Interested In Real Estate

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Interested In Real Estate

J Y
Member since 2008 · 23 posts · 0 votes

Hey guys I'm a second year college student whos beginning to show some interest in real estate. The problem is, aside from knowing that a lot of money can be earned if done properly, I pretty much am ignorant in this field. If anyone can steer me in the right direction, I'd very much appreaciate it :cool:

I never knew there's so much to it. I always thought it would be something like:

Buy a house at price X
Rent it out at Price Y
Reap profits

I didnt know there so many legal stuff that you have to go through and so on. Or am i just overthinking?

And real estate agents are people who help owners trying to sell/rent out their house find tenants. But is the real estate agent required at all? Can the owner just do it himself?

Also does real estate have to be a full time thing? Or can it be one that takes very minimal time once started.

Sorry for the ignorance, like i said im new but im learning :wink:

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    Since you are starting at the beginning, I would suggest buying the Carleton Sheets Course and starting there. You can buy one dirt cheap on e-bay if you don't want to spend the money for a new one. It is an excellent beginners course.

    Good Luck,

    Mike

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  • Gary Moore
    Real Estate Investor · Anchorage, AK · Member since 2008 · 63 posts · 3 votes
    18y

    Carlton Sheets? OMG, don't waste your money.

    For wholesaling, you can learn everything you need to know on this or a hundred other free sites.

    Everything, from compiling a mailing list to making your offer to assigning it or doing a double close. Sheets stuff was barely relevant 20 years ago when he retired from investing to peddle his course. Today it is useless.

    I used to wholesale/flip and you can make some really good money at it. However, it is a lot of work. It can quickly become a job you hate but are trapped in because of the money. I kept some of the best deals to rent but even that became a pain.

    Today, I am a buy and hold investor. I specalize in apartments and am much happier than I was wholesaling or renting homes. I have more free time and my income does not drop to zero if I decide to take some time off.

    To your real estate agent question. No an agent is not required. A buyer can buy and a seller can sell without the agent in the middle of the transaction.

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  • Jason Hanson
    Real Estate Coach · Oakton, VA · Member since 2008 · 695 posts · 43 votes
    18y

    Go to the library and check out every book you can on real estate investing.

    Find local groups so you can network with folks.

    You don't need to work with a Realtor to be an investor and I highly advise against working with one.

    Go on e-bay and invest a few dollars in courses and that will get you up to speed on how the business works.

    0Reply
  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    thanks for advice guys. does anyone know if real estate can be done as something that is part time? or do i have to devote full time to it in order to see success? i know the key is to hard work but i'm thinking about going ito real estate as a side thing and depending on how i do i may go full time into it.

    i will def check out some stuff in the library and ebay!

    by the way whats wholesaling? when you say buy and hold do you mean buying a property and waiting until the value rises and sell/rent?

    so are most ppl in this board real estate agent or private owners?

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  • Gary Moore
    Real Estate Investor · Anchorage, AK · Member since 2008 · 63 posts · 3 votes
    18y

    I am a private owner.

    Yes, absolutely start part time and be careful how you replace your primary income. Lot of people end up replacing a job they hate with wholesaling and it turns into, you guessed it, a job they hate.

    Wholesaling is where you find a really great deal and sell it to another investor as a great deal and keep the profit the "really" part of really great deal created. In other words, you buy and then sell quickly.

    Buy and hold means you bought it, rent it out and then sell it later, if at all. I'm not sure I will ever want to sell the apartments I am trying to buy around the country.

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  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    any suggestions on which book to get? preferably cheap ones? i ran some search on ebay and a lot showed up, most of them costly!

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  • Dave Kennedy
    Real Estate Investor · Georgetown, MA · Member since 2008 · 250 posts · 6 votes
    18y

    Gary and Mike....you guys both seem pretty successful (from the posts I've read by both of you).

    But you guys are on the opposite ends of the specturms. It seems like while one answers one way and the other completely opposite.

    Even though you both seem to be in the buy and hold rental biz.

    I guess as the old saying goes..."to each his own"

    I'm just surprised by the different view points.

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  • Gary Moore
    Real Estate Investor · Anchorage, AK · Member since 2008 · 63 posts · 3 votes
    18y

    If we all did things the same it would be a very boring planet.

    I can't speak for Mike, only for myself.

    I make money when I buy. I make much more money when I buy large multifamily.

    I lose money when I try to be all things in my investments.

    If you study the mega successful investors you see they aren't doing the day to day or minute to minute management because they are more effective as investment managers rather than managers of investments.

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    I believe that Gary said in another post that he is new to the buy and hold business. His post in a recent thread says it all to me:

    RIDICULOUS! A big part of being in business when you're new is learning what is real and what is nonsense.

    Mike

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  • Gary Moore
    Real Estate Investor · Anchorage, AK · Member since 2008 · 63 posts · 3 votes
    18y
    Originally posted by Michael Rossi:

    I believe that Gary said in another post that he is new to the buy and hold business.

    No, I said I bought my first multi earlier this year. I did wholesales and kept some as rentals for over five years before getting burned out, selling out and taking a long vacation.

    His post in a recent thread says it all to me:



    RIDICULOUS! A big part of being in business when you're new is learning what is real and what is nonsense.

    Mike

    Jeez! Pull the corncob out of your rear end and lighten up. It is called humor. It separates us from the depressed prozac crowd.

    I was serious with part of that, there is a part of me that likes the fact so many are scared of multis. Hey, I'll let you in on a little secret, I am about to close on a mobile home park in Arkansas. Good money there too and no I won't be managing that one either.
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  • Dave Kennedy
    Real Estate Investor · Georgetown, MA · Member since 2008 · 250 posts · 6 votes
    18y

    Mike.....I think he was just kidding around with the "its kind of lonely counting the money all by myself" comment.

    Hence the little ;) at the end.

    All in good fun!

    As I said to each his own. Both can be successul with different tactics. It depends on your personality and what aspects you enjoy more then others.

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  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    i told my parents about my idea of going into real estate and both adviced me against it. they keep telling me market is bad and a lot of real estate agents are having a hard time, is that true? my gf told me the same as well and she told me a lot of houses arent even selling/renting out right now at all. im clueless, i dont know anything.

    i guess my first priority right now is to learn some basics first, i dont even know many of the terminology yet. secondly i guess i should start saving up money and building credit!

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    That's an excellent plan. The vast majority of newbies fail in a short period of time because they don't understand the business. Learning the basics puts you head and shoulders above that group.

    They are correct.

    That depends on the market. In many markets, houses are selling very slowly. However, in many markets, rentals are doing great. What your family fails to understand is that although the real estate market is generally bad, this is also a historic opportunity to buy real estate at a huge discount!

    Good Luck,

    Mike

    0Reply
  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    thanks for the tip mike

    im currently thinking about starting off with the book by wendy patton, is that a good one?

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    Any "guru" material is mostly good for motivation and for getting the basics of a specific technique. Just remember that the "gurus" main purpose is to upsell you to a more expensive product and you will therefore only read the positive side of the business. I have yet to see or hear a single guru talk about the difficulties of the business or discuss the truth about operating expenses, cash flow; or other serious matters.

    Having said all that, you will certainly read many books and articles while acquiring your education and starting with one book as opposed to another isn't terribly important. My recommendation is still to start with the Carleton Sheets Course. I like it because it is quite comprehensive and presented in a logical manner. I would venture to say that more successful investors started with Carleton Sheets than any other guru course. Contrary to what is often said, there is really nothing new in real estate investing. Real estate ownership has been around for thousands of years and, other than a fad here and there, nothing is new.

    Good Luck,

    Mike

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  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    ah good point. i will check that one out as well. you have been very helpful. thanks mike!

    0Reply
  • J Y
    OP
    Member since 2008 · 23 posts · 0 votes
    18y

    there are a lot of stuff i found for carleton sheets. should i get the no down payment one? its mostly casettes, dvds, and all, is there a book for it?!

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  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    18y

    Most "home study courses" are on DVDs and CDs these days. I guess that makes the prices more palatable than if they were just books.

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  • Michael Rossi
    Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes
    18y

    JY,

    Yes, I would get the "No Money Down" course and be sure to get one with all the optional DVDs. When I bought mine years ago, if you paid in full up front, you got these optional DVDs free and they are excellent. The point is that if you're buying a course off E-bay, try to get one that has as many DVDs as possible.

    Good Luck,

    Mike

    0Reply
  • Fred Shandler
    Real Estate Investor · Jersey City, NJ · Member since 2008 · 203 posts · 1 vote
    18y

    Read Mike's book too!!! I've read it multiple times and constantly reference it for information. I came away extremely informed.

    -Fred

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  • Account Closed
    Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    18y

    I called my local B&N yesterday morning and ordered Mike's book. I got an email a few minutes ago from the manager that it arrived at the store in the overnight shipment. I will pick it up this morning.

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  • Matt DuSold
    Lender · Phoenix, AZ · Member since 2008 · 351 posts · 40 votes
    18y

    It's a great book I just finished it. I will actually be getting Wendy Patton's book next!

    0Reply
  • Gary Moore
    Real Estate Investor · Anchorage, AK · Member since 2008 · 63 posts · 3 votes
    18y
    Originally posted by Taz:
    I called my local B&N yesterday morning and ordered Mike's book. I got an email a few minutes ago from the manager that it arrived at the store in the overnight shipment. I will pick it up this morning.

    Are you going to post a review of it?
    0Reply
  • Michael Shadow
    Investor · Bellefonte, PA · Member since 2008 · 1k+ posts · 88 votes
    18y

    I second MikeOH's book. I've read it at least 3 times and loaned it out to a friend who started reading it and bought it because he wanted to mark it up. It has great reference material in it too.

    His blog is also great. You have to start at the end of it and read it up to the current date. He has basically written a diary of what his life is like as a landlord.

    -Michael

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  • Account Closed
    Manhattan, NY · Member since 2008 · 801 posts · 61 votes
    18y
    Originally posted by Gary Moore:
    Originally posted by Taz:
    I called my local B&N yesterday morning and ordered Mike's book. I got an email a few minutes ago from the manager that it arrived at the store in the overnight shipment. I will pick it up this morning.

    Are you going to post a review of it?

    No.
    0Reply
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