I'd like to hear from you if you had Zero REI experience starting out
Member since 2023 · 10 posts · 19 votes
I'd like to hear from you if you had Zero REI experience starting out
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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
2yEveryone starts out with zero experience.
Like many others, I read "Rich Dad, Poor Dad" then saved up some money and bought a property with zero experience or understanding. It worked, as it usually does. Real estate is a very forgiving investment platform.
Before the internet, most investors bought without any understanding of return on investment, cash-on-cash returns, or anything else. They saved up money, bought a nice house in a local neighborhood they believed in, they rented it out over and over again, and learned from their mistakes.
Don't make it so complicated. Do what the old-timers did and learn to do better as you grow.
The DIY Landlord Book4.7247 Reviews
15 Replies
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Theresa Hansen:
I'd like to hear from you only if you had Zero REI experience starting out and you are successful in Flipping, STR, or LTR. I am married but my husband is clearly not interested, or never thinks it's the right time, (market, elections, not enough time etc), honestly I think he's just afraid. I would like to do it anyway and I do have the funds (fully funded HELOC & cash). I have zero REI experience, but I do have an agent who is willing to help in some ways. I work full time (own my own business and can be somewhat flexible) and I am about 3 years from retirement. I'd like to hear from you if you started on your own, with no prior knowledge and have made it to the point where you are successful, and can support yourself, are enjoying it. What were your first steps? Where did you make connections to reputable, affordable contractors? (I think this is my biggest hurdle, in my mind anyway) I am both excited and a bit scared, but never let that stop me.
Any input is welcome.
Here is a post of mine. I hope this provides you with a bit of motivation , Good luck
Hey all, I see so many posts, " I am researching, " I am doing my homework" , I am trying to build my team" "Deciding on which area" So many are TRYING but never do anything, like a hamster on a wheel, A LOT of movement but staying in the same place. What is holding you back? Who needs help, or just some advice.
I started out not know a darn thing. Literally got into RE while at a family BBQ about 15 years ago. My Cuz pulled up in a new SL 500. I said, Joe, I thought you were an ex-ray tech. Well, he was, but he took action and got into RE. So that was my ah ha moment. Within my 1st month I flipped a contract for 19k, yes 19k my 1st month. At that moment I realized there is money in this. All I did was look at a property, run the comps, and got a reno budget, So nothing to intense. My next deal while I was just about to sign the contract on a house in Glenn Cove LI. a truck pulls up. The realtor says, may I help you? Nope says the driver with a lock and chain in is hand. I am here to lock it up, its going into foreclosure. I grabbed the contract and offered 100k less, and got it, Talk about timing. At that point I knew the universe was telling me, RE is my calling. Well, 500 deals later, (about 15 in LI the rest in Cleveland) there is nothing I have not done. Purchased various sheriff auctions, short sale, low-balling, flipping, being a landlord and much more.
If you are stuck, not knowing where to turn, please feel free to reach out,
All the best
- 2yBenjamin AakerPro MemberRental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
I started out as an accidental landlord. We bought a house to fix and flip as a place to live while we built our dream home. We planned to sell, but our agent gave us another option - he had a husband and wife who didn't have the credit to purchase and would we consider renting. We did the necessary background checks and rented it to them. They lived there for 3 years and rebuilt their credit and we ended up selling it to them. We did well and they got a great deal on a house and we were so happy to have helped them get their first home.
Now for the advice: Your husband has to be on-board. You can't go it alone. Perhaps a fix and flip might be something he would agree to if he didn't have to do any work on it. Get a good real estate agent. This person should have some contractors to recommend to you. Maybe at the end of the fix part, you both will decide to try your hand at renting it - 'just for a year'. Maybe you will then see the value of renting it as a way to have income in retirement.
- 2yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
Having a partner can be a valuable asset when investing? Why do you think your husband is afraid? Also how do you define success? Talking with as many people as possible including contractors will give you confidence to get started. You’ll never have all the information for a perfect decision. It’s good to be scared, it keep your senses sharp. Do the math and trust that you can solve problems that arise. Owning RE is another business and you’ve already done that.
- 2yBill HamptonBusiness MemberAccredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 978 votes
I recommend that you join the Georgia Real Estate Investors Association, gareia dot com, to network and get contractor recommendations.
Good luck.
Hampton Tax and Financial Services LLC4.7106 Reviews - Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes2y
Everyone starts out with zero experience.
Like many others, I read "Rich Dad, Poor Dad" then saved up some money and bought a property with zero experience or understanding. It worked, as it usually does. Real estate is a very forgiving investment platform.
Before the internet, most investors bought without any understanding of return on investment, cash-on-cash returns, or anything else. They saved up money, bought a nice house in a local neighborhood they believed in, they rented it out over and over again, and learned from their mistakes.
Don't make it so complicated. Do what the old-timers did and learn to do better as you grow.
The DIY Landlord Book4.7247 Reviews - 2yAndrew FreedBusiness MemberInvestor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
@Theresa Hansen - You got a ton of good feedback already. In reference to finding the best contractors, I highly recommend networking and getting to know high volume investors in your area and asksing them for recommendations. If you plan on flipping or LTR, target those investors. Once you befriend one of these big players, ask who they use. I get the best contractors and referrals from investors doing this day in and out and who already have a solid contractor team in place.
Where do you find these big players? At meetups, contributing to local forums and groups, and also investor focued agents. The key with befriending players making it happen is leading with value, expecting nothing in return and sooner or later, the law of reciprocity will kick in and they will feel a need to help you.
- Realtor · Griffin, GA · Member since 2024 · 18 posts · 14 votes2y
There is already some great information in this thread but ill add my thoughts as I am in a similar situation trying to get started.
First - I would make sure that you and your spouse get on the same page. An investment is not worth losing a marriage over. Figure out what each of you want and what reservations you both have and work through it. It took my wife reading "rich dad poor dad" and start playing the cashflow board game for it to click with her and get her 100% on board.
Second - You've already starting increasing your knowledge and network by joining BP. I'd also get involved with some of the local REI meet ups. There is a monthly meet up in Newnan and Fayetteville that I attend, as im an Atlanta southsider. Im sure there are groups in your areas as well.
Third - You mentioned you have a REALTOR that you are going to work with. I'd make sure that they understand investment properties and how the numbers need to work. Bonus points if they have investment properties of their own. We as investors have to think differently from a newly wed first time home buyer that can overpay based on emotions.
Fourth - Start crunching the numbers on properties and find a deal. Then make offers. (Im still on this step myself).
From there its just a learn as you go and don't give up. You'll put in offers and not even get responses, you'll get No's, but eventually you'll get a yes and can go from "starting" to "being" a Real Estate Investor.
Good Luck and Happy [Deal] Hunting
- 2yTravis TimmonsPro MemberRental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
I would never buy a property without the support of my spouse. It's too expensive, full of surprises, and nervy. It's also probably going to be 1-2 years before a property is fully stabilized and making money month to month. That's going to be a lot of "I told you so" from a spouse that is not on board. Some real resentment will creep in, and that's just not worth it.
I don't know what it would be, but try to find some sort of compromise that you both support. Maybe get a vacation home that would excite him and STR it while you are not using it? You have to find something that he can get behind.
We have found most of our success is STR and MTR. Fair warning - it is death by 1000 cuts while you furnish a place to make it market ready. You ABSOLUTELY need the support of a spouse.
- 2yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
I started with no experience; my first rental was a former primary residence, which I still have; I still work full time; and I generate a part-time income with my portfolio. I've done a few flips - one was a BRRRR that didn't pencil, so it became a flip.
I try not to tell others in the forums what to do; I try to give them things to think about. So, here are some things to think about.
-I am seeing more and more posts from people who say they have "HELOC money." This makes sense given the tremendous growth in home equity over the past 5 years. But here's the thing - HELOC money is expensive money - very expensive money. If you're not worried about generating a return - great! But HELOC money is not cash.
-As @Travis Timmons mentioned, every property is going to have a stabilization period. spreadsheet math that shows a return in month 1 or year 1 is not real. i'd say it's 2-10 years depending on the property type, how much you put down, how much maintenance you have, etc. expect to invest for several years.
-the biggest contributor to my wealth is mortgage paydown. i haven't updated my numbers in a bit, but over the next 10 years, assuming zero percent appreciation, my rents will pay down >$600K in equity. that is wealth, but it's not cash.
-you'll make connections at meetups. so if you're not going to meetups, go to meetups. go to all the meetups. go to meetups 2 hours away. start your own.
hope this helps
- 2ySam YinPro MemberLos Angeles, CA · Member since 2021 · 584 posts · 738 votes
@Theresa Hansen you got me reading this based on the way you titled the post. Like @Nathan Gesner said, everyone starts out with ZERO experience, or you've already started and have some experience.
To your post, I started out with zero experience and kind of by accident. However, once I committed to it and viewed it as a business, I was able to achieve FIRE after a couple of years of hustle. I did not start out with a lot of money or information. I learned as I went and made adjustments to overcome hurdles. I discovered BP about 3 years ago and it has definitely given some perspective.
Thus, it can be done. People before me have done it and many more will do it in the future. I think everyone has a little fear going into something new, but just remember, people did it before you. There is no magic formula. You can do it too.
- Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes2y
We all started with no experience...and most of us work full time jobs and have busy lives and families.
- Rental Property Investor · Bow, NH · Member since 2016 · 216 posts · 185 votes2y
@Travis Timmons
Agree 100%.....the way to compromise with my wife was that she wanted a new car. We saved up for it. We could have paid cash. Instead I ran numbers on a few properties that I projected to cashflow positively and showed her how they would cover the car payment. 5 years later and she is more interested in buying real estate than I am. She was afraid AND tired of hearing me talk about it with no action, i brought a deal that made sense and we have never looked back. It took getting the experience of 1 done to get her on board. We now have several and a small business.
- 2yScott TrenchPro MemberRental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
Theresa - we were all new at one point with zero investing experience. Here's my first post to the BiggerPockets forums introducing myself nearly 10 years ago.
Welcome to BP - this is the place for you. "Ready" is a subjective term, but you can hang out on these forums, meeting agents, lenders, other investors, and anybody else you care to talk with for 1,000 hours. You can listen to the 1,000+ episodes of the podcast, read the 10,000 blog articles, any of the 40 books, and otherwise immerse yourself to your heart's content until you feel ready.
You can browse markets, look at deals, learn to manage properties, practice analyzing deals or estimating rent, and meet with Agents, Lenders, Property Managers, Tax Pros, and Syndicators offering Passive Investments.
At the end of the day, though, real estate involves major financial commitment and/or leverage. Best thing you and your husband can do is to continue to increase your cash position, which will gradually open you to more and more potential investment opportunities, markets, and strategies. You'll find a lot of members spent a year or two immersing themselves in all things real estate while stockpiling cash, prior to actually making that first "all-in" bet, that real estate often, by it's nature, is for first-time investors.
Hope that helps!
- 2yDave MeyerPro MemberHead of Real Estate Investing at BiggerPockets · Seattle, WA · Member since 2015 · 354 posts · 828 votes
Quote from @Theresa Hansen:
I'd like to hear from you only if you had Zero REI experience starting out and you are successful in Flipping, STR, or LTR. I am married but my husband is clearly not interested, or never thinks it's the right time, (market, elections, not enough time etc), honestly I think he's just afraid. I would like to do it anyway and I do have the funds (fully funded HELOC & cash). I have zero REI experience, but I do have an agent who is willing to help in some ways. I work full time (own my own business and can be somewhat flexible) and I am about 3 years from retirement. I'd like to hear from you if you started on your own, with no prior knowledge and have made it to the point where you are successful, and can support yourself, are enjoying it. What were your first steps? Where did you make connections to reputable, affordable contractors? (I think this is my biggest hurdle, in my mind anyway) I am both excited and a bit scared, but never let that stop me.
Any input is welcome.
I think by the nature of it, no one has experience when they're first starting out! The only way to get experience is to get into the game. Not saying its for everyone, but take comfort in the fact that everyone who now owns investment properties once had no experience.
- 2yKerry BairdPro MemberRental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
@Theresa Hansen, How did you get started?
I handwrote letters to distressed homeowners and mailed them. 2000 letters provided the opportunity to buy about 3 deals a month.
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