22 y/o aspiring to start Buy & Hold REI
Member since 2022 · 3 posts · 3 votes
22 y/o aspiring to start Buy & Hold REI
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Isaac Yoshioka:
You should always network, whether you are three years from investing or three years after buying your 20th property.
Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.
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.
The DIY Landlord Book4.7243 Reviews
7 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Isaac Yoshioka:
You should always network, whether you are three years from investing or three years after buying your 20th property.
Go to NETWORK at the top of your screen and you can search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area.
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.
The DIY Landlord Book4.7243 Reviews - Real Estate Coach · Boise, ID · Member since 2022 · 177 posts · 285 votes3y
@Nathan Gesner knocked it out of the park. Not much more to add to this, Maybe just find a mentor. It's always better to learn through someone else's mistakes before you make them yourself.
- Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes3y
Quote from @Isaac Yoshioka:
Hey everybody!
I'm 22 and have been very interested in starting REI specifically Buy & Hold real estate. I have been studying for several months and have saved up around $20k for investment purposes. As I still have many questions on how to start I would like advice on where to start exactly.
My plan so far is to invest out of state and have a whole team out there.
So I guess my big thing is do I just have to start networking at this point? Finding my team out in the area I would like to start investing in? I am open to listening to all advice that comes my way ! Thank you to everyone who has read all the way though.
-Isaac
Hey Isaac, I'd choose the in-state option for starters as provided that you can get a great deal and if it's affordable. If that's not an option, then investing OOS is the way to go. Get as much information as you can on that market. Find a local and professional project manager, build a reliable team from real estate agent to lenders and contractors. OOS investing has some risks since you're mostly not gonna be there but you'd be able to lessen it. The key is to make sure that you have a system in place.
You can learn more from this link here: https://www.biggerpockets.com/...
Try to attend your local REI networking groups and meetups. Connect with as many real estate mentors as you can. It's best to learn and hear from the people who have already done it. - 3yRiver SavaPro MemberLender · USA · Member since 2022 · 1k+ posts · 1k+ votes
Hey Issac!
Wonderful that you are looking to buy and holds. Curious where you want to invest out of state and if you have thought about different means of financing. Would love to chat more about this with you and offer help where I can!
- Real Estate Agent · Member since 2019 · 143 posts · 74 votes3y
Nice move Isaac! My advice would be for you to :
Find a mentor you can trust. I can't stress enough how important it is to find a mentor in this industry. Having a mentor when I first got started in real estate was key to my growth. Utilizing the benefit of someone else's experience greatly reduces your learning curve.
Define your goals. I think it's safe to say we all get into real estate investing at least in part for the freedom it can provide. But what does that look like for you? How large or small of an organization do you want to build? What is the end goal you are hoping to achieve? Real estate is often just the vehicle to get us to a bigger life goal, so make sure you are casting a vision for your company (or yourself) that aligns with your goals.
Hope this helps you! Good luck on your future endevours! - Lender · Austin, TX · Member since 2022 · 223 posts · 244 votes3y
As iterated on many of the bigger pockets podcasts, begin networking and look to find your "core 4"!
Real estate is as much of a relationship business as it is a numbers one, and having a team of solid individuals with you can greatly mitigate any growing pains and shorten the learning curve! - Member since 2022 · 3 posts · 3 votes3y
Quote from @River Sava:
Hey Issac!
Wonderful that you are looking to buy and holds. Curious where you want to invest out of state and if you have thought about different means of financing. Would love to chat more about this with you and offer help where I can!
Oh sweet! Thank you, I am planning to invest out in the Mid West somewhere (no exact location set at the moment) and I haven’t looked too much in to lending. If I remember right most lenders require at least a 15% down for a investment property but that’s all I know right now.
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