I am new to bigger pockets. I am reading through the beginner guide to real estate investing. The guide has a chapter on creating a business plan. Is it crucial to have a complete business plan before attempting to invest? I know what my niche will be and preferred investment strategy. Is there a certain amount of time I should dedicate to education before seeking out my first deal? Where can a beginner get practice on evaluating deals? Just seeking some guidance/advice.
@Norma Cole I am somewhat in disagreement with this portion of the ultimate guide. Newbies often get all hung up on the following stuff: building a team, getting an entity, developing a marketing plan, setting up a website, designing a logo, choosing a company name, etc, etc, etc. And they get stuck hear at this stage, messing around with stuff that is really not necessary. Keep it simple and start finding good deals.
Thanks so much for you response Bryan. I really want to get involved and although I know it is important to at some point have a business plan my focus will definitely shift away from as you stated (finding good deals).
Welcome to Bigger Pockets. I'm relatively new to (REI) as well. I've owned a number of homes I've lived in, which I've been through the process of locating, purchasing and selling. The (REI) concept is something I've thought about for a long time but only began seriously looking into in about the last six months. I also still consider myself new to this but began almost immediately determining which direction to head, working on a plan, formulating a team, setting up financing, becoming familiar with my target area and searching for potential deals. I have made a number of offers, have an accepted offer on a foreclosed (SFR) and will be making an offer today on a duplex I looked at yesterday. All along I continue to read and study everything I can find that pertains to my chosen direction. I'm building a library of books, literature and reference information. I search the internet daily for help and information. The Bigger Pockets website is a great source of help and encouragement. We never know it all and in most cases the more we learn the questions we have.
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The poet John Milton’s words, “They also serve who only stand and wait,” may be both profound and genuine, but the true riches of life are far more likely to accrue to those who actively go out and seek them. Seldom does success come marching in accompanied by a brass band in full regalia. More often, it’s achieved by those who labor long and hard. Take the initiative, and you will create your own opportunities. There is no substitute for action backed up by a well-thought-out plan. "Napoleon Hill"
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Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers.
Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
Consider checking out HUD homes for small multi's owner occupied gets first crack.
You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
I agree with @Bryan L.
Don't get stuck on the "development phase" let your business grow organically. Figure out what you want to do, figure out how to do it (not every little detail, you'll get hung up) and do it. I wasted ALOT of time starting out trying to learn everything and putting it all together. 85% of your time should be spent on marketing and finding deals (depending on you niche).
Maverick Voigt | [email protected]
Is this the only thing that you ever post?
No, but I do post some form for every newbie I feel it is a good foundational start.
Thanks for the tips. I found them very helpful.
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