I just signed up for this site and I cant seem to get my eyes off of my screen. Anyway, I am new to real estate and I am still trying to get a game plan going. I am 23 years old so I have limited funds. (Around 40k). I started with the plan of trying to obtain a 3 unit multifamily around my area but I cant afford anything around me. My initial plan was to buy and hold, but I really want to invest in as much as I can without tying up my money (I dont know if it is even possible with the very little that I have).
I also want to make a big profit right now that I m young. I have been sacrificing over the past few years to save. I want to live my life and and act my age by going out and just enjoying myself, not by penny pinching and staying in every weekend fearing that if I go out my savings will be disappearing. I want to invest in Something That Is going to give me a good return quick. I was thrown the idea of flipping condos, I know it has its pros and cons but its pretty much the only thing I can afford to flip. At least with the information I have.
These are the two paths that I am trying to choose from. At the same time, how can I go about financing them. I have heard of hard money lenders, I am not sure I can use them for purchasing a multifamily or not?. I have also heard of the 203k loan? How does that work? If I purchase a property for 100k and needs 30k in work? How would I determine accurately the amount I need and how would it affect my loan of 100k. I have many questions. I really want to get myself started with an investment property by mid 2015.
I really want a mentor to show me the ropes. I am very motivated and committed to this. I have gone to real estate classes but I want to invest, not be an agent. I have read books, but I wanted a hands on experience, it makes a huge difference when u read about something and when you actually go through it. I have listened to people like Tai Lopez about how to be successful of over 40 hours worth of his talks. (Very smart, motivating person) I have went looking for investors by going on Craigslist and calling the we buy houses ads and tried being an intern but many dont pay me any attention. I have had some luck by finding an investor in the area of san bernardino. Hes has helped me a great amount by showing me his portfolio and his rentals, but he specializes in D- areas. It was a little scary walking into some of those properties with people looking like they want to stab you. (He introduced me into flipping condos). He is a great guy, but I want to get a bigger opinion on how I should make my first move. I want to make alot of money and I want to do it soon. Please help. I am getting overwhelmed by trying to choose and what I should study. Have a good day.
Welcome. Time to build the foundation below.
Check out the Start Here page http://www.biggerpockets.com/starthere
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Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
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 all the cash buyers (rehabbers) you will need.
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
welcome to the site.
@Paul Timmons thanks for the reply. I will definitely look into all of those links.
@James Wise thanks, looking foreward to see what I can accomplish utilizing this site
Welcome to BP @George Lopez ! Ultimately, your market should determine what you should study. I would spend some time learning your market using zillow.com to determine what is selling and what is being advertised to rent. I would also attend a few of your local REIAs to network and see what they are intersted in! Thanks for introducing yourself and I wish you the best of luck!
@Frankie Woods thanks for the reply. I will surely start paying attention to the small details. I have been to a few rei meetings but it made little sense because I didnt know alot about real estate. I will have to go to pay them another visit soon.
Welcome to the site @George Lopez ! Famous name! haha I'm also a newbie. Have you given thought about out of state investing? I have seen many posts here on BP about that. SoCal can be tough to get good cash flowing rental properties.
@David Padilla haha yeah I get that all the time, its funny when people hear my name and start looking around. Yes I have given it some thought but I have come to the conclusion that I want to be able to physically walk in to my property. I have read a couple books and seen the pros and cons of long distance rentals. im leaning more towards my area, even though I know it will be challenging to get my hands on something
Hi @George Lopez ,
You just made one of the best networking decisions available!
Don’t forget to set up your keyword alerts:
Check out this page to find BP members near you:
And remember a home run is possible but it's the consistent singles and doubles over a long period of time that will make you wealthy. Real estate is not a get rich quick vehicle. Be careful listening to anybody that try's to tell you it is.
Best of luck!
@Brett Synicky I will take advantage of those alert words in just a few moments. Thanks for the heads up. I understand it takes some time, just like you said one here one there. I just want to make sure I make the right decision from the beggining. Its unfortunate that it is inevitable that some we will win and some we will lose, in saying this, I pray that my first one will go smoothly. Thanks for the reply.
Downey, can't hear that name without remembering a very hot summer day and being stuck in a traffic jam that moved a car length every 10 minutes but the real problem is we were behind an open truck of rotting pig carcasses that let out a full force gas attack on all of us around him.
Any way one of the latest buzzes is Condos. I suggest you never think of them for a long term unless you get in at a really really great price. They are the last thing to go up and the first thing to go down. As a quick turnover item I still do that when the price is right. Some I lease optioned and that turned out ok because my buy price was good, and even if they dropped I could get out at a profit, not the one I was looking for but a profit.
I also think you should consider wholesaling as a primary activity and cherry pick those deals that you can add to your buy and hold collection. Also,consider getting your license because you will run into to deals that make no sense to invest in but listing them will produce spendable income and having MLS access is nice. Also in California when your acting as a principle you are not required to declare you are a licensed agent.
You have experienced one of the worst times of traffic with that pig smell. There is a slaughter house by my grandmas house that we pass every time we visit her. We hold our breath for 7 seconds to pass up that unbearable smell. I cant imagine being stuck behind a truck.
As far as condos, my friend recommended me to go to the auction and see if I can pick up something really inexpensive from there. My plan was to fix and flip but I wanted to know in detail as far as the difference between investing in condos and a regular sfr. I know theres fees from the condos, but what else is there to know about it.
When I started I came to the conclusion that having a license wouldnt benefit me, but that was when I was starting out, I now know that it is mandatory if I want to reach my goals. I checked it out. Courses are every Tuesday so I will start this week.
Welcome to the site, I would look into out of state opportunities that's what I did.
thanks @Jesse Alcaraz. . . . I have been looking into Fresno properties with at least 4 units. It was recommended by a fellow investor.
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