What should be my first step
Member since 2023 · 16 posts · 5 votes
What should be my first step
Most Popular Reply
New to Real Estate · Ogden, UT · Member since 2023 · 19 posts · 14 votes
3y@Guillermo Lithgow it sounds like we are at very similar places in our journeys. Some advice I have heard and been implementing all share with you and I hope it helps.
1. If you haven’t already work on your credit this can be one of the more time consuming steps and could affect your eligibility to obtain a loan.
2. Surround yourself with support and similar minded people. Going on this journey can be very difficult so find people who have your back.
3. Constantly learn. Read books, listen to podcasts and connect with veteran investors.
4. Practice identifying deals and see what opportunities and markets you can take advantage of when you’re ready to make the leap.
Best of luck on your investing journey.
34 Replies
- Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3y
@Guillermo Lithgow you are on the right path. Start the education process and learn the playing field. You can't make sound decisions if you don't know what the options are. Once you learn the field and options REI has you will be able to pick a strategy that fits your goals and abilities. You can always increase your abilities but it easier to grow your abilities on ones you already have.
Get after it way to go!
- New to Real Estate · Sunnyvale CA and Maplewood, NJ · Member since 2022 · 257 posts · 161 votes3y
If you want to stay local and house hack, I would spend the time first learning to analyze deals, then investigating towns and neighborhoods where the numbers seem like they might work better than where you are right now. Take day trips there and make a list of places you think you might be willing to live. This will help you hit the ground running later when you're eventually ready to start working with an agent and lender.
- New to Real Estate · Ogden, UT · Member since 2023 · 19 posts · 14 votes3y
@Guillermo Lithgow it sounds like we are at very similar places in our journeys. Some advice I have heard and been implementing all share with you and I hope it helps.
1. If you haven’t already work on your credit this can be one of the more time consuming steps and could affect your eligibility to obtain a loan.
2. Surround yourself with support and similar minded people. Going on this journey can be very difficult so find people who have your back.
3. Constantly learn. Read books, listen to podcasts and connect with veteran investors.
4. Practice identifying deals and see what opportunities and markets you can take advantage of when you’re ready to make the leap.
Best of luck on your investing journey.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Chris Davidson:
@Guillermo Lithgow you are on the right path. Start the education process and learn the playing field. You can't make sound decisions if you don't know what the options are. Once you learn the field and options REI has you will be able to pick a strategy that fits your goals and abilities. You can always increase your abilities but it easier to grow your abilities on ones you already have.
Get after it way to go!
Thank you so much for taking the time to answer, I will definitely keep educating myself if any books you may know that are good ever come to mind please do not hesitate to share!
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Nathan A.:
If you want to stay local and house hack, I would spend the time first learning to analyze deals, then investigating towns and neighborhoods where the numbers seem like they might work better than where you are right now. Take day trips there and make a list of places you think you might be willing to live. This will help you hit the ground running later when you're eventually ready to start working with an agent and lender.
Thank you so much for the advice! I will try to allocate some time coming up to try and drive around different locations in NJ to see what I find.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Cody Hawkins:
@Guillermo Lithgow it sounds like we are at very similar places in our journeys. Some advice I have heard and been implementing all share with you and I hope it helps.
1. If you haven’t already work on your credit this can be one of the more time consuming steps and could affect your eligibility to obtain a loan.
2. Surround yourself with support and similar minded people. Going on this journey can be very difficult so find people who have your back.
3. Constantly learn. Read books, listen to podcasts and connect with veteran investors.
4. Practice identifying deals and see what opportunities and markets you can take advantage of when you’re ready to make the leap.
Best of luck on your investing journey.
Thank you so much for the advice, you are definitely right about credit that a lot of people, myself included, always forget about but is very crucial to the RE process. I wish you well on the RE journey!
- Investor · DFW, TX · Member since 2022 · 198 posts · 161 votes3y
You mention that your area is pricey. If you plan on investing there, you’ll of course need to make sure your money is in order.
If you don’t plan on investing there due to the cost, learn the area where you want to target very, very well. Make many, many connections in that area, and get on the target city’s email list to stay updated on upcoming developments and improvement initiatives.
- 3yShawn McenteerBusiness MemberRealtor · Boonton Township, NJ · Member since 2013 · 2k+ posts · 1k+ votes
Hi @Guillermo Lithgow I run a few REI meetups in North Jersey, you are welcome to attend. Networking and meeting other investors is a great way to go when starting out. House Hacking is what got me and my wife to FI and is great strategy for NJ residents. Happy to chat with you more and help any way I can. DM for link to next meet up :)
House Hacking New Jersey563 Reviews - Real Estate Agent · NJ · Member since 2021 · 567 posts · 127 votes3y
I am an investor in Bergen county, there are areas outside Bergen that are mor affordable, best way to start is networking, there are many events I attend in that area. Great way to connect and learn!
- Member since 2023 · 16 posts · 5 votes3yThank you so much I am very interested!
Quote from @Shawn Mcenteer:
Hi @Guillermo Lithgow I run a few REI meetups in North Jersey, you are welcome to attend. Networking and meeting other investors is a great way to go when starting out. House Hacking is what got me and my wife to FI and is great strategy for NJ residents. Happy to chat with you more and help any way I can. DM for link to next meet up :)
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Jevon Shaw:
You mention that your area is pricey. If you plan on investing there, you’ll of course need to make sure your money is in order.
If you don’t plan on investing there due to the cost, learn the area where you want to target very, very well. Make many, many connections in that area, and get on the target city’s email list to stay updated on upcoming developments and improvement initiatives.
Thank you so much for the advice! I plan to continue saving.
- Member since 2020 · 132 posts · 90 votes3y
@Guillermo Lithgow - way to get started so young! So I would highly recommend at least having something to start building credit, maybe a small manageable credit card that you pay off every month - so that you can start hitting the agencies. I have so many younger tenants that can't buy homes because they don't have credit at all. Also, don't be scared of a pricey area, if it is too much, maybe move just outside of where you want to be to buy something that you would feel comfortable in living in. You can move into the area you want to be in with time. House hacking would be my most logical suggestion for you. You can house hack a room in a house, if you find one within range of your budget, or a multi family. House hacking every year, and moving every year and declaring that as your primary is a great way to add units to the portfolio without having to put 20% down each time. It's also easier to do when younger ;-)
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Kuriakos Mellos:
@Guillermo Lithgow - way to get started so young! So I would highly recommend at least having something to start building credit, maybe a small manageable credit card that you pay off every month - so that you can start hitting the agencies. I have so many younger tenants that can't buy homes because they don't have credit at all. Also, don't be scared of a pricey area, if it is too much, maybe move just outside of where you want to be to buy something that you would feel comfortable in living in. You can move into the area you want to be in with time. House hacking would be my most logical suggestion for you. You can house hack a room in a house, if you find one within range of your budget, or a multi family. House hacking every year, and moving every year and declaring that as your primary is a great way to add units to the portfolio without having to put 20% down each time. It's also easier to do when younger ;-)
Hello thank you for the great advice, I definitely have been looking into house hacking and I feel it might be my best route to start with.
- 3yTim DelaneyPro MemberBuffalo, NY · Member since 2018 · 790 posts · 530 votes
@Guillermo Lithgow congrats on getting started! I would attend as many local RE meetups as you can. And also dive deep into the idea of house hacking.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
Once you've identified potential areas to explore, it's time to start researching the local Real Estate market. This might include checking out home values, rental rates, and looking into vacancy rates. You should also speak with Real Estate agents in the area to get an idea of what types of houses are available in your price range. By doing this research and gaining a better understanding of the Real Estate market in that particular area, you'll be better prepared when it comes time to negotiate with sellers and lenders. Good luck!
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Tim Delaney:
@Guillermo Lithgow congrats on getting started! I would attend as many local RE meetups as you can. And also dive deep into the idea of house hacking.
Hello Tim and thank you for the response! I have signed up for my first meeting on the 28th and plan to continue learning and growing my knowledge. If there are any good questions you can suggest asking at these meet-ups or any books you yourself found helpful would be greatly appreciated.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Jay Thomas:
Once you've identified potential areas to explore, it's time to start researching the local Real Estate market. This might include checking out home values, rental rates, and looking into vacancy rates. You should also speak with Real Estate agents in the area to get an idea of what types of houses are available in your price range. By doing this research and gaining a better understanding of the Real Estate market in that particular area, you'll be better prepared when it comes time to negotiate with sellers and lenders. Good luck!
Hello, Jay thank you so much for the help! I plan on doing research in my area, what websites have you found most beneficial throughout your journey?
Thanks again,
Memo
- 3yTim DelaneyPro MemberBuffalo, NY · Member since 2018 · 790 posts · 530 votes
@Guillermo Lithgow I mostly listen to podcasts for education. But J Scott has a great book on estimating rehab costs if you are planning to use the BRRRR strategy. Dave Myers and J Scott also just released a book on the numbers of real estate that I have but have not read yet.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Tim Delaney:
@Guillermo Lithgow I mostly listen to podcasts for education. But J Scott has a great book on estimating rehab costs if you are planning to use the BRRRR strategy. Dave Myers and J Scott also just released a book on the numbers of real estate that I have but have not read yet.
I see, thank you for the suggestion!
- Realtor · Owensboro, KY · Member since 2018 · 33 posts · 22 votes3y
@Guillermo Lithgow start by reading and listening to podcasts. I started by selling my house and buying a duplex and househacking it.
- Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes3y
Quote from @Guillermo Lithgow:
Quote from @Tim Delaney:
@Guillermo Lithgow I mostly listen to podcasts for education. But J Scott has a great book on estimating rehab costs if you are planning to use the BRRRR strategy. Dave Myers and J Scott also just released a book on the numbers of real estate that I have but have not read yet.
I see, thank you for the suggestion!
Sure you can see all the BP books here, and that is a great place to start, but if you are looking for some different ones. What Every Real Estate Investor Needs to know about cash flow... and 36 other key Financial Measures; This book is short and to the point if you want to learn numbers. If you want to learn Legal/ business side, grab a nolo guide or go to a book store and flip through one. You will see it's not as complicated as people make it out to be, but there are things that need to be done. Importantly I would recommend before reading any book on theories/ how to invest, check the copyright date/ publish date and get an understanding of what the economy was like then. If you want a different one; one 52 Homes in 52 weeks; is a good sub-to/ lease option book and motivated me.
Best of luck and enjoy the grind so you can enjoy the deals.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Ethan Board:
@Guillermo Lithgow start by reading and listening to podcasts. I started by selling my house and buying a duplex and househacking it.
Thank you for the advice I plan to continue educating myself on RE.
- Member since 2023 · 16 posts · 5 votes3y
Quote from @Chris Davidson:
Quote from @Guillermo Lithgow:
Quote from @Tim Delaney:
@Guillermo Lithgow I mostly listen to podcasts for education. But J Scott has a great book on estimating rehab costs if you are planning to use the BRRRR strategy. Dave Myers and J Scott also just released a book on the numbers of real estate that I have but have not read yet.
I see, thank you for the suggestion!
Sure you can see all the BP books here, and that is a great place to start, but if you are looking for some different ones. What Every Real Estate Investor Needs to know about cash flow... and 36 other key Financial Measures; This book is short and to the point if you want to learn numbers. If you want to learn Legal/ business side, grab a nolo guide or go to a book store and flip through one. You will see it's not as complicated as people make it out to be, but there are things that need to be done. Importantly I would recommend before reading any book on theories/ how to invest, check the copyright date/ publish date and get an understanding of what the economy was like then. If you want a different one; one 52 Homes in 52 weeks; is a good sub-to/ lease option book and motivated me.
Best of luck and enjoy the grind so you can enjoy the deals.
Thank you for the helpful tips I will be sure to add 52 Homes in 52 Weeks.
- 3yAshwin AbichandaniPro MemberReal Estate Agent · Chicago · Member since 2020 · 23 posts · 20 votes
@Guillermo Lithgow first congratulation for taking the right first step which is to be on Bigger Pocket. As you can see you are already got a lot of advice.
I would suggest focusing on Networking, as you begin to understand the housing market, different RE strategies, and your strengths and weaknesses.
Through networking, you can connect with the right people to help you overcome your weakness, obstacles, and questions.
You can start networking through meetups, Facebook groups, and Local REIA chapters.
- Property Manager · Watertown, NY · Member since 2021 · 141 posts · 78 votes3y
Quote from @Guillermo Lithgow:
Hello, my name is Guillermo Lithgow but everyone calls me memo, I am 23 years old and am very interested in getting into real estate investing, I currently reside in New Jersey within Bergen county, and houses can be very pricey here, especially starting out. My girlfriend is due to graduate in May and we are looking to buy our first property this year. I am currently saving up money and trying to read as many BP books as possible, but I wanted to know if there was any advice people had as to what I can do now to still work towards the goal.
Any and all advice is greatly appreciated.
Hi Memo! One piece of advice I'd offer is this: get out and start looking at properties. Begin understanding what's available at the various price ranges. If you can find an "investor friendly" realtor that would be willing to work with you knowing that you're not buying right this minute, that would be helpful. Be honest with them that you're just starting out and some will be understanding.
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