Real Newbie Questions
Hello, I'm Katelyn I'm only 20 years old, but have been thinking about getting involved in real estate for the past couple months. I submitted my last post and realized how general and vague it was after digging through and reading some other posts. I guess I should clarify, I'm really new to the real estate world. I'm seeking guidance on where to start when it comes to understanding terminology and what my options for investments even are. I don't have any specific goals set yet. All I know is I would like to be able to have 2 investments this year. Not sure if that's possible or what they would even be. I've read some of Robert Kiyosaki's books, but I have no technical knowledge about what I should really be looking for in this industry. I know I want to be a real estate investor eventually. But I guess I'm not sure what content to go for that will explain to me what I need to know before making any investment, the different types of investments, how hiring people works, If I should go work for someone who is already an investor, and if I do I'm not even sure what they would even need or if investors even hire anyone who's new. I'm also getting mixed messages regarding having a real estate license. I don't know if I should spend money to get one. If I should work as a real estate agent even though I want to be an investor or if I shouldn't bother with it. I don't mind working, especially if it has the value of knowledge. But I don't want to have a new job like this and to stop there. I ultimately do want to be the person who owns the assets. Anyway thank you for reading this.
#4 House Hacking Contributor
- Real Estate Agent
- Beverly, MA
Quote from @Katelyn Nelson:
Hello, I'm Katelyn I'm only 20 years old, but have been thinking about getting involved in real estate for the past couple months. I submitted my last post and realized how general and vague it was after digging through and reading some other posts. I guess I should clarify, I'm really new to the real estate world. I'm seeking guidance on where to start when it comes to understanding terminology and what my options for investments even are. I don't have any specific goals set yet. All I know is I would like to be able to have 2 investments this year. Not sure if that's possible or what they would even be. I've read some of Robert Kiyosaki's books, but I have no technical knowledge about what I should really be looking for in this industry. I know I want to be a real estate investor eventually. But I guess I'm not sure what content to go for that will explain to me what I need to know before making any investment, the different types of investments, how hiring people works, If I should go work for someone who is already an investor, and if I do I'm not even sure what they would even need or if investors even hire anyone who's new. I'm also getting mixed messages regarding having a real estate license. I don't know if I should spend money to get one. If I should work as a real estate agent even though I want to be an investor or if I shouldn't bother with it. I don't mind working, especially if it has the value of knowledge. But I don't want to have a new job like this and to stop there. I ultimately do want to be the person who owns the assets. Anyway thank you for reading this.
Welcome! Sounds like a very familiar position. I started off pretty unsure which direction I wanted to go and ultimately landed on house hacking, which I am a little biased but think is the best route for rookies. You’re in the right place to learn about different strategies, once you figure out which one you want to go with go all in.
As for the license, I was in the same boat and waited a few years and actually just recently got it. I’d say hold off. Being an agent is very different from being an investor. I’m serving other people’s investment goal, it has done anything for mine except help build capital.
Happy to help where I can feel free to reach out!
It might be intimidating to begin real estate investment, but it's crucial to familiarize yourself with the fundamentals. To understand important terms and concepts, use resources like books, podcasts, online courses, and discussion boards. Pay close attention to learning about various investing tactics, including wholesaling, fix and flips, rental properties, and home hacking. Study up on legal issues, property management, market research, property analysis, and finance possibilities.
Participate in online forums like BiggerPockets, attend meetups, join local investing clubs, and establish online and offline connections with other real estate investors. Locate a mentor who can help you learn from their experiences and offer you individualized guidance.
Even in an entry-level role, get experience by working for a property management firm or real estate investor. As you have more experience, seek for chances to make your own real estate investments. Start small and work your way up as you build comfort and confidence in your skills.
Although not required, a real estate license can offer beneficial networking and educational possibilities for those who engage in real estate. A smart first step in your career aspirations as a real estate agent could be obtaining a license. But think about if getting a license fits with your interests and long-term objectives.
Recall that investing in real estate is a journey, and it's acceptable to begin small and pick up skills along the way. Never stop learning, never stop being interested, and never be afraid to take measured chances. Real estate investment is a field where you may succeed if you are committed and persistent.
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Have you considered a job in property management? You can get a well-paying job, and you'll learn more in one year than most investors learn in their entire investing lifetime. Your employer may even help you get licensed as a real estate agent. You can learn what makes a good investment and what doesn't. It's a great way to get your foot in the door.
Below is some generic advice.
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. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, facebook, or a Google search. Birds of a feather flock together!
5. 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. A handy search bar in the upper right 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, recognizing a good deal will be much easier 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.
6. Study the market. You can learn to do this independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.
7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still not know enough because certain things must be learned through trial and error. You don't need to know everything to get started; you 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 forgiving world; the average person can still make money even with some big mistakes.
