Looking for guidance in making first steps in my real estate journey.
Member since 2025 · 2 posts · 4 votes
Looking for guidance in making first steps in my real estate journey.
Most Popular Reply
Investor · CT · Member since 2022 · 36 posts · 18 votes
1yWelcome to the community, Ayden! At 22, you're far ahead of the game with established credit, a business, and an expanding body of expertise. That's a solid basis, particularly in this industry where momentum and thinking are crucial.
Given your interest in grants/DPA programs, wholesale, and BRRRR, here's how I would approach getting started:
A. Wholesaling: With little to no down payment, this is a fantastic option to invest in real estate. Finding interested sellers and assigning contracts is the key. I would advise to learn how to locate deals by cold phoning, driving for money, networking with weary landlords, and other strategies. Check up the wholesale laws in your state; some may call for a license or other disclosures. Use Facebook groups or meetups to network and create a modest cash buyers list.
B. BRRRR Method: This effective strategy for developing a rental portfolio with less capital tied up and is ideal if you're willing to hold onto your home for an extended period of time. Learn about local lenders that offer cash-out refinances based on after-repair value, or ARV. Concentrate on developing your ability to assess offers using both rental income and rehabilitation expenses.
C. Grants and DPA Programs: If you're willing to live in the property for a year, these can be game-changers for first-time buyers. Examine state and municipal DPA programs (many offer grants or forgiven loans), FHA loans, and NACA. Speak with a mortgage broker who focuses on helping first-time and investor purchasers; they will be aware of what options are available in your area.
The best piece of advice is to avoid trying to master everything at once. Pick a path and follow it closely. Your confidence will quickly increase and everything will become clearer when your first deal is completed. I'm happy for you. Continue to ask questions, and if you would like to discuss a deal or strategy, don't hesitate to message me. Without a doubt, you're in the proper place.
6 Replies
- 1yBryce JamisonPro MemberRental Property Investor · Mebane, NC · Member since 2015 · 494 posts · 439 votes
For everyone thinking about getting into real estate investing, I recommend spending at least 6 months educating yourself through websites likes this and its family of books and podcast, other real estate podcast, books at the library, and local meetups. After 6 months you'll know what strategy you want to deploy, and have the confidence and knowledge to do it.
This will also give you time to pay off any consumer debt, save an emergency fund, and start saving for a new property. You can also use the time to learn everything you can about your target market using websites like Zillow.
- Investor · CT · Member since 2022 · 36 posts · 18 votes1y
Welcome to the community, Ayden! At 22, you're far ahead of the game with established credit, a business, and an expanding body of expertise. That's a solid basis, particularly in this industry where momentum and thinking are crucial.
Given your interest in grants/DPA programs, wholesale, and BRRRR, here's how I would approach getting started:
A. Wholesaling: With little to no down payment, this is a fantastic option to invest in real estate. Finding interested sellers and assigning contracts is the key. I would advise to learn how to locate deals by cold phoning, driving for money, networking with weary landlords, and other strategies. Check up the wholesale laws in your state; some may call for a license or other disclosures. Use Facebook groups or meetups to network and create a modest cash buyers list.
B. BRRRR Method: This effective strategy for developing a rental portfolio with less capital tied up and is ideal if you're willing to hold onto your home for an extended period of time. Learn about local lenders that offer cash-out refinances based on after-repair value, or ARV. Concentrate on developing your ability to assess offers using both rental income and rehabilitation expenses.
C. Grants and DPA Programs: If you're willing to live in the property for a year, these can be game-changers for first-time buyers. Examine state and municipal DPA programs (many offer grants or forgiven loans), FHA loans, and NACA. Speak with a mortgage broker who focuses on helping first-time and investor purchasers; they will be aware of what options are available in your area.
The best piece of advice is to avoid trying to master everything at once. Pick a path and follow it closely. Your confidence will quickly increase and everything will become clearer when your first deal is completed. I'm happy for you. Continue to ask questions, and if you would like to discuss a deal or strategy, don't hesitate to message me. Without a doubt, you're in the proper place.
- 1yDrew SygitBusiness MemberProperty Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
@Ayden Bourne just gave this advice earlier to another poster.
1) Focus on 2-4 unit properties
2) Explore FHA 203(k) loan which requires only 3% down and allows rehab to be included in purchase mortgage amount. This will allow you to finance improvements when you buy - allowing you to buy properties that are NOT mortgageable, which will allow you to get a better purchase price.
3) Get pre-approved for both FHA 203(k) & regular FHA mortgages, so you can use either depending on the 2-4 unit property you find.
Your goal should be to improve and stabilize the property, so you can refinance out of the FHA loan to free it up to use it again (can only have one at any given time, unless extenuating circumstances).
NOTE: you have to owner-occupy for the first 12 months per the mortgage, before you can convert to 100% rental.
Would also recommend living as cheap as possible, while generating as much cashflow as possible:
1) Live in the basement if possible and rent out 100% of the units. Most cities will NOT let you rent out a basement without legal egress, but most do not care if the property owner lives in an unapproved basement.
2) If you live in a unit, rent out other bedrooms as MTR or STR.
3) Once renovations done, experiment with renting out a unit as MTR or STR. If successful, convert rest of units.
All this will give you a LOT of experience!
Logical Property Management4.9459 Reviews - Member since 2025 · 194 posts · 140 votes1y
Welcome!
When you're getting started in real estate, two of the most crucial (but often overlooked) areas to focus on are tax planning and asset protection. They might not feel as exciting as scouting new deals or closing your first contract, but they’re foundational to building a strong, sustainable business—and they’ll help you avoid expensive pitfalls down the line.
A thoughtful tax strategy helps you hold onto more of your profits, take advantage of key deductions, and choose the right legal structure for your investments. Meanwhile, smart asset protection safeguards your personal wealth, reduces legal risk, and gives you peace of mind as your portfolio grows.
If you're diving into real estate wholesaling, it can be a savvy, low-cost way to break into the industry, but it also comes with legal gray areas you’ll want to navigate carefully. In many states, you’ll need a real estate license to wholesale, especially if you're advertising a property you don't own. In most cases, you're only allowed to market your contract rights, not the property itself. Market it the wrong way, and you could face legal trouble for acting as an unlicensed agent.
Some states are especially strict. For instance, in Illinois, you can only wholesale one property per year without a license. Others may permit wholesaling, but with rules around disclosures and how contracts are structured. These laws are designed to protect both sellers and buyers from confusion or potential scams.
Here are a few key things to watch for:
- Assignment Clauses: Make sure your contract lets you assign it to another buyer. You can usually do this by adding “and/or assigns” next to your name. But be cautious, some contracts specifically prohibit assignments.
- Contingency Clauses: These provide a legal exit if the deal goes sideways, for example, if an inspection uncovers major issues or you can’t find a buyer. Without contingencies, you could risk losing your deposit or being forced to close the deal yourself.
Because laws vary from state to state, it’s essential to connect with a real estate attorney who understands the ins and outs of wholesaling. They can help ensure your contracts are solid and that you’re fully compliant.
You don’t need to know everything right away. One of the best moves you can make early on is to surround yourself with pros, a real estate-savvy tax advisor and an attorney focused on asset protection. With the right guidance, you’ll be able to move forward with clarity and confidence.
You’re already on the right track just by asking questions and seeking knowledge. Keep pushing forward - you’ve got this!
Disclaimer: This message is for educational purposes only and does not constitute legal, tax, or financial advice. No professional relationship is formed through this communication. Please consult licensed professionals for guidance tailored to your specific situation.
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes1y
Quote from @Ayden Bourne:
Hello all my name is Ayden Bourne, I am 22 years old and sell insurance for a living. I have been growing my credit since I was 18 so I have established credit, I have an LLC, and a decent amount of knowledge on real estate. I am looking to make my first steps in getting into the industry. I am somewhat overwhelmed as to where to start so I am glad to be apart of a community full of people who had startup stories similar to mine and also very different in their own way. I am in the right place to grow my knowledge on the industry and learn how to apply this knowledge to start making money and gaining equity through real estate.
I am most interested in learning about wholesaling, BRRR method, and grants/DPA programs to buy properties whether I must live in it or not.
My recommendations below:
1. Do not focus on wholesaling. Focus on learning how to find properties that fit an investment criteria. This means establishing relationships with other investors, realtors (residential & commerical) other wholesalers,... Decide what kind of investment are you willing to make in systems to market & manager your business. Once you know how to find opportunities and you have the right systems in place you can the knowledge and systems for your real estate business.
2. Fund It- While establishing the methods and processes to find opportunities you also need to start working on how you will fund the opportunities.
Good luck
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