How to become a Real Estate Investor.
Rental Property Investor · California, CA · Member since 2022 · 17 posts · 11 votes
How to become a Real Estate Investor.
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Kermaury Musgrove:
I read some books, listened to podcasts, spent a little time actually thinking about how I would approach it, created a very simple plan and a budget, then told everyone and their brother what I was looking for. Someone told me about an opportunity about four months later, I bought it, and I figured the rest out as I went.
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 Book4.7248 Reviews
5 Replies
- Real Estate Broker · Palm Coast, FL · Member since 2023 · 23 posts · 10 votes3y
Hello @Kermaury! My recommendation for anyone who is looking to get started is to start educating yourself and bigger pockets is a great place to start!
I think to get a full understanding of what is takes I always like to see people start picking properties and running some calculators so you get comfortable with that. You can't analyze enough properties when you are first starting out. Second I would think about what types of investments you are looking at and start evaluating what would or would not work for you and analyzing those deals helps with that a ton!
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Kermaury Musgrove:
I read some books, listened to podcasts, spent a little time actually thinking about how I would approach it, created a very simple plan and a budget, then told everyone and their brother what I was looking for. Someone told me about an opportunity about four months later, I bought it, and I figured the rest out as I went.
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 Book4.7248 Reviews - Real Estate Agent · Member since 2018 · 459 posts · 414 votes3yI bought a house 🤣
Quote from @Kermaury Musgrove:
How to become a Real Estate Investor,
What did you all do, those that are Investors; (buying and selling houses) do to get started?
But in all seriousness, buying and going through your first investment was like drinking out of a fire hose! You learn so much! If I were you getting started:
1. Find any and all local REI groups and attend them religiously. Talk to as many people as possible! Network is key.
2. There are some good books out there. Starters include Rich Dad Poor Dad & The BRRRR Book by David Greene.
3. Write out your goals. What do you want to be doing in 10 years? Why do you want to do Real Estate? How will Real Estate help you get to your goal? Take those goals and work backwards each step until you get to today. That’ll help you make a roadmap to your 10 year plan and identify your most important next step.
At the very least, talk to a local lender that invests and have them review your financials. They’ll tell you where to improve your application for preapproval for when you’re ready to buy to improve your approval amount and they’ll help you connect with an agent.
And finally, ask all your questions here at BP! - 3yMackaylee BeachPro MemberReal Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 492 votes
Don't rush - take the time to educate yourself.
BP has lots of helpful tools.
- Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes3y
Quote from @Kermaury Musgrove:
How to become a Real Estate Investor,
What did you all do, those that are Investors; (buying and selling houses) do to get started?
House hacking is the best way to start! You need a place to live so might as well get income while living there.
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