If you could get in touch with yourself when you were first getting started investing in real estate, what would you say, and what advices would you give yourself?

16 Replies

Buy something. Think less. Do more. Don't be so incredulous that a bank would give YOU money. They're giving everyone money.

You don't need to make money from your first deal. You just need to learn and not loose your pants.

oh yeah, it's not important to make money on your real estate bud! Whether it's the first or the last deal I do. 

I like to work for free too. Wow, what great and sage advice. I thought we were all here to make money on our deals. Gosh....the mind boggles. 

Educate yourself on the nuances of investing.

Diversify. Don't put all your eggs in one basket and believe everything  you read here. 

Good luck. 

Believe in yourself. Don't be afraid to ASK for what you want, and CLAIM it in advance!

Surround yourself with people who believe in you and your vision - you'll need them when times get rough. 

These are probably applicable to life in general, but I've found them especially helpful for real estate as well :)

Originally posted by @Bram Spiero :

Buy something. Think less. Do more. Don't be so incredulous that a bank would give YOU money. They're giving everyone money.

You don't need to make money from your first deal. You just need to learn and not loose your pants.

 It is imperative that you DO make money on your first deal...or they may not be a second.

@Joe Villeneuve , is it? What's more important, making a profit or getting an understanding for the mechanics of REI? In the beginning that is.

I'm not saying you shouldn't make a profit, nor should you plan not to make a profit, but I think that as long as you don't loose money and you've learned something, then you're ahead.

There comes a point where you have to take action and more thinking and planning will only impede learning the ropes/

Originally posted by @Bram Spiero :

@Joe Villeneuve, is it? What's more important, making a profit or getting an understanding for the mechanics of REI? In the beginning that is.

I'm not saying you shouldn't make a profit, nor should you plan not to make a profit, but I think that as long as you don't loose money and you've learned something, then you're ahead.

There comes a point where you have to take action and more thinking and planning will only impede learning the ropes/

 Yes...it is imperative that you don't lose money on your first deal.  It is the springboard to the rest of your deals.  Most, if not all, investors starting out have limited resources.  If you lose money on your first deal, you have nothing to move onto deal number two with, do you?

I agree that learning on every deal you do is important, but don't ever go into a deal accepting the concept that it is OK to lose money.  There are deals you may lose on, but NEVER accept the idea of losing money on a deal is OK.

:-), so we mean the same thing. I meant, not make a profit. I did not mean lose money. 

If you can't show how the deal makes sense before you do it, don't do the deal.

If your P&L is based on speculation or wishful thinking, don't do the deal.

If you don't have multiple exit strategies, don't do the deal.

However, if the only way you are going to be willing to invest is when you have guaranteed returns, then I think you're in the wrong business. This is investment, not lending.

I would have networked and worked harder to partner with other professionals early on.  Would have been much easier if I had that quality realtor, BK & probate attorney, process server and mail carrier bird dog, etc.  Going solo was rewarding but harder than it should have been!

Focus on the fundamental. I wish I'd studied more about title early on. I avoided it for years but it came to become a strength, not a weakness (still surprises me today almost 40 years later).

Marketing and lead generation is where it's at. You need Dealflow to survive and prosper. Figure out what makes a deal and market to generate a strong deal flow. Don't waste any time with people who do not meet your deal criteria. You do have a deal criteria, don't you?

I made major progress when I stopped working on marginal deals. While I somewhat agree with @Bram Spiero , I'm not inclined to spend time on an opportunity for which there is not a clear benefit. I don't have to look for problems as my marketing does that, but by its nature it attracts problem people. Argghh. 

One way or the other, you're going to get an education. 

You won't make no dough if you ain't got no flow.

Plan your work and work your plan, but don't plan the results!

Be more conservative with your numbers.  Assume things will go wrong at the beginning and you will be much happier later on when they only kind of go wrong.

Be patient.  Yes its been a few months and you haven't found a good deal.  Better to wait to get a good deal and jump the gun and regret it later. 

It only takes a few good deals to make you and a few bad ones to break you

Thanks for all the advice, I am beginning and I need to hear all of your advice. What I am taking from this is be patient, make some positive cash, learn from the experience, and don't waste time on marginal deals. Thanks everyone. Don