Picking the right strategy to start with

8 Replies

I am a new real estate investor in the South Florida area. I just got out of the military a few months ago and i'm currently going to college. I have no debt and have a good amount of capital, over 20K to invest in real estate. I have attended seminars, and have read books on real estate investing. And yes, iv'e listened to most of the Biggerpockets podcast which are great! I'm just having trouble picking the right strategy to start with. Lease options/ subject to, and creative strategies interest me the most. I like the idea of cash flow. I really don't see too much risk in these areas, but I don't know what I don't know which scares me. I can't seem to find too many investors in my area who are currently focusing on this niche, so I don't have someone to shadow. Should I begin my real estate journey with lease options/ subject to? They certainly interest me the most. Any feedback would be great! Thanks for reading.

Everyone has their own "strategy" the only person that knows what is right for you is you!

That being said we got started with buy and hold through using our VA loan to buy a personal property.We bought a total fixer upper and rent it out when we were transferred. We had alot of friends who rented out rooms therefore living rent free while they continued to save for the next investment.

The types of creative investment are great, the key is to make sure they work in your situation. We are buying in a class A niche that doesn't have alot of equity in it. That's why we have learned to specialize in short sales. 

That all being said, every deal you will do after the first one will be different. The key is to get started. If you hold out for the elusive home run, you will miss out on alot of other great home, that together would add up to better than the "one" home run.

@Account Closed   I would say forget capital....look at getting into the arena that fits you best...and starting off, I'd say take the least risk possible to learn the market and flow of things. 

I suggest lease options and wholesaling to start off, as they require no risk or capital. 

Thank you for the tips. @Elizabeth Colegrove I plan on using my VA loan to buy a duplex, live on one side rent out the other. I'm actually working on that now. I am not looking for the home run, honestly I don't really care to make money on my first few deals the experience will be well worth it. Thank you for the advice.

@John Jackson  I agree 100%, thank you for the feedback.

So, you went to see some war movies, read about history of tactics, and think you can take command of the battlefield without going to basic training...... ;)

Strategies are to fit the situation and circumstances, they absolutely are not some step by step matter to go into battle with. That's like only having claymore mines and trying to go on the offensive in battle. You only have one tool and in all the property deals you'll be trying to fit square pegs in smaller round holes.

You need to learn real estate first, after you learn the basics then you can learn different strategies and you'll understand that you need to map out a strategy that fits the battle plan, not the other way around.

Go to basic training first, then go to AIT, then go into the market and do what the market requires. The market and the circumstances define the strategy, the strategy does not define what you should be doing. :)   

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

@Account Closed  I am on a similar boat. Although I already own my primary residence, I am now looking for a multi family property to invest my capital a long with a couple other investors who are also interested. I have also done my research, read the books, listened to podcasts, and seen a few properties. Although the books and podcasts are super helpful, I have found that the best way to learn is to go out there get in contact with realtors and other investors, figure out how the numbers work, and network as much as possible. By no means am I a season investor but I found that to be the most efficient way to gain knowledge.

I am also located in South Florida (Miami-Dade) and I have a few duplexes in sight that my team and I are doing the numbers to see if they have the returns we want. Look forward to seeing you around the forums and if you want to talk more feel free to let me know.

Well, I know John knows this and may have been overlooking risks, but there are risks in doing an option, depends on the option and situations. Now, as to wholesaling, gurus simply mislead or aren't aware of the risks, as usually shown there can be significant risks, ask the wholesaler BP member in FL who posted about getting nailed about 6 weeks ago!

Risks can be mitigated with knowledge, jumping in to just a strategy won't let you come close to understanding your risks.

There are risks of loss in all strategies, there are risks of getting hammered for violations of law, risks of being sued and market as well as financial risks and uninsured losses. Not meaning to scare folks off, but be realistic, if there is any chance of profit there is risk involved. In real estate the risks can be considerably more than the upside sense it is a highly regulated industry, more so than most, especially if you get into financing. :) 

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

@Jason Michaels

Welcome. Thanks for your service.

Check out the Start Here page http://www.biggerpockets.com/starthere

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.

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good luck

Paul

Thank you everyone for the feedback. I am taking the time to learn the business, I wouldn't go to war without basic training like Bill stated. I do attend a few REIA groups in the area and do learn and network every time I go. I understand there are risk to everything, I just want to mitigate it as much as possible.

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