First time investing? What do you think?

6 Replies

Hey, so you want to start investing in real estate, but you have no experience. You have read books on real estate investing, but you have not done any yet. What do you think is the best way to get out there and invest in real estate? What type of investment do you think is the easiest of the bunch, and will give you experience (even a tip of the iceberg).

Talk to and build relationships with realtors and property managers.  Get out there and start looking around.  What's available? Get comfortable figuring out net yields on properties and determining which properties are better deals than others.  Learn about tax auctions in your area.  Go look at some properties. 

When you're ready to take the plunge, JUST DO IT!  Accept that you will make mistakes along the way, but that's okay.  We all make mistakes.  Learn from them and move on.

Unfortunately, there is no easy path. Sometimes the path we choose does not end up being what we thought it would be. As @Sharon Vornholt  says, "Sometimes, the path may choose you." Though, this will only come through experience. Best of luck! 

@Ben Berkovitz ,

Welcome to the Best Real Estate Site on the Net.
Click on the "learn tab" at the top of the page, and you could be spending many hours on the Information that is available.


Raymond

I focused on strategies I was willing and able to do.  Do you have access to money through your good credit and connections?  Buy quick deals and assign/wholesale maybe.  Do you need to be creative with little or no money down?  Apt and multi owners tend to be more open to that.  Do you want to buy and hold, deal with tenants, leases, etc.  Check out SFRs and try some sandwich lease-options or just buy a bread and butter has in a B neighborhood.  Learn your market.  Their is great info here on BP but RE markets are always local.

I was talking to another BP member by phone earlier today, and basically this question came up. Well, it was what do I think of this specific niche that they were interested in. My advice was this.

"Make sure you understand what you are getting into. Know the ins and outs, pitfalls, and rewards. Understand the questions you will be asked, and be able to answer them. And as long as you are certain that you understand your "niche," act on your knowledge! Even the gurus made mistakes, and most likely you will too. Just make sure that you recognize the mistake and learn from them, so you won't repeat the mistake in the future. Over time you will establish yourself as the go to person of the specific "niche" that you are in. In return you will be profitable."  

Later in our discussion, we got into some semantics of the niche. To me it was somewhat linear in a thought process. So, I commented on a thought I had, and the other person had never thought of doing what I suggested. Of course other questions arose, of which I can honestly say I wasn't sure of the answers. I suggested that they research it to see if I actually found them a viable option to pursue.  

Once again, the point was act on your specific course of action. As long as you don't violate laws, the details will fall into place. If your unsure, ask for help. The great thing about BP nation, is if you ask the right question, you will get the right answer eventually. I say eventually not to mean that it's bad advice. What I mean is that some responses may not apply to your specific situation, or may be addressed differently based on geographic areas, and so forth.

You can never stop learning, but at some point you have to take an educated plunge.  Your first deal is by far the hardest.  

Find a local mentor in your REIA group. Learn the area(s) you want to invest in. Find an agent to help you understand the after repaired values in your preferred area. Go where they are - at open houses.

If you see a house under rehab, pull over, go in and introduce yourself and observe what they are doing. Ask questions.  I love books so ready books, but you have to get out from behind the book.

Sharon

Medium propertysolutions1 blueSharon Vornholt, Innovative Property Solutions | [email protected] | http://LouisvilleGalsRealEstateBlog.com | Podcast Guest on Show #12

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