I am taking baby steps, and want to ensure that I am fully educated. However, the more I read, the more I find myself burrowing into a deeper hole of putting my education on buckshot.
I originally intended on going the lease option route to start. I chose this because well lets be honest, I do not have the money to buy and hold, and I already have one mortgage hopefully getting set up for a lease option (too far away for my liking to manage), and I will be buying another residence for my family in San Jose/Morgan Hill area.
I suppose my million dollar question for today is, how did you find that sweet spot between knowing you were educated enough to begin your venture and continuously researching attempting to ensure you are educated enough to start?
I started out by doing only one thing. I found people who were going to lose their house to foreclosure. They had to want to stay in their house if they could. I would buy it as a short sale. I would lease option it back to the original owners at about 80% of their former payment. In two to three years they would be able to get a conventional loan and buy it from me.
It only worked about 1/2 of the time. The rest of the time the original owner decided during the option period to move on. I then would sell the house. Finally our state laws changed which made this strategy less profitable.
When original owners move out. The property sometimes needed rehabbed. I, then, found a partner who was good with rehabbing. We worked together sometime.
I hope I am getting my point across, which is you don't have to know every strategy. You only need to know one.
I would not go there, waiting for "perfection" as any real estate agent or insurance agent gets better by having a manager - broker guide them into their careers in the beginning years.
I was an agent - broker dealer with a top 3 insurance - mutual fund firm in my late 20s. What I did was perform a fact finder, then I brought that to my manager and he brainstormed solutions, then I learned how to do that on my own.
I recommend you find a coach - mentor in San Jose CA to do something similar.
Here are some marketing to home seller forms.
Best of luck!
@Eric Giovannucci You will get your greatest education by doing. The hands on experience will tell you more than any book or forum. Don't let the fear of not knowing enough stop you. I've been doing this for 12 years, and I still learn new things and better ways to handle my business all the time. I just take it as it comes.
I completely agree. I think I need to work with someone in the local area and learn from them. I am one of the many that "hired" a mentor, and find that I am still just as lost as I was in the beginning, just out some money now... If only I found BP prior to that venture.
@Eric Giovannucci We all pay for education in some shape or form. The school of Hard Knocks should be accredited!
i think you will learn most from doing. The hardest part is taking that first step, but if done right will be well worth it in the end.
The sweet spot? Get a text book for RE Agents and know that as an investor, after you understand that, you can look at your market, then you can select the strategy appropriate to your market and your goals. If you begin with strategies you really aren't educated your are trained like a machine might be programed or like a monkey to play the crank organ. If you begin with the basics you'll know more about real estate than most of the people you will meet on the street.
The more aware you become the more you'll come to understand what you don't know. :)
Wow Dawn and Bill give some great advice here.
The REI world is so large it's easy to lose track and change focus often.
Find a strategy that suits you and go for it. You will always have fear, just use it to move forward.
I would be even more scared of what happens if I don't take that chance...
Good luck to you.
Move forward. Don't let fear stop you from success. Choose a path and start walking it. You can always change directions in the future. It never hurts to ask for advice. I always try and ask myself the "what if" scenario and always try and have a plan B. You can be busy living...or you can be busy dying!
Although I've only been seriously considering real estate for a couple months I see myself going down the path of being to overwhelmed to do anything too. I've committed to getting involved in BP, reading the beginners guide and then picking one good book. I'm hoping that will help narrow my focus to start and then to expand from there. Good luck and know your def not the only one struggling with the first step.
Congrats on making the plunge! I think ive been attempting to become active for about a month now, and have completed my first "accidental deal" due to relocation. I have found I am going to work the lease option ordeal while I attempt to gather more knowledge/funds for flipping. My hands are tied as far as working in the field is concerned (on active duty status for a couple more years) but I am looking at getting my RE license as it has been suggested numerous times.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing