pro Member
  • Accountant
  • Denver, CO
Replied Nov 1 2022, 10:41

@Colton King I have a small Mastermind group here in Denver if you, or anyone who reads this, would be interested in attending a meeting let me know and I will send you the location and time.

We have a small group but everyone has their own strategies and different experiences that we leverage off each other.

Its been a blast to have them and we have developed good friendships over time too. 

User Stats

304
Posts
343
Votes
Shiela R.
  • Investor
  • Boulder, CO
343
Votes |
304
Posts
Shiela R.
  • Investor
  • Boulder, CO
Replied Nov 1 2022, 12:05

Hi @Colton King. Some great suggestions here.  You've probably realized that investing in RE is super personal.  There is a wealth of knowledge here in BP.  Search and do a deep dive of what looks interesting or appealing to you.  Set goals. At the same time, get you finances in order and look for a real estate related side hustle. YOu can learn a lot by just being a fly on the wall. :)

User Stats

1,407
Posts
788
Votes
Aj Parikh
Pro Member
  • Rental Property Investor
  • Centreville, VA
788
Votes |
1,407
Posts
Aj Parikh
Pro Member
  • Rental Property Investor
  • Centreville, VA
Replied Nov 2 2022, 10:58

Hi Colton, 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.


User Stats

19
Posts
16
Votes
Tom McDermott
  • New to Real Estate
  • Littleton, CO
16
Votes |
19
Posts
Tom McDermott
  • New to Real Estate
  • Littleton, CO
Replied Nov 9 2022, 06:53
Quote from @Ryan Williams:

@Colton King house hacking is the best way to get started in RE Investing in my opinion. It is one of the least risky ways to get your first property. You get landlord experience, you learn how to run numbers, you learn to maximize a property. It was a huge catalyst in our investment journey because it paid the mortgage for us and allowed us to save towards other goals. I'll send you a dm, I'm happy to help share our experience! 

Also, here is a blog I wrote for Bigger Pockets about house hacking, I hope it's helpful!

 
@Colton King, everyone makes mistakes. Be humble, admit it and learn from it. If traditional housing hacking is not a an option today, consider David Greene's strategy of "reserve house hacking". Cut you expenses by being the renter of a room in a house hack that is cheaper than renting your own apartment. @Scott Trench's book Set for Life is a great place to start, I highly recommend it. It will provide you the information to turn around your situation, you just need to be ready for it and commit to the process. Tactics with the correct mind set will lead to the results you want over time.

Tom

FlipSystem logo
FlipSystem
|
Sponsored
Learn From Our Team. Earn 100% of the Profits. Join our community of 500+ investors! Avg profit per flip: $14k, Avg effort per week: 4hrs

User Stats

2,355
Posts
4,705
Votes
Scott Trench
Pro Member
  • President of BiggerPockets
  • Denver, CO
4,705
Votes |
2,355
Posts
Scott Trench
Pro Member
  • President of BiggerPockets
  • Denver, CO
Replied Nov 9 2022, 08:39

@Colton King Asking questions and admitting that you don't know what you don't know is a great first step! If you do decide that Set for Life might be a good idea, feel free to swing by our office sometime and I'll give you a copy. Best of luck on your journey to financial freedom! 

User Stats

9,861
Posts
5,503
Votes
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
5,503
Votes |
9,861
Posts
Eliott Elias#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
  • Investor
  • Austin, TX
Replied Nov 9 2022, 22:15

TAKE ACTION