Advice on where to start

[Miles Dirmann]

Hello, I just graduated college (in 3 yrs) with a finance degree and am finally ready to go all in on real estate investing. The thing is I don't quite know where to start especially in today's economy. I have read a number of bp books and have built up a solid amount of business knowledge especially in marketing as I have helped with a number of marketing oriented projects at my church. Also, I have about $8k in cash and no debt at all!  I'm going to start looking for a few meetups each week to go to and analyze properties daily.. I don't have a job at the moment aside for working at my church on the side. Any thoughts, suggestions, etc.?? Thanks all

[Travis Timmons]

Maximize your W2 earnings, get a 2nd job, swallow your pride and live at home (if that's an option), don't spend a dime on anything if it is not food, housing, or transportation, and pile up money. 

House hacking is the obvious first move. Save up enough for a single family home in as good of a location as you can afford, buy it, and get roommates. Rinse and repeat after that - keep working like crazy, keep delaying gratification, and start saving up for the next house hack. 

It's going to be harder than you think and take longer than you expect. Slow and steady still wins the race, though.

[Nicholas Schwarte]

Hey Miles, congrats on finishing college and doing in just 3 years that's awesome. My recommendations would be definitely try to get another job and save up as much money as you can. As well as doing what you said by analyzing properties daily, this can help a lot with understanding your local market. 

The best way, in my opinion, to get into real estate is through a house hack as I'm sure you've heard a lot of people say. But it truly does hold a lot of power and can be a great resource to get started and grow your REI journey. Look in to see if you can get a 2-4 plex or a SF house that you could rent out other rooms to friends, etc..

Good luck!

[Tanner Lewis]

Quote from @Travis Timmons:

Maximize your W2 earnings, get a 2nd job, swallow your pride and live at home (if that's an option), don't spend a dime on anything if it is not food, housing, or transportation, and pile up money. 

House hacking is the obvious first move. Save up enough for a single family home in as good of a location as you can afford, buy it, and get roommates. Rinse and repeat after that - keep working like crazy, keep delaying gratification, and start saving up for the next house hack. 

It's going to be harder than you think and take longer than you expect. Slow and steady still wins the race, though.

I agree with the notation that you should increase your income; however, it does not necessarily have to be W2 income. Since DSCR loans are now a thing, I think it makes more sense to get a 1099 job and scale your income faster.

This is the boat I am in, too. I just graduated from UVA a year ago, and I initially had a W2 job. I recently switched over to 1099 so I can increase my income and dump it into real estate. It's pretty hard to invest with $8k since most lenders have a $100k minimum loan amount, meaning you will need about $35k to buy a property after the 20% down and the associated closing costs. 

[Travis Timmons]

@Tanner Lewis W2 was more in reference to your full time income regardless of whether it is 1099, self employment income, etc. 

In this scenario, it would be foolish to save up 20-25% down on a cheap investment property on a DSCR loan. The same 35k can get a $400k property to house hack if his DTI is good enough. That $400k property probably has a very short and realistic path to getting to $500k in value. The $100k-ish investment loan purchase that one would use a $25-30k down DSCR loan for is probably going to take a lifetime to increase another $100k in value.

Buy the best assets and take advantage of owner occupant loan options. The only people that would suggest you do a DSCR or non QM loan on your first purchase with limited funds would be someone that sells one of those products.

@Miles Dirmann learn to filter out responses from those with something to sell and those that are good operators trying to help as you navigate your journey on BP, in RE meetups, etc. The real estate world is full of people faking it. Listen to the guy that drives an old truck, buys his clothes at Costco, and won't tell you how many properties he owns. 

[Sherry McQuage]

Talk with people...tell them you're interested in investing in real estate.  You never know who will take an interest in "pouring into young people".  I bet you already know someone that owns investment property, only they don't "appear" wealthy.

Keep working (get a W2 job, or start your own business doing something that will get you around real estate), keep talking, and lead with service.  Help others and they will tell you some wisdom.  Good luck!

[Miles Dirmann]

Thanks for the feedback! I have already connected with a few mentors and got connected with the option to become a commercial or residential real estate agent with solid firms (crye leike / cushman & wakefield) and mentors if I am interested.. A few others said they'd recommend me for jobs once I send my resume. Based on conversations, CRE could be a great option long term but I may be locked into a lower income in the short term and the potential for earnings are more dependent on my production in the residential space. Thoughts? Would looking to become an agent be a solid option to start?

[Wale Lawal]

@Miles Dirmann

Graduating debt-free with a degree in finance can kick-start your journey in real estate. Set clear financial goals and define your real estate investing strategy, such as house hacking or BRRRR. Join local groups, aim for financial targets, and study markets every day. Grow your funds through extra jobs, part-time work, and teaming up with others. Begin with smart ways to live for less or partnerships. Learn from those who've done it, keep at it, and change plans when needed. This strong start will help you beat bumps and hiccups in your path.

Good luck!

[Crystal Smith]

Quote from @Miles Dirmann:

Hello, I just graduated college (in 3 yrs) with a finance degree and am finally ready to go all in on real estate investing. The thing is I don't quite know where to start especially in today's economy. I have read a number of bp books and have built up a solid amount of business knowledge especially in marketing as I have helped with a number of marketing oriented projects at my church. Also, I have about $8k in cash and no debt at all!  I'm going to start looking for a few meetups each week to go to and analyze properties daily.. I don't have a job at the moment aside for working at my church on the side. Any thoughts, suggestions, etc.?? Thanks all

 Get the W2 job. Continue to study and network with other investors.  Start building a list of local  lenders (private and traditional)  contractors, handymen, realtors, wholesalers,  syndicators,.....  with an objective of having your network in place when it's time to pull the trigger on a deal.  

[Mark Dennis]

Quote from @Miles Dirmann:

Thanks for the feedback! I have already connected with a few mentors and got connected with the option to become a commercial or residential real estate agent with solid firms (crye leike / cushman & wakefield) and mentors if I am interested.. A few others said they'd recommend me for jobs once I send my resume. Based on conversations, CRE could be a great option long term but I may be locked into a lower income in the short term and the potential for earnings are more dependent on my production in the residential space. Thoughts? Would looking to become an agent be a solid option to start?

CRE is a great path... it is a tough start since the ramp up time is a couple years. That said doing it now when you do not have big obligations is the time to do it. Getting a W2 job is always a good option that makes it so you can pay your bills. You can start a side gig to get some more income and experience.

[Connor Sheeks]

Hey Miles,

I am currently in graduate school in MEM for physical therapy, and over the last year or so I've been diving into the real estate world by reading books, researching online, etc. I will graduate in about 10 months and want to take any extra time I have from school to learn more about RE. Would love to connect and get some insight into any ideas you may have for learning opportunities, networking, etc. in the Memphis area.

[Jordan Ray]

Quote from @Connor Sheeks:

Hey Miles,

I am currently in graduate school in MEM for physical therapy, and over the last year or so I've been diving into the real estate world by reading books, researching online, etc. I will graduate in about 10 months and want to take any extra time I have from school to learn more about RE. Would love to connect and get some insight into any ideas you may have for learning opportunities, networking, etc. in the Memphis area.

Congratulations on the start of your real estate investing journey! Would love to connect and be your resource for all things real estate investing! 

[Erin Spe]

Congrats on your graduation and your solid foundation in finance! If I were in your shoes, here's what I would do: Start by securing a work-from-home job. This will give you the financial stability and flexibility to focus on real estate. Immerse yourself in learning about land investing. Begin with smaller flips, using other investors as your bank, which will minimize your risk. As you build experience and capital, you can start funding your own deals and scaling up to larger flips. After you build your nest egg from land investments, you can explore other real estate opportunities like housing. This steady approach will help you grow sustainably in today’s economy. Good luck!

[Jonny Reck]

Hey Miles - great post. You’re in an enviable position having valuable of time ahead of you. Decisions you make now will have compounding effects on your future. Some would pay billions to have the time you have.

I would lean heavily into the marketing experience you’re developing. It’s taken me a while to learn this but sales is everything. Every job will requires some kind of sales:  you’re convincing others to use your product or service, that your idea/position is right etc.  Learning sales skills now will be a huge resource for you later.

Network. Be proactive in putting yourself out there. It doesn’t need to be an investor group. It could be groups in some kind of connection with your church. Get yourself out there and start making your name known to others - develop a personal brand.

Identify someone you want to be like - someone you admire and respect - and see if they’re a person who can impart their experience and wisdom to you. You don’t need to pay for this. I’ve had a mentor who was happy to share his learnings and experience with me because I genuinely took interest in his opinions and respected his guidance (and I never asked him for money!).  A good mentor should want to share their learnings (versus sell them) - if you can find this, it could be your fastest way toward enhancing yourself.

I don’t want to give particular input on your financial piece. What I’ll share is what I would do:  I wouldn't spend it. I would save it. Right now is a time to develop skills that create money later. Those skills are acquired through people imparting knowledge that can be implemented into practice. For real estate, this might mean getting your license and learning how to sell (fyi - getting a license does involve costs); breaking deals down for others at no cost; assisting brokers or property managers: finding other ways to offer people valuable services.

I really wish you the best. Pursue the path of wisdom. Avoid folly. Always look up.

- Jonny