Mentorship/Advice needed, have a solid amount of start up cash but no experience
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Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
3yContrary to popular believe, investing in real estate is not rocket science. Best advice I can give you after 15 years of investing is lower your expectations for your first deal. It's very easy to fall into the perpetual cycle of "but is it good enough?" questions when you look at investment opportunities.
Instead, just buy the best deal you can in the next couple months. If you want to learn how to swim, you can read books, watch video and have a 3 mentors: at some point you just have to get in the water.
Buy a quality property (you will never regret buying too MUCH quality; many have regretted the opposite) and as long you have positive gross cash flow the rest will take care of itself with time. You don't need to make a killer return on your first deal, that will come later, you just have to get started.
Also, only rookies try to time the market and it never works, because either they think the market is too hot and will crash soon, or they think it's too scary, because the market is depressed. Building a portfolio means that you are always buying. If you don't buy a property every let's say 3 months you'll never have a portfolio.
Is it possible that FL prices are lower a year from now? Yes. But does that matter, when you are buying a long term hold portfolio. Absolutely not. And maybe prices don't come down, will you be waiting until they do? And how much? Long term real estate prices always go up, because the dollar we measure against is loosing value with inflation. Normally 2-3%, at the moment a bit more. So even if prices flatline, in reality that means they are going down.
Just get started.
34 Replies
- 3yJoe VilleneuvePro MemberPlymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
This is the place to come for everything you listed. Where do you want to start?
How do I find properties? I'm looking for single family or multi-family properties in Florida, no condos or townhomes or really anything with a high HOA. I'm looking at zillow, realtor, as well as sites like roofstock. I guess just due to inexperience I'm having a really hard time finding something where I come out in the positive.
- Real Estate Agent · NJ · Member since 2021 · 570 posts · 127 votes3y
Always start with networking, there are investors with deals looking for capital, if the deal is good you can do a JV (joint venture), that's how I got my first deal done!
- 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
go to lots of REIA meetings and network, network, network
- Investor · Charleston, SC · Member since 2011 · 606 posts · 413 votes3y
My suggestion would be to decide if you want to be more active investor or passive investor. With the salary listed you probably have a good job that demands quite a bit of your time and from the surface I can imagine that you would want to be doing super active real estate like fix and flips and doing all the marketing necessary to find good creative deals. Personally, I would take the capital you have and buy a few performing notes (mortgage or deed of trust notes) which have some upfront due diligence but are pretty passive if using a service to collect payments, etc. Then as you get more comfortable you can maybe get into the more complex world of non-performing notes which is a full time job. Of course another option is to invest in a single family rental property but the numbers are hard to pencil out these days and better to look into a syndication which is again more passive.
- 3yAdam BartomeoBusiness MemberReal Estate Broker · Cape Coral, FL · Member since 2015 · 2k+ posts · 1k+ votes
In mentorship you normally have to bring something to the table as a trade off. It seems like you are bringing some capital but not all of it. So, the question would be, what else are you bringing, and what are you willing to trade for that mentor to give up their valuable time and knowledge? Brining a "deal" is often the most enticing.
Bartomeo Property Management4.7150 Reviews - Investor · Carolina · Member since 2021 · 78 posts · 44 votes3y
I was once in your shoes and totally understand.. oh, it’s hard to make a move when you don’t feel like you have a confidence and get a lot of conflicting viewpoints and opinions on these forms in podcasts.
As someone who is now in the position to be a mentor (and am one) I can tell you that it has to be worth my time. I will guide and give advice to friends and family who know what I do but beyond that unless there’s something in it for me, it’s just not worth the time to genuinely invest into you without some form of reciprocation - which for me is money. Perhaps this is obvious but just stating in case.
given that you and your husband are likely smart and high income earning individuals, you probably understand that. I found my mentor through a property that I bought. He essentially opened my eyes to his strategy, and it changed my life. I replicated what he did, and now I am in his position six years later. My form of compensation to him was always using him as my agent moving forward, which ended up making him tens of thousands of dollars and commissions. We are now good friends and I don’t need to pay him anymore.
What I would recommend is - if you are truly ready to take the next step , invest in a mentor somehow. You are not going to get good information That is free. It’s just a reality.
Find someone who is doing what you want to do and ask them if they do coaching or mentorships. I would not necessarily recommend one of these online courses. Those just cost a lot of money, and typically are pretty generic.
Just my 2 cents! DM me if you were interested to learn about what I offer. I try to make it as a reasonable and high value as possible.
- Member since 2022 · 77 posts · 47 votes3y
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
Reading all the comments I'm seeing allot of good advice and perspectives. I personally just finished listening to one of the more recent BP episodes of seeing green where David addresses a very similar topic to yours. A subscriber wrote in about making the leap from contractor to investor. In one realm they are a black belt and the other, a complete newbie. Thats the reality, you gotta put in the work, plant the seeds, and be patient. You're both very established in your careers but in real estate, you are at square one. You're getting ready to open up a whole new chapter in life. I agree with @Scooter Williams it would be worth while and show real commitment to find a mentor and compensate them in some way. An 80-20 relationship of sorts where you both put in 80 percent and they in put in 20. Just thinking out loud.
- Investor · Durham, NC · Member since 2020 · 1k+ posts · 691 votes3y
Hey Sandra!
Sounds like you're on the right track! I'd start out by determining what kind of real estate you want to invest in. The best way to expose yourself to all of the options out there is podcasts, but here are some common ones:
Single family - flipping, rentals, short-term rentals (AirB&B)
Industrial and triple net leases
Multifamily - apartment syndication for larger properties
Storage units
Also, if you're interested in being an active investor (doing your own deals as an operator), or being a passive investor is really important to understand!
It seems like you're also looking for mentorship. As mentioned by others, BP is a great resource! If you're looking for more hands-on mentorship, I'd encourage you to get out there and network! There are plenty of people here on this platform that offer mentorship or are part of a mentorship program currently. You can also attend conferences in person to meet other investors and explore mentorship options.
My brothers and I actually found our current mentorship program here on Biggerpockets! We're in Think Multifamily, which is specifically an apartment syndication mentorship program. They're having a conference called the Deal Analysis Workshop in April too if you're interested in learning about multifamily investing, mentorship, or just meeting other investors. https://thinkmultifamily.com/d...
Hope that helps!
- 3yAlexandra Hughes PailetPro Member🎉 Director of Events at BiggerPockets · Denver, CO · Member since 2016 · 430 posts · 438 votes
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
Hey Sandra!
The 2023 BiggerPockets Conference is in Orlando this year! Early bird registration opens on March 15th and we'd love to see you there!
You can check out more information at BiggerPockets.com/conference
- 3yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
@Sandra B. You are not alone with not knowing where to start, believe me, I've seen hundreds try to find answers and either give up or spend thousands on courses that don't really give them any tangible advice.
There are ways to make your money work for you while you figure it out. You could be a private money lender and get 10-14% on your money lending to flippers. While that is working, you need to figure out what lane you want to be in.
To name a few, wholesaling, flipping, tax deeds, long term rentals, short term rentals, note buying, private money lender, buying for cash flow, buying for appreciation, mobile homes, self storage, multi-family...and so on. Once you find something that interests you, you understand and fits in your ability to spend time educating yourself on and have time to dedicate to, then you focus your time on that. Many start out owning single family homes, graduate to multi family and then apartments, shopping plazas, self storage etc. If you plan on keeping your W-2 jobs, something passive would be good and it doesn't sound like you need the cash flow right away, so start buying for appreciation while you learn.
I'd be happy to meet up (I'm in Orlando) and go over some options or have a call. I would also suggest joining our local REIA, Central Florida Realty Investors (CFRI), you will meet all types of local investors to network and find mentorship also.
Best of luck!
- Member since 2016 · 45 posts · 38 votes3y
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind.
this is FOMO - do not succumb!
what's to miss out on in a declining market?
if you have questions as whether this mkt is actually declining, check out calculatedriskblog.com. - or read up on the macro data...
"The numbers do not lie, but we often lie to ourselves." (Me - just now.)
Bill McBride has correctly called the last few tops and bottoms, and he is quite data-based, and accurate.
Notably, he is not a participant on this forum, or any other! He reads the macro data and acts - and writes - accordingly.
All of that being said...
What is the reason all of your current property investigations end up in the negative?
The same reason that the market is stuck right now.
Which begs the impertinent question of...
"Why do you seek to invest in a market that is clearly declining?"This is an excellent place to start - examining your assumptions, perceptions, biases and fear.
If we can not see the target clearly, we can not acquire it.
Go to SCORE, run by the SBA - these advisors will tell you the same thing, and also challenge your assumptions.
This is not easy to hear this at first.
But... it is much easier than reading a future financial statement that Impassionately documents your flight of capitol.
Sit back, release the FOMO (sometimes the hardest part), complete your self-education (far apart from BP and like forums, lol), make your plan and stick with it.
Don't believe me?
It's cool - I don't care... it's not my money!
But - do get a consult with a high net worth real estate CPA who is a RE investor with many years in the game.
Then all will be clear.
All the best!
- 3yRaymond J. RodriguesBusiness MemberLender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
@Sandra B., if you’re willing to venture out to the Tampa Bay Area, I’m sure @Josh Green can assist you in finding some properties that be worth your while.
Helm Mortgage Corp.5126 Reviews As much as I love real estate, if I was bringing in 400k-600k annually, I'd just throw it all into ETFs if I were just looking for a way to replace my W2! Less of a headache for a hell of a return with those kinds of numbers, lol.
You're looking in the right place as Florida is the fastest growing state. I agree with going to networking events and finding out what people are doing in the local market. If your focus is residential I would consider working with a wholesaler to find you deals. You can either flip it or hold onto it for cash flow. This is assuming that you are interested in being an active investor with your $200K.
- Well 1st stop reading books and watching videos as you see that really does not get you anywhere. All you need to do is connect with those that provide rentals, 100% hands off with 10% or better net caps. You will learn more in a week then 5 months reading books.
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
All the best Quote from @John M.:
You're looking in the right place as Florida is the fastest growing state. I agree with going to networking events and finding out what people are doing in the local market. If your focus is residential I would consider working with a wholesaler to find you deals. You can either flip it or hold onto it for cash flow. This is assuming that you are interested in being an active investor with your $200K.
Fl is still overpriced, I see a correction coming. I just last week I moved to PSL. I will not buy unless I can get the property for about 20% below ask, I am in no rush. I see props on the market longer than they were 6, months - a year ago. Rentals for investment, nope, really not anything for more than 5-6% net. I have been looking from Vero down to Jupiter and over on the west coast from Cape Coral up to Tarpan Springs. I will stick with Cleveland with the 15%- 20% net caps or better.
All the best
- Realtor · Greater Tampa Bay · Member since 2014 · 219 posts · 130 votes3y
@Sandra B. In Tampa Bay - SFR nearly all end up negative right now without putting more down or buying down interest rate. MFR is going the same direction, but is much better right now than SFR due to how rents on the lower end have increased faster than your typical 3/2 SFR. Because Tampa has shifted to a more appreciation vs hybrid cashflow investment area, you'll need to be comfortable with putting more down on your investments or letting them sit slightly negative/breakeven for a couple years while rents increase further.
- 3yFrank MongielloBusiness MemberReal Estate Agent · West Palm Beach · Member since 2020 · 41 posts · 38 votes
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
I came across a 1% deal yesterday in the Palm Beach market which is known for terrible cash flow. Deals are still out there you just have to work really hard to find them. Sounds like you have capital but lack the time to look at all the properties available. I would find a really good investor friendly agent in your market or maybe a young hungry kid who can look at on market properties, reach out to wholesalers, and do a little driving for dollars and you JV on the deal. There's a great multi family networking group once a month in Cocoa Beach you should look into to build your local network and see where the local guys are making moves.
- Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes3y
Contrary to popular believe, investing in real estate is not rocket science. Best advice I can give you after 15 years of investing is lower your expectations for your first deal. It's very easy to fall into the perpetual cycle of "but is it good enough?" questions when you look at investment opportunities.
Instead, just buy the best deal you can in the next couple months. If you want to learn how to swim, you can read books, watch video and have a 3 mentors: at some point you just have to get in the water.
Buy a quality property (you will never regret buying too MUCH quality; many have regretted the opposite) and as long you have positive gross cash flow the rest will take care of itself with time. You don't need to make a killer return on your first deal, that will come later, you just have to get started.
Also, only rookies try to time the market and it never works, because either they think the market is too hot and will crash soon, or they think it's too scary, because the market is depressed. Building a portfolio means that you are always buying. If you don't buy a property every let's say 3 months you'll never have a portfolio.
Is it possible that FL prices are lower a year from now? Yes. But does that matter, when you are buying a long term hold portfolio. Absolutely not. And maybe prices don't come down, will you be waiting until they do? And how much? Long term real estate prices always go up, because the dollar we measure against is loosing value with inflation. Normally 2-3%, at the moment a bit more. So even if prices flatline, in reality that means they are going down.
Just get started.
- Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes3y
The first question to ask yourself is how involved do you want to be in your real estate portfolio?
If you are looking to solo invest/active invest. You need to familiarize yourself with the underwriting to know what a good deal is. Defining with markets you want to invest in and setting up a PM team is also essential.
There are also other options to invest passively through syndications. This is a true form of passive investing. If you go this route, I suggest connecting with a few different syndicators to figure out which one you like the best.
- 3yGino BarbaroPro MemberRental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
I would start out by going to meet ups in Orlando. All different types, single family, multifamily
Find what niche of real estate resonates with you, and focus on that niche. With your income, and the money you've saved, you need to ask yourself how much time do you have to dedicate to building your real estate business.
When I started, i chose multifamily because it was easier to manage tenants than it was to try to buy a home, rehab it and flip it. I already had a demanding business. As I bought more deals, I was able to leave my business and focus on real estate full time.
Good luck
Gino
- Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 754 posts · 504 votes3yHi Sandra!
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
Exciting stuff. Sounds like you and your husband are actually... ready!
Like many others on BP, I own a bunch of property and have many years experience in real estate investment.
My best advice is actually NOT to try to initially become an expert. Use experts for their expertise. I recommend you actually focus on partnering with a well seasoned investment specialized real estate agent in the market where you will likely purchase. Let that person help form the rest of the team- an amazing competitive lender + a property manager, and of course contractor, furnishing options, and anything else you need.An experienced and savvy agent 100% will run numbers for you and lay out the red carpet so you have an easy path to profits and success. They should not only be able to form your team, but identify several properties, run all the numbers, and line up everything so that you close escrow, have contractors lined up (if needed) to get started, a furnishing solution in place, and then transition ASAP to a property manager so it hits the rental market and you start seeing your profits.
- Member since 2022 · 1 post · 1 vote3y
Hello!
I am a Realtor who is looking for investment property in California. What I have learned and confirmed after looking for 5 years and now regretting not buying something sooner... Areas in California and Florida don't start with a cash flow.. Listen to this podcast! Pooja explains how she calculates investments in Southern California. She starts off at a loss... https://www.biggerpockets.com/...
Sincerely,
Michelle
- Lender · San Clemente, CA · Member since 2017 · 77 posts · 35 votes3yYou are in a very enviable position, Sandra, I love helping new investors navigate through the myriad of opportunities. I have owned residential rental properties for years and with the help of BP moved my equity into a very lucrative office building in Cordova Tennessee. I studied demographics, cash flows, job stability, poured over proformas, did the math and settled on my building. It wasn't a big risk as I only invested $200k with a 12 Cap rate. If you would like more details please reply. My "real" job is mortgage financing. If you would like more details please reply.
Quote from @Sandra B.:
My husband and I are really interested in getting into real estate, every year that passes without us acquiring a property feels like we're falling behind. We're financially very stable, we bring in 400-600k annually on average and also have about $200k in cash. Eventually we would like real estate to be our primary income but as of now we don't even know where to start. We've read books, searched through forums, watched videos, but every property I've found the numbers end up in the negative. I'm not looking for crazy cash flow but definitely not negative. We would love some hands on mentorship or really just advice from this forum. Thank you!
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