Feeling overwhelmed and discouraged
New to Real Estate · Baton Rouge, LA · Member since 2023 · 1 post · 17 votes
Feeling overwhelmed and discouraged
Most Popular Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes@Kenneth D. - BiggerPockets is built for you. This is the challenge. You are right on track, you are doing it right, and everyone feels this way when starting out. We have these forums, the podcasts, books, and more. Please email me at [email protected] and I will send you a free copy of one of the books to get you started.
Aside from that, it is an immersion. Many (most? All?) of the investors here go through an immersion period of literally 100+ hours, including books, forum lurking/posting, blog reading, YouTube video watching, networking with agents and other investors, etc.
That's before they feel COMFORTABLE with even taking the next steps towards buying that first property.
And yes, being two years away from that first or next down payment is totally normal. Many investors, certainly myself, went through a 12-15-24 month "grind" to accumulate the cash to invest in real estate. A grind that repeats between each of the early deals. It can be frustrating watching hotshot social media stars seemingly getting to the endgame overnight, but know that for every smiling photo on the beach are underlying risks/advantages/secrets that may not be exposed on the surface. Some of those who got rich quickest will give it all right back. But, if you approach it as a grind, with a long-term outlook, you can look up in 7-10 years with a solid pile of equity and a surprisingly large and/or reliable stream of income.
You are doing it right. Sit back, make REI self-education a hobby, on the side, for free or the cost of a few books, and when you are well-capitalized, speak the language of REI fluently, and have a clear and compelling thesis for the type of deal that will meet your goals, set yourself up to act with a combination of boldness and conservatism that feels right for you.
91 Replies
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Keep at it. Don’t stop educating yourself until you don’t feel overwhelmed anymore. This is a normal feeling. No one said real estate was easy.
- Meriden, CT · Member since 2018 · 699 posts · 500 votes3y
@Kenneth D. - anything good in life takes work so don't give up!
- Pittsburgh · Member since 2023 · 23 posts · 15 votes3y
It's never too late to get started! You will become more knowledgeable bit by bit. It takes time but know you have a great BiggerPockets community here to help and learn from.
- Contractor · Scottsdale, AZ · Member since 2010 · 2k+ posts · 3k+ votes3y
You're on the right track and you've come to the right place.
Spend the next 6 months browsing these forums, reading the blog posts, reading a couple of books, and continuing to go to those local meetups. Also try to spend all of your drive time listening to the podcasts. The BiggerPockets Rookie Podcast is what you should check out first.
Do all this and you'll have enough education to do your first deal before you turn 44. Guaranteed.
Even though it feels overwhelming now, rest assured that this is actually quite a simple business to understand. Doing deals, navigating rehabs, raising money - All of that can be challenging. But the business itself is simple to learn.
- Investor · Cleveland, TN · Member since 2016 · 279 posts · 187 votes3y
@Kenneth D. Have you considered some type of house hack? Just in case you're not familiar with the term, house hacking loosely refers to buying a property that you will live in as well as earn money on. Common idea's are buying a larger place than you need and renting out rooms (this is best if you are single and don't mind roommates) or buying a small MFH. If you OO (Owner Occupy) it's only 3.5% down for a FHA loan.
- New to Real Estate · Member since 2023 · 28 posts · 14 votes3yYou’re not alone, fwiw! We’re about to experience a major financial setback, and it can be incredibly tough to stay motivated.
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
Save the money and learn, learn, learn in the meantime. Then even if after 2 years you decide real estate isn’t for you, you’ll have all that money you can do whatever you want with.
Hang in there. - 3yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Start networking to learn and when you know enough, like in 6 months, you can start raising funds via private money.
Logical Property Management4.9453 Reviews - 3yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
to learn the venacular a good and inexpensive way to do that is to simply take a pre license course for your RE license. they are cheap and they will teach you all the basics and give you a foundation to work from.. you see on BP many members have their license.
- Investor · Castle Rock, CO · Member since 2021 · 79 posts · 104 votes3y
Hey, 47 year old here. No properties yet but will be submitting offers on a couple by the end of next week. My journey started over two years ago. June 2021 driving from Oklahoma City to Ada, OK for a work trip. I'd downloaded a handful of the OG podcasts after searching for ways to make passive income. I had about $5,000 saved and was thinking I would fund an IRA or my HSA. Now, after two years, I've invested probably 750 hours into learning between books and podcasts, met with others locally who invest and have a hair over $30,000 saved. My budget is small in terms of buying power but so what? It took two years but so what? If you start today saving everything you possibly can and it takes two years and you buy your first investment property at 45, you've accomplished more than probably 99% of other Americans who will never own an investment property. And the first from what I've heard and been told is always the hardest to buy.
The tl:dr is how do you eat an elephant? One bite at a time. Start listening to episode 1 of the Rookie podcast, get a book from the library on RE investing and just take action. You'll get there.
- 3yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
@Kenneth D. - BiggerPockets is built for you. This is the challenge. You are right on track, you are doing it right, and everyone feels this way when starting out. We have these forums, the podcasts, books, and more. Please email me at [email protected] and I will send you a free copy of one of the books to get you started.
Aside from that, it is an immersion. Many (most? All?) of the investors here go through an immersion period of literally 100+ hours, including books, forum lurking/posting, blog reading, YouTube video watching, networking with agents and other investors, etc.
That's before they feel COMFORTABLE with even taking the next steps towards buying that first property.
And yes, being two years away from that first or next down payment is totally normal. Many investors, certainly myself, went through a 12-15-24 month "grind" to accumulate the cash to invest in real estate. A grind that repeats between each of the early deals. It can be frustrating watching hotshot social media stars seemingly getting to the endgame overnight, but know that for every smiling photo on the beach are underlying risks/advantages/secrets that may not be exposed on the surface. Some of those who got rich quickest will give it all right back. But, if you approach it as a grind, with a long-term outlook, you can look up in 7-10 years with a solid pile of equity and a surprisingly large and/or reliable stream of income.
You are doing it right. Sit back, make REI self-education a hobby, on the side, for free or the cost of a few books, and when you are well-capitalized, speak the language of REI fluently, and have a clear and compelling thesis for the type of deal that will meet your goals, set yourself up to act with a combination of boldness and conservatism that feels right for you.
- Real Estate Agent · Baton Rouge, LA · Member since 2023 · 5 posts · 9 votes3y
It’s definitely overwhelming at first, but that will feel better with time and education! I would venture to say this is an industry where we are all continuing to learn with every year and every transaction. The rookie podcast and the book on real estate investing by Brandon Turner were great places for me to start! I can’t recommend them both enough. I’m local to BR and try to make it to meetups when I can around my work schedule. Let me know if you’d like to go again, and I’d be happy to be a friendly face!
- Rental Property Investor · St. Louis, MO · Member since 2022 · 125 posts · 124 votes3y
House hack if you can make it work with your lifestyle/family. 3.5% down is much more achievable and you could live close to mortgage free and save. Quickest way to get started with REI. Best of luck!
- 3yDenis PonderPro MemberNew to Real Estate · Yuma, AZ · Member since 2023 · 280 posts · 246 votes
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
I would suggest returning to the meet up and connecting with a few people. Ask them if they need help with any kind of manual labor projects and get to work. Ask them as many questions as you want when you aren't on the clock and build relationships. You will learn much more by doing and over the course of the next 2 years, you can learn A TON by adding value to other investors. You might even find a private lender who can get you in the game faster. Maybe adjust your buy box so you don't have to wait 2 years? It's up to you what direction you want to take.
You can do it! Take another step forward tomorrow then repeat that every single day.
- Member since 2023 · 1 post · 4 votes3y
Im in the same boat bro. I am trying to learn as much as I can. I will make a move whenever I feel ready. But I know I have to start. Don't be discourage, just keep learning.
- New to Real Estate · MD · Member since 2020 · 1 post · 6 votes3y
I am completely new and have just been reading through the posts, unable to contribute. But this one is entirely in my wheelhouse! :)
For many years I have been considering investing. I start out, go to a few meetings, buy books, lurk on BiggerPockets, listen to podcasts... Each time, I get to a point where it all feels like too much and I can't make a first step in any direction. Shortly after that, I quit. But this desire keeps nagging at me, and months or years later, I try again. Even though I have been so stop and start, more and more of the vocabulary and strategies make sense each time I return. And slowly, I can see I do have options and there is a way forward.
Like others have said on this thread, stay and learn. Make learning your goal. In fact, because of the bits and pieces I picked up through the years, I have been able to provide good advice to friends. Not the same as a professional, but I've been able to give my friends tips on how to find a good realtor, for example. Or answer questions for another friend who wasn't sure if they should set up an LLC for their side hustle. Knowledge is never a bad investment!
What I can tell you with certainty is that time inexorably moves on. You do not want to look back and wonder what you might have achieved if you had pushed through this feeling of overwhelm right now. As you hear things you don't understand, write down your questions and seek answers. There's no deadline... learn as fast or as slowly as you need to. But keep learning.
In my previous attempts I let fear stop me. Where was I going to get the down payment? How in the world could I rehab if I can't even hang a picture? What about taxes? How can I pick the right strategy? How do I find properties off the MLS? What about the market? On and on, the doubts would pile on until I went back to....nothing. I regret that and I hope you can learn from my mistakes.
Those are all great questions. But just sit with them a minute. Don't let the fact that you don't -- right this minute -- know the answers be the thing that keeps you from discovering the solutions. If it turns out that this business is not for you, at least you will walk away with some money saved up, a ton of great information about a variety of important topics that will serve you well whether you invest in RE or not, some new contacts, and the knowledge that you made the CHOICE to find something else. You won't feel that you tried and failed. I wish you the best!
- Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes3y
@Kenneth D. Everyone was where you are now, so don't feel discouraged! I recommend listening to beginner real estate podcasts, books (bigger pockets has lots of great books geared towards beginners) and connect with as many people as you can about real estate!
Just start soaking it all in and before you know it, people you know will be amazed at how much YOU know about real estate.
I'm happy to give recommendations for podcasts or books! If you like to learn by watching videos, there are tons of youtube videos out there as well. I'm not a big video guy, so I can't help you there. But I think bigger pockets has a youtube channel so you could start there.
Good luck and keep us updated!
- Investor · San Francisco, CA · Member since 2022 · 36 posts · 41 votes3y
Hi Kenneth,
I will address your concerns in the order you provided them:
> What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on.
When I started a little over year ago (June 2022), I was an absolute beginner. Nobody in my family or friend group does real estate investing. As of today, I have 2 properties, one purchased in October 2022 and the other purchased in May 2023. Here are the things I used to get me to this point:
1) BiggerPockets
You found this community so that's already the biggest step! Finding a group of like-minded folks is important to feel supported in your real estate investing journey.
2) Lots of reading
I didn't attend any meetups, instead I just read a lot. I really like this because I can go at my own pace, absorb and process the information, and then act.
I started with 2 books:
- Long Distance Real Estate Investing by David Greene
- Buy, Rehab, Rent, Refinance, Repeat by David Greene
Between both books, you'll learn probably about 80% of what you need to know to start. I got through about a third or halfway each book and then stopped, because they started to become repetitive.
3) Asking Lots of Questions
Besides BiggerPockets, I had some other people I could go to:
- My agent
- My property manager
- My lender
- My CPA
- My lawyer
In the beginning, it's going to feel intimidating. That's because you are learning the vocabulary, which takes time to understand. It took me about 2-3 months, but I was a) unemployed and b) reading everyday, so I would say 6 months is more realistic.
> Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away.
So for me, this is how I approached the finances part.
To start, I wanted to have atleast $150,000 in cash. I felt this number gives a decent amount of flexibility and helps with risk reduction.
Then I needed to identify which markets I wanted to invest in. This could be a very long post on how I determine that, but to keep it short, I decided on San Antonio, TX, which is outside of where I live in San Francisco, CA and, at the time, San Antonio had a median home purchase price of 250k.
Then there were some other factors to consider.
- Right now, interest rates are high (7-8% and climbing). This doesn't mean that it's a bad time to invest, but it does mean that deals that worked when interest rates were 2-3% won't work today. The best solution for this is to a) put more money down (I used 50% instead of 25%) or b) target a property with a lower purchase price.- I always used very conservative numbers. For example, if my property manager said rent would be $1500, in my own analysis I used $1400. If insurance was supposed to be $1300, I would make it $1400. Doing this to every number I saw, sometimes by $50 or $100, helped me feel more confident that I was creating a good buffer for myself.
> I spoke with a property management company and she was helpful but I just don't think I can do this.
Is there something she said that spooked you? Or was it something else? Asking it here is the best way to get a second opinion or if you have more questions, you can post them here as well. - 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
welcome, and sorry that you are feeling discouraged. you got great feedback already in this thread. i'll add a couple things.
at meetups - i strongly recommend that you approach anyone you want, and ask any questions you want. RE investors LOVE to talk shop. i am by no means Brandon Turner, but i consider myself an intermediate investor, and i will happily talk to new investors at meetups for as long as they want.
and... there is nothing wrong with saving for a couple years. a lot of the online hype makes it seem like you're doing something wrong if you're not buying, but it's much better to be in a stronger financial position.
hope this helps. keep going. ask any questions you want here in the forums AND at meetups.
- Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes3y
What I love about real estate is it is okay to stumble, as long as you stumble forward.
You can also start small and work your way up as you learn. For example, buy your first house hack. Less money down and you will learn about the home buying process, basic property management skills, and a lot of the lingo will be used in real time, making it easier to understand.
Real Estate is very much a hands on industry. You can (and should) read, listen, and network, but the real lessons are in actually doing.
- Los Angeles · Member since 2021 · 9 posts · 14 votes3y
Grant it, I know you already have a lot of replies but want to show you my support as well. Beleive me, I was there too and still have those days sometimes. I even recall driving 30 miles to a large meetup and felt so overwhelmed that I left without even talking to anyone. Just know that there are people willing to help. A lot of us take pride in helping others. You already showed great strength just by starting on this journey and taking small actions. Just keep at it. All great things are hard at the beginning. It will get easier, I promise.
- Flipper/Rehabber · Colorado Springs, CO · Member since 2016 · 499 posts · 167 votes3y
getting started is ultra challenging and you are entering at a perplexing time due to sharp property value increases, punitive interest rates for investors, and the always elusive cash flow. we're used to instant results but that's not gonna happen when you deal in properties worth thousands. Youre 43? I started at 68!!!! You should do some schmoozing with folks, real estate is the hottest topic at any party or gathering. I've been looking at houses recently but backed out of 2 contracts after realizing they had NO possibility for cash flow, and why should I deal with snarky tenants AND end up paying THEIR rent??? Now is a perfect time for you to remain unencumbered and in research mode. Dont quit!!!!!!!
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3y
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
You raise two big issues:
As Sgt Schultz would say "I know nothing!" That of course was to keep himself out of trouble. You on the other hand need to know a lot more than you currently know.
And, then does it make sense financially.
For the first, you can take the slow leisurely route of books, forums, videos meetups and time. Or, you can work with someone who loves real estate, knows how to teach and has seen every angle, good and bad and knows there is an awful lot of bad to avoid and can get you on the bullet train.
Then, does it make financial sense. That's actually the bigger question.
There are many ways to get into real estate investingI favor finding properties "Off Market" doing “Subject To” and selling on “Lease Option” for great cash flow and nice profits. Such as: https://www.biggerpockets.com/forums/311/topics/1141313-subj...
Even if you don't quite understand how the process works, I explain the terms and the process. look at the numbers and the results. It gives you money to buy the next property. It's a lot simpler to get cash flow and have a property worth hanging onto than it seems. But, you have to know what not to do too.
If you want a copy of the spreadsheet just message me
https://www.biggerpockets.com/users/mikeh695
It should help a lot.
- New to Real Estate · Member since 2023 · 28 posts · 14 votes3yThis is amazingly helpful.
Quote from @Rick Albert:
… it is okay to stumble, as long as you stumble forward. …
- Member since 2022 · 55 posts · 77 votes3y
everything worth having in life isnt easy to obtain, if you have to wait two years to save why not house hack or use creative finance ? the possibilities are endless you are only 43 years young !!!
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