The 5 Best Pieces of Advice I Can Give

15 Replies

As a newbie investor (been around the business for 25 years but just got started on my own) there is no shortage of advice from "seasoned" investors.  Every place you turn there is someone waiting to tell you some "exclusive" information that will "help you grow your business". IT'S OVERWHELMING!!

Here are the top 5 pieces of advice that I'd give a newbie investor:

1: Do what works for your situation!!! If you are shy, don't want to quit your job, have children, are married etc. then you must take those things into account before choosing an investing strategy. For instance, if you have a great paying job that you like then why be a wholesaler? You could just as easily collect passive income by owning property with cash flow.

2. You will NEVER know everything so don't worry about it. Most problems can be fixed with minimal hurt, heartache, tears, or cash. You are always going to run into a problem that you don't know how to solve. That's why you have to learn on the job. Network and find people who are experts in your niche. When you run into a problem, just call them. Don't forget to compensate them for their time/advice. No one will keep answering your questions if you don't seem appreciative. Even if you just take them to coffee and send them a thank-you card, appreciation goes a long way.

3. Some people are just negative so utilize them when you MUST but don't spend too much time with them. Experienced jaded investors can suck the life and motivation out of new investors. You can't move forward if you are always whining about the present or the past so don't let those soul suckers be in your life for long. Nothing worse than someone reminiscing about the "good ole' days" and how "there's no deals anymore."

4. You have to work hard and/or long if you don't have money. If I had a dollar for every guru who advertises to "spend your spare time investing and make millions with NO MONEY DOWN" then I wouldn't have invest in real estate. Look people, (MILLENNIALS I'm talking to you), either you have the money or you have the work ethic. PERIOD. You cannot spend 4 hours/week investing in real estate unless you already have a good chunk of money (50k or more in my area) to start with. Then you could go buy some cash-flowing properties or flips and life would be easy. Either you will spend your time networking, marketing, looking at 2 dozen properties/week, or GCing your rehabs but whatever you do IT WILL TAKE LOTS OF TIME.

5. Don't give up. It may take time to find that first deal. It may takes months or even a year but you can't give up. You can and should re-strategize if you see something isn't working (don't do that too often) but don't just stop. I listen to audiobooks and podcasts about real estate to stay motivated when I feel like things "just aren't working" and it helps.

I hope this info helps newer investors. You get the benefit of my experience as a newer investor who has listened to and read over 300 hours of advice.

Overall good advice. You don't need a lot of cash to get started; you can do a flip with 5k to start in the right market. 

There is also a lot of negativity among experienced investors. You will see it sometimes on this board. I won't name names, but I have seen the same people on many threads dumping cold water on investors who don't do what everyone else does. They should be ignored, and the serial offenders reported. 

Wow! Thanks @Raechelle Carroll awesome advice! I'm a newbie investor and I can really identify with dealing with the negative Nancy's and losing steam after not having found my first deal. This was exactly what I needed to read this morning. Thank you!

I've also been criticized for not doing what others do on this board.  Whatever. I love what I do and it helps my community. 

I also will add this - any new investor should find a good FREE mentor to help them in their niche and market. It's possible, I did it. My mentor sends me great deals that make me money, and he teaches me his niche of distressed properties with owner financing. he makes money off me when I buy deals, so it works for both sides. I also help him with various administrative and gofer type tasks. 

@Rachel Gill I'm happy I could get you motivated this morning. It's hard when you feel like nothing is going your way, or even worse, when nothing is happening at all. 

@Account Closed ","user_avatar":{"medium":{"url":""}}}" href="/users/JimP6">@Account Closed What do you mean by flip? yes you can definitely wholesale for 5k. Heck you could wholesale for $500 but I haven't yet seen a rehab that only took 5k. If it only need 5k then retail buyers usually snap it up quick. Especially in my market.

@Joe PickettI think the mentor thing has been said and said again and again...and again lol. That's why I decided to leave it out but I alluded to it when I spoke about finding someone in your niche. People often think that because they are new they have nothing to offer an experienced investor but except money. TOTALLY LIES!! You can JV, do administrative work, do his/her taxes, shine his/her shoes, babysit, wash dishes etc. etc. etc. EVERYONE has SOMETHING to offer.

Yes ma'am, if you have something to offer your mentor, you can be mentored for free in some cases. 

I've also done quick flips to other investors in my market for a 5-10k profit, just a clean up of the property. It works where I am. 

Thanks, since I focused on real estate investing, I began talking to people at work about it. I got in contact with five people I know nothing about. An Exec, business owner, attorney, realtor,  and a loan officer. ...I don't plan on getting a house too soon, not until I get solid foundation. 

This post is very useful and inspiring for ME personally. 

Originally posted by @Account Closed :

I've also done quick flips to other investors in my market for a 5-10k profit, just a clean up of the property. It works where I am. 

 Do you happen to have a blog about this? I would be interested in knowing how you did it. if you have before and after pictures I would like to see those as well... (I like visuals). 

Thank You :)

this is in the 78214 zip. 40k purchase, 50k sold price. Basic clean up, still needs rehab when I sold it. 

after, just cleaned it out, knocked out some walls, cleaned the yard up. No paint. 10k profit. 

@Raechelle Carroll Thank you so much for your advice ! you really have inspired me.

I just found this forum last night, and I think this chat room will be my secret weapon in many future investing deals.

Being a newbie in investing after just paid HUGE bucks to sucess path ( a branch under Premium Financial Training: ) , I am just so overwhelmed with the knowledge I just received from the millionaire seminar speaker boot camps training, it made me think doing real estate investing is easy and profitable, but after I trying to do some basic stuff i.e.: finding properties , analyze deals, found out, hey ! this is not easy at all !! So, been given such a high hope and later realized this is not true, I have spent a couple of days to readjust my anticipation / mind set and basically feeling a bit frustrated....

I really thank you @Raechelle Carroll for your great advice, your advice answered many of my worries and helped me understand the " reality truth " .

I am hoping to start out as a wholesaler, rehabber, and looking forward to connect with likeminded !

@Debbie Lee I understand how you feel. Analysis paralysis can easily set in if you let it but you just have to keep going. I analyze every deal I come across. Even if I have no intention of doing the deal I analyze it from all three angles, rehab, wholesale, and buy and hold. Doing this on a regular basis gives me a lot of practice so that when a "real" deal comes along I will be ready.

Just keep working and you will eventually find a deal!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you