New and unsure
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
The only 2 options I see with no capital is seller financing or partnering on a deal. What is the plan with the house you are buying? If you have a 2 year plan stick to that. During the 2 years focus on learning and building a strong foundation. Also save extra $$, you need cushion and reserves. Sometimes you have to be a little patient.
Quote from @Caleb Brown:
The only 2 options I see with no capital is seller financing or partnering on a deal. What is the plan with the house you are buying? If you have a 2 year plan stick to that. During the 2 years focus on learning and building a strong foundation. Also save extra $$, you need cushion and reserves. Sometimes you have to be a little patient.
We’re doing a live in flip. Primarily with sweat-equity but it’s very doable and I’m confident in its return potential. I plan on using this deal to fund future plans but I’d love to be able to do more during this time, as this house won’t take near that time to complete, but it is our home for the next two years.
Quote from @Jeff Valone:
Quote from @Caleb Brown:
The only 2 options I see with no capital is seller financing or partnering on a deal. What is the plan with the house you are buying? If you have a 2 year plan stick to that. During the 2 years focus on learning and building a strong foundation. Also save extra $$, you need cushion and reserves. Sometimes you have to be a little patient.
We’re doing a live in flip. Primarily with sweat-equity but it’s very doable and I’m confident in its return potential. I plan on using this deal to fund future plans but I’d love to be able to do more during this time, as this house won’t take near that time to complete, but it is our home for the next two years.
I am doing a live in flip too! I would advise to focus on that. There will be items that pop up you weren't expecting. If you are already low on capital you need to have enough in the emergency fund/reserves. Be patient, after 2 years flip it and do it again. Use the excess funds to invest.
Quote from @Jeff Valone:
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
That's awesome Jeff! Good on you for having a plan, now the hard part... sticking to it. Continue to post on these forums and browse them to gain some general knowledge and pick out things you want to dive into and get more info on and maybe reach out to someone who seems to have a good bit of experience on that particular subject.
It is very possible to add to your portfolio with little capital, it's about being smart with your money and sticking to said goals. The biggest thing to remember is real estate investing is a marathon, not a sprint and you will grow just let it take some time and be patient.
I'd talk to people (other investors or agents) on BP forums that have tried different things and ask them what did or did not work for them and how something may work for you. Find what interests you that works well with your lifestyle and where you are at in your personal life and what you can reasonably handle but do well.
If there are questions you have, post them! I'm sure other people have the same question and it will open a flood of information for you!
-
Real Estate Agent Texas (#786340)
- (979) 450-3580
- [email protected]
Quote from @Jeff Valone:
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
If you have limited funds available, flipping or BRRRR'ing could be an excellent way to get started. With this strategy, you can purchase a property using hard money with only 10% down, and they will cover 100% of the renovation costs. If you're flipping the property, you can sell it for a profit and use the proceeds to continue investing. Alternatively, if you're pursuing a BRRRR deal, you can refinance the property at a higher appraised amount, allowing you to be in the deal for less than 20% down and potentially even receive cash back at closing.
Quote from @Tatum Littleton:
Quote from @Jeff Valone:
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
That's awesome Jeff! Good on you for having a plan, now the hard part... sticking to it. Continue to post on these forums and browse them to gain some general knowledge and pick out things you want to dive into and get more info on and maybe reach out to someone who seems to have a good bit of experience on that particular subject.
It is very possible to add to your portfolio with little capital, it's about being smart with your money and sticking to said goals. The biggest thing to remember is real estate investing is a marathon, not a sprint and you will grow just let it take some time and be patient.
I'd talk to people (other investors or agents) on BP forums that have tried different things and ask them what did or did not work for them and how something may work for you. Find what interests you that works well with your lifestyle and where you are at in your personal life and what you can reasonably handle but do well.
If there are questions you have, post them! I'm sure other people have the same question and it will open a flood of information for you!
I’m just starting to try and find and build a network. It’s not easy for me but I need to do it for me and my family. I’m going to my first meeting next week to hopefully start that process. I’m in it for the long haul so I’m ready for this marathon.
- Investor and Real Estate Agent
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@Jeff Valone I came across a headline I did not understand at first:
Be. Do. Have.
Or better: Step 1: BE, Step 2 DO, step 3: HAVE.
What it means is you can't start with the "Have" - in this case rental properties. Even though this is your desired outcome. A lot of people think this way, especially if they experience money issues, they think if I would only "have xyz" my life would be different.
The truth is, it will not. Look no further than people who win the lottery. Within a short time most of them are back where they started, usually much worse. Because they did not start with step one, which is "Be".
In your case this means you have to become a home owner and a real estate investor in your head. This starts with becoming financially literate, fiscally responsible, proficient managing money. This part is more difficult to master than to learn the mechanics of real estate investing, because you have to change who you are. For some people that is a longer journey, for others it's shorter.
Step two is to "do" - that's the part where you "do" what real estate investors do. Look at deals (a LOT of deals), talk to people, learn how to raise money, learn how to sell, learn how to put deals together.
Only now you are ready for part three which is "Have".
The interesting part is that if someone has become a real estate investor and looses everything, gets kidnapped and wakes up on another continent - guess what will happen in a short amount of time? They will own properties again, because that is "who they are".
The other way around: owning a property does not make you a real estate investor, just as winning the lottery does not make you a millionaire (for long).
-
Real Estate Agent Wisconsin (#82198-94)
- 262 671 6868
- http://www.OnPointRG.com
- [email protected]
@Jeff Valone wholesaling is probably the best way to build up some capital to the reinvest in flips or BRRRRs. It sounds like you are handy if you plan to diy your live in flip so you could also attend RE meetups and see if you can find someone that wants to partner on a flip - they bring the cash, you do the work.
Quote from @Steven Foster Wilson:
Quote from @Jeff Valone:
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
If you have limited funds available, flipping or BRRRR'ing could be an excellent way to get started. With this strategy, you can purchase a property using hard money with only 10% down, and they will cover 100% of the renovation costs. If you're flipping the property, you can sell it for a profit and use the proceeds to continue investing. Alternatively, if you're pursuing a BRRRR deal, you can refinance the property at a higher appraised amount, allowing you to be in the deal for less than 20% down and potentially even receive cash back at closing.
I’ve seen hard money to be my most logical option, at least to start. Once I’ve got our house closed on and settled, my next goal is to look deeply into hard money loans and deals to get with it.
Quote from @Tim Delaney:
@Jeff Valone wholesaling is probably the best way to build up some capital to the reinvest in flips or BRRRRs. It sounds like you are handy if you plan to diy your live in flip so you could also attend RE meetups and see if you can find someone that wants to partner on a flip - they bring the cash, you do the work.
I’ll be attending my first meeting next week. I’m getting serious and need to take action. I know it may not be immediate, but I need to build a network.
I also would love to get with a wholesaler and really understand how it works. I’d ultimately love to work under/for an investor and learn the ins and outs, while doing the ins and outs.
Quote from @Marcus Auerbach:I’ve screwed my head on right. Over time I became better and understood my lack of “being”. I’m about to “do” with my first property and I’m very excited and ready for this time. I just want to continue growing and experience as much as I can. I KNOW I will succeed and further myself. It’s just a matter of time.
@Jeff Valone I came across a headline I did not understand at first:
Be. Do. Have.
Or better: Step 1: BE, Step 2 DO, step 3: HAVE.
What it means is you can't start with the "Have" - in this case rental properties. Even though this is your desired outcome. A lot of people think this way, especially if they experience money issues, they think if I would only "have xyz" my life would be different.
The truth is, it will not. Look no further than people who win the lottery. Within a short time most of them are back where they started, usually much worse. Because they did not start with step one, which is "Be".
In your case this means you have to become a home owner and a real estate investor in your head. This starts with becoming financially literate, fiscally responsible, proficient managing money. This part is more difficult to master than to learn the mechanics of real estate investing, because you have to change who you are. For some people that is a longer journey, for others it's shorter.
Step two is to "do" - that's the part where you "do" what real estate investors do. Look at deals (a LOT of deals), talk to people, learn how to raise money, learn how to sell, learn how to put deals together.
Only now you are ready for part three which is "Have".
The interesting part is that if someone has become a real estate investor and looses everything, gets kidnapped and wakes up on another continent - guess what will happen in a short amount of time? They will own properties again, because that is "who they are".
The other way around: owning a property does not make you a real estate investor, just as winning the lottery does not make you a millionaire (for long).
Quote from @Jeff Valone:
Quote from @Tim Delaney:
@Jeff Valone wholesaling is probably the best way to build up some capital to the reinvest in flips or BRRRRs. It sounds like you are handy if you plan to diy your live in flip so you could also attend RE meetups and see if you can find someone that wants to partner on a flip - they bring the cash, you do the work.
I’ll be attending my first meeting next week. I’m getting serious and need to take action. I know it may not be immediate, but I need to build a network.
I also would love to get with a wholesaler and really understand how it works. I’d ultimately love to work under/for an investor and learn the ins and outs, while doing the ins and outs.
Where are you located?
Quote from @Tim Delaney:Wichita Falls, Texas
Quote from @Jeff Valone:
Quote from @Tim Delaney:
@Jeff Valone wholesaling is probably the best way to build up some capital to the reinvest in flips or BRRRRs. It sounds like you are handy if you plan to diy your live in flip so you could also attend RE meetups and see if you can find someone that wants to partner on a flip - they bring the cash, you do the work.
I’ll be attending my first meeting next week. I’m getting serious and need to take action. I know it may not be immediate, but I need to build a network.
I also would love to get with a wholesaler and really understand how it works. I’d ultimately love to work under/for an investor and learn the ins and outs, while doing the ins and outs.
Where are you located?
Quote from @Jeff Valone:
As stated, I’m completely new to real estate. I’ve done some light reading and research but I’m more efficient when learning by doing. I also learn well by getting feedback and interactions from people who know what they’re doing. I’m in the process of buying our first home and we have a 2 year plan for it. What I’m wondering is, with little to no capital, how likely is it that I can add more properties to my portfolio? Also, who do I need to talk to/set meetings with to make these things happen? I’m an active learner and don’t like to waste time so I want to build my skill set and portfolio consistently.
@Jeff Valone we have a real estate meetup in Wichita Falls this Tuesday at 6pm. It's a great way to meet people, network and learn. This is a great place to come to get started and talk to others about different strategies.