To start off, I have no idea what type of response to expect from my question. My Bigger Pockets forum cherry is dunzo!
I am a 25 year old working man. I moved to Nashville from Knoxville after college for my first job. Currently I work for a Healthcare IT Consulting company, and needless to say I make good money. Currently I make around 120K/year and have close to 80K in my checking account. Yes you heard it right.... checking account. I invested some money into a friends oil drilling shindig, but have not done much else.
Due to Nashville's booming real estate market, I have been surrounded by motivational queues to get my butt into this business. It seems like a great new challenge and opportunity to make yourself a comfortable living and overall be in a competitive market where you will never get bored!
My coworkers/friends have already purchased homes for both living and investment purposes assuming the market for these homes will only rise.
Overall, after being intrigued and listening to Bigger Pockets podcast, and I more interested than ever to take my first baby step into the world.
Overall, I have no idea where to start. My thought process now is to read a few books, continue listening to all the Bigger Pockets podcast, and ultimately buy a home or some type of property in the very near future.
Seeing that I have no idea what I am doing, I would love to get some advice and guidance from veterans. So overall, my situation is that I have 80K in my account, making 120K/year, 25 years old living in a booming Nashville real estate market, not knowing what to do with my first actual purchase.
Any advice would be appreciated.
Young Adult Pocket
Here are some questions to help you decide. Do you want to be involved or a pasive investor? How much time do you want to dedicate to real estate? Do you think you would like to..... Wholesale, fix and flip, fix and hold, buy and hold, or sindicate real estate?
I wasn't sure from your post, but have you purchased your own home or are you renting? If you are renting, your first step would be to purchase a primary residence.
If you are looking for investment opportunities, you need to think about what is best for you. Do you want passive investments? Do you have the free time for a flip project? Are you good at project management? Do you enjoy networking and sales? Maybe wholesaling would be an option.
It sounds like you have a good amount of savings readily available for an investment. From what I've experienced thus far, as I am a beginner myself, there are three things that you must do.
1. Decide what you want to work in, albeit temporarily. Buy and hold to rent out for passive income while maintaining a full-time job was my decision because it would allow me to have steady active income and have something to do on-top of accumulating passive income for when I choose not to work.
2. Understand the numbers, namely what the cap rate means and how to calculate cash flow conservatively. Knowing a good deal between the numbers versus a good sales pitch from a realtor could make the very difference between paying $20k a year and earning $10k a year.
3. Once you've checked off the above two points, look at listings. Filter based on your niche then run the numbers. Once you see great numbers, contact a realtor and schedule a visit to the properties that look promising. You don't need to buy every property you visit, but seeing them provides limitless opportunities to learn.
And a bonus: network with people. This cannot be emphasized enough, yet is not absolutely necessary. It can make a world of difference when you know the right people, ask the right questions, and find great friends.
Best of luck!
Two places to frequent the most.
1. Bigger Pockets daily, start with the podcasts and tune into the webinars
2. Local REIA. Show up and see who the players are and offer your assistance. Such as, volunteer labor on a rehab, bird dogging and etc.
Branding your personal image is key to success.
Also, I have found in my experience that it takes 3 things to get moving...
Purpose- Why do I want to be and How do I get there
Persistence-This is the drive factor when the domino's are being stack
Discipline-The center-focused attention to do "The One Thing" that needs to be done for thst day, week and month.
Small incremental success leads to Big Time Results.
Never Ever Give Up if you have a purpose
Are you looking for short or long term goals?
Short Term: Team up as a financier with a pro from your local REIA and flip a house: learn their steps and what they have done wrong in the past.
Long Term: House hack; buy a house to live in, do the work yourself and build a rental portfolio. it takes a ton of effort but learning how much and how long for a job to complete will help down the line.
*Side note, I bought my first house at 22 with little construction experience: if you're willing to live in a construction zone and spend nights and weekends working on the property, the information is invaluable for later projects.
Hey Charley! Welcome to the REI clan and we are glad to have you! I absolutely love Nashville... I graduated undergrad from MTSU and still try to go back to Nash to visit friends as much as possible. I've been there the last two New Year's in a row down in downtown.
Best of luck!
Welcome to Bigger Pockets. BP is full of resources. You will find resources here from blogs to pod casts and forums. You can also send messages to members which is my favorite part of the website.
That is a great perspective approach for a newbie.
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