Shelton, CT · Member since 2015 · 2 posts · 1 vote
I recently decided to become involved with real-estate investing, but before I do anything else I'd like to become knowledgeable on the subject. I've read several books/ blogs and the majority of these suggest the best way to begin is wholesaling. I'm a Business student in my twenties with limited funds, so it seems like this may be the best way to start out.
I'm also interested in purchasing multi-family homes to rent.
So far the biggest questions I have are:
Is wholesaling really the best start for beginners?
Should I stick to my local area (New Haven/ Fairfield County, Connecticut) or consider out of state properties?
How do I find a mentor and establish contacts with others in my area?
These are just a few of the questions I have; it seems like there is an endless amount of information to know on REI. I welcome any feedback that is offered!
Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
11y
Welcome @Account Closed )
3) Getting my RE license helped me accelerate the learning curve in finding good deals (and saved me money), but it's not for everyone and it takes time to get and costs money upfront.
There are also local CT meet-ups that many investors here are part of that offer ways to network with other investors.
Chances are if you're in the real estate investing business to get rich quick, it probably won't happen. However, if you're in this to get rich and can be patient and work hard, I think you will get there.
Lynnwood, WA · Member since 2015 · 32 posts · 5 votes
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Hello, Rebekah! I, too, am also new to Bigger Pockets in my 20's and want to start investing in Real Estate in Washington state. I've also done much research and saw that wholesaling is the best option. Everybody on this forum are great and provide excellent help. I hope for the best!
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
11y
Personally, I don't think wholesaling is the best way to start investing. It's like a 15 year old asking, "Should I learn how to drive by taking a race car driving course?"
Wholesaling requires a lot of skills from all aspects of investing -- analyzing flip deals, analyzing rental deals, estimating ARV, estimating rehab costs, dealing with financing, etc. -- and to be a good wholesaler, you need find BETTER deals than someone who is flipping or renting (since you need to sell to those people at a markup).
Most investors I know who start out wholesaling never do a deal -- it's a tough business when you're experienced; it's even tougher when you're new.
Real Estate Investor · San Antonio, TX · Member since 2014 · 785 posts · 190 votes
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whatever niche you work in, the best chances for success are to team up with an expert in your area. There are plenty of experts mentors out there that won't charge you anything.
Wolcott, CT · Member since 2013 · 139 posts · 49 votes
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@Account Closed Welcome to BP, from a fellow CT Investor. The strategy you ultimately choose should cater to the goals you wish to achieve. Some focus completely on Buy and Hold, some rehab, some wholesale. It comes down to what you're attempting to achieve.
The best way to start taking action is attending our local CT REIA meetings. They're usually in Meriden. It is a great place to meet other local investors who are active in all strategies. You'll be able to network and learn a great deal to figure out exactly what you wish to pursue.
Surfing here on BP is a superior tool to learn the ins and outs of investing
W Hartford, CT · Member since 2014 · 32 posts · 8 votes
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Hi @Account Closed welcome to BP. I'm always happy to see more members from CT. There are some good meet ups of BP members, one in Rocky Hill and one in Fairfield, that are a great chance to learn and network. Let me know if you want the details.
My opinion regarding starting out wholesaling is that it can be a good way to begin gaining experience in real estate that does not require a massive amount of financial investment. However, it is important to master the necessary skills of finding leads, negotiating with sellers, determing ARV, and estimating rehab costs. New wholesalers commonly overestimate ARV and underestimate rehab costs so it is vital to get these numbers right in order to establish a good reputation and provide quality service to your end buyers. Buidling relationships with real estate professionals, such as an agent who can help with ARV and a contractor who can confirm rehab costs, is very wise for a new wholesaler.
Good luck! I hope we get to meet in person at a local BP meet up.
Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
11y
Welcome @Account Closed )
3) Getting my RE license helped me accelerate the learning curve in finding good deals (and saved me money), but it's not for everyone and it takes time to get and costs money upfront.
There are also local CT meet-ups that many investors here are part of that offer ways to network with other investors.
Chances are if you're in the real estate investing business to get rich quick, it probably won't happen. However, if you're in this to get rich and can be patient and work hard, I think you will get there.
2) Reading books. Not surprising, the author of two of my favorite books are actually both on BP @J Scott [who commented above] and @Frank Gallinelli )
Thanks Jonathan...though let me add that for a new investor, I think Frank's book is much more important than mine! Best book out there on intro to real estate analysis...
Shelton, CT · Member since 2015 · 2 posts · 1 vote
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Thank you everyone for the advice and introductions! It's so helpful to have a resource like BP where I can connect with both novices and experts in real estate. It sounds like I have a lot more researching to do before I make any decisions-- @Jonathan Makovsky, I'm going to look into the books by the authors you mentioned.
@Mike Curley, I'd love to find out the details for those meet ups if you wouldn't mind. It'd be great to meet other BP members and investors in person.
Rehabber · Niantic, CT · Member since 2012 · 443 posts · 150 votes
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Welcome, @Account Closed ! The comments that came before me answered the questions quite well, so I won't pile on. The only thing I wanted to add is that you're asking the right questions, and that's important. I'd say you're already ahead of a ton of would-be investors just by having a calm, measured approach. Keep on asking questions, and best of luck!
Investor · Fairfield-New Haven-Hartford County, CT · Member since 2013 · 825 posts · 413 votes
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@Account Closed sure thing I will send you a PM.
Also, if you set-up keyword alerts, you will be notified when a certain buzzword is mentioned in a forum post. For example, if you wanted to know about forums that discuss "Shelton" or "Fairfield County" then you can add those to your keyword alerts and get involved in conversations as they pop-up.
Here is a tutorial on it: http://www.biggerpockets.com/renewsblog/2012/12/19/keyword-alert-system/
Rental Property Investor · Norwalk, CT · Member since 2013 · 276 posts · 147 votes
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Hey @Account Closed
Welcome to BP and real estate investing! It's always great to see new local investors getting involved on BP and starting out their investing careers!
Wholesaling can be a great way for new investors to get started because you can put in a lot of time to find great deals with very small out of pocket expense. That said, it is not easy.
You're definitely taking great first steps getting onto BP and reaching out to local investors. Set up some keyword alerts so you'll hear about the next local meet-ups and networking events.