This stuff is very hard for me (Investment Stories?)

Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes

10y

Find a local real estate meeting that doesn't cost money or host sales presentation. Start learning and talking. You will find people will be happy to help you.

4 Reply

Jeff Barber

Investor · Jonesboro, AR · Member since 2016 · 11 posts · 53 votes

10y

Honestly, sell the car and save that payment if you want to hurry on your first investment. Consider a single family house or duplex and live in one side and rent the other. Be your own property manager for the first several years to learn the basics. Devour landlording books, websites, and find mentors in your area. You are the only thing holding you back. The car is a pride thing. Sacrifice now and it will pay off large, later. Good luck to you!

18 Reply

Damion Byros

Mckinney, TX · Member since 2015 · 86 posts · 11 votes

10y

I would say this first Don't ever give up on your goal you can make it happen . I'm 19 and loved reading rich dad poor dad and yea I agree with you the strategies can be quite overwhelming I'd say best thing is to pick one or two mentors and take some of their techniques and mix and match to formulate something your confident in You can do it keep expanding your knowledge you'll get their in no time It doesn't have to take 30 to 40 years to become a millionaire you can do it with real estate quickly with the right moves . Wether it's flipping , getting good rentals or starting a big company

1 Reply

Sarah Ziehr

Real Estate Broker · Chicago, IL · Member since 2015 · 531 posts · 266 votes

10y

If you are good at sales, I would recommend working in sales for a while, even a year. Save as much as you can. If you are as good as you say you are, you'll have $100k saved after year one and will have more cash to invest with.

As far as what avenue to take, I think you have to do what interests you. There are lots of different ways to go and I find that most investors I work with have a preference that excites them and also balances their comfort level.

Good luck!

3 Reply

David Faulkner

Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes

10y

Welcome to BP! You are in a great situation being ambitious, young, single, no kids, and flexible ... yes, starting out is very difficult as it can take years before you start to see the fruits of your hard work, especially before you lock down your first investments; just have to keep at it and have faith that your hard work will pay off in the long haul, so long as you keep at it.

You mentioned sales ... I know you said you weren't feeling car sales, but were really good at it. What about getting your license and giving RE sales a go? Commissions on a house are much better than commissions on a car. Plus, if you are passionate about it, and come from a genuine place of wanting to help people do what is in their best interests, that will shine through and form the basis for a very rewarding career. Plus, you will learn & earn in the meantime, as well as have direct access and network in the business.

Beyond that, I'd advise to focus on mastering your personal finances first ... from your comments on saving $10k yet having $25k car loan, I'd say you are on the right track but still have some work to do. Investing in RE is not so different from personal finance ... it is just analyzing and managing income & expenses, just done on a larger scale and with leverage. Read "The Millionare Next Door", more millionares drive 10 year old cars than fly jets, that's how they got to be millionares and stay that way ;)

Finally, agree that in your situation house hacking is a great way to get into your 1st property. 1-4 units that needs work, will cash flow, yet in a great neighborhood of single family homes, that you can get a great deal on and add value to. Move in, fix up, rent rooms &/or units, buy another, move in ....

3 Reply

Steve Vaughan

Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes

10y

I just kept it super simple in the beginning, Antonio. I found a house at a good deal, put a little carpet and paint into it and rented it out. Then again, maybe with seller financing. Then a plex. Then a mixed use commercial bld. Now an offer of over 600k is thrown at me and I don't know what to do,

What I do know is I didn't finance a car whose vale drops 'like a rock' to build wealth. That's where Chevy got that lol.

Thanks for introducing yourself. Glad to have you! Be sure to check out the free how-to guides under Education. Read and learn! Check out the podcasts, too. ID one niche you like and master it!

3 Reply

David Dachtera

Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes

10y

Originally posted by @Antonio Evans:

Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!

Well, I certainly would never disparage your ambition. By all means, keep it, build a fire under it and keep it alive!

One of the first aspects of life you'll need to learn is the difference between the way W2 people think and the way "wealthy" people think, what ever "wealth" means to you - something you'll need to decide at some point.

In a nutshell, ...

W2 people work for money. Wealthy people learn how to make money work for them.
W2 people find ways to "save" (read: not spend) money. Wealthy people look for ways to invest money for income.
W2 people value money more than time. Wealthy people know time is their most "expensive" yet profitable asset.
W2 people spend money, like you and your new Impala. Wealthy people invest money for income, or for tax deductions (read: profit increase). Can you find a way to make your car a write off?
W2 people want to own stuff. Wealthy people prefer to control stuff their business entities own. You'll need to get comfortable with controlling assets rather than owning them. Also, understand that income property is not a true asset - the tenant who pays the rent is true asset, the property itself is a liability, especially when its vacant.
W2 people want to own stuff that's paid off. Wealthy people want to control stuff they can leverage (sanely!).

That's a very brief overview of a much larger topic.

The point about strategies is this:

Perhaps you've heard it said that when the only tool you have is a hammer, everything looks like nail. People study subject-to and think it will fit every property they look at, for example, or fix-and-flip, or buy-and-hold, or ...

When you understand many strategies you can approach a property and instead of trying make it fit the strategy(-ies) you know you can determine what strategy best fits the property. If the best fit for a property is one you're not very good at, but you know someone else who is, that becomes a relationship-building opportunity. RE is a people business, first and foremost.

Hope this helps.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict

8 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Steve Vaughan:

I just kept it super simple in the beginning, Antonio. I found a house at a good deal, put a little carpet and paint into it and rented it out. Then again, maybe with seller financing. Then a plex. Then a mixed use commercial bld. Now an offer of over 600k is thrown at me and I don't know what to do,

What I do know is I didn't finance a car whose vale drops 'like a rock' to build wealth. That's where Chevy got that lol.

Thanks for introducing yourself. Glad to have you! Be sure to check out the free how-to guides under Education. Read and learn! Check out the podcasts, too. ID one niche you like and master it!

Thanks for your post! Yeah I would like to take your route and be simple as possible! This community is defiently what I need to help me get going. Thank You

1 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @David Dachtera:

Originally posted by @Antonio Evans:

Im 25, 35k a year. 60,000 (25k car 35k student loans) in debt. I work for my capital. Parents don't help me live. My main purpose into educating myself about finances is to build wealth. I want to be a very wealthy person. Now, your objection to the previous statement should not be jealousy and is not needed. I know my worth and my intent. Don't reply to this topic denouncing my dream of wealth. My goal is to save 10k. I am already half way there but I don't know what to do when I get it. Some say the multifamily strategy, the buy land and put trailers on it strategy, to don't invest in mutual funds(rich dad poor dad). I stay in brookhaven, ms but i do plan on moving I'm just not sure where (I'm open with no kids and not married) There are many success stories and me reading rich dad poor dad has me interested in real estate. I have a degree in advertising & marketing but i don't like sales even though I sold 5 cars in my first month with no experience. Sales aren't my thing even though my dad done it for 30+ years. My problem is being overwhelmed with all these investing strategies people think is best to build great wealth. I don't know where to start. the information is so overwhelming I FEAR that I won't get started because I don't know where to start. I do want to own a jet one day (don't discredit my dream lol) My credit is ok, thus buying a 2015 impala with 2.4% interest rate. I just need your opinion or advice on HOW TO GET STARTED? Also, your first investment stories will give me life. PLEASE HELP!!!

Well, I certainly would never disparage your ambition. By all means, keep it, build a fire under it and keep it alive!

One of the first aspects of life you'll need to learn is the difference between the way W2 people think and the way "wealthy" people think, what ever "wealth" means to you - something you'll need to decide at some point.

In a nutshell, ...

W2 people work for money. Wealthy people learn how to make money work for them.
W2 people find ways to "save" (read: not spend) money. Wealthy people look for ways to invest money for income.
W2 people value money more than time. Wealthy people know time is their most "expensive" yet profitable asset.
W2 people spend money, like you and your new Impala. Wealthy people invest money for income, or for tax deductions (read: profit increase). Can you find a way to make your car a write off?
W2 people want to own stuff. Wealthy people prefer to control stuff their business entities own. You'll need to get comfortable with controlling assets rather than owning them. Also, understand that income property is not a true asset - the tenant who pays the rent is true asset, the property itself is a liability, especially when its vacant.
W2 people want to own stuff that's paid off. Wealthy people want to control stuff they can leverage (sanely!).

That's a very brief overview of a much larger topic.

The point about strategies is this:

Perhaps you've heard it said that when the only tool you have is a hammer, everything looks like nail. People study subject-to and think it will fit every property they look at, for example, or fix-and-flip, or buy-and-hold, or ...

When you understand many strategies you can approach a property and instead of trying make it fit the strategy(-ies) you know you can determine what strategy best fits the property. If the best fit for a property is one you're not very good at, but you know someone else who is, that becomes a relationship-building opportunity. RE is a people business, first and foremost.

Hope this helps.

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict

Thank You David. My car was a purchase prior to my understanding of assests and liabilites lol but by all means I will take care of that responsibility. I like it when you state to find the strategy to fit the property. I will take a learn from that statement. Thank You

0 Reply

Dawn BrenengenBusiness Member

Moderator

Real Estate Broker · Raleigh, NC · Member since 2014 · 2k+ posts · 1k+ votes

10y

@Antonio Evans There are a lot of great books to help keep your mindset focused. I enjoyed Secrets of a Millionaire Mind as one of my more recent reads.

Also, you need to drive that car for the next 15 years. It was a mistake to buy a car that expensive when you only make 35k. My last car was $17k (paid in cash), and I earn 5x your salary. I need that extra money to close on another investment property this year.

We all make these kinds of financial mistakes, though, and we realize what we could have done with that money as we get older. Mine was trading out of cars too early. I should have kept each of my cars a few more years than I did, but I got bored, and I wanted a new toy. That has cost me a LOT of money over the long run, and I won't do it again.

If you are good at sales, you might want to go back into it. The awesome thing about sales jobs is there is no ceiling on how much money you make, and your income is a direct reflection of how much effort you put into it. Maybe try something different than cars? You sound like you have big dreams, so go make it happen!

Podcast Guest on Show #101

1 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @David Faulkner:

Welcome to BP! You are in a great situation being ambitious, young, single, no kids, and flexible ... yes, starting out is very difficult as it can take years before you start to see the fruits of your hard work, especially before you lock down your first investments; just have to keep at it and have faith that your hard work will pay off in the long haul, so long as you keep at it.

You mentioned sales ... I know you said you weren't feeling car sales, but were really good at it. What about getting your license and giving RE sales a go? Commissions on a house are much better than commissions on a car. Plus, if you are passionate about it, and come from a genuine place of wanting to help people do what is in their best interests, that will shine through and form the basis for a very rewarding career. Plus, you will learn & earn in the meantime, as well as have direct access and network in the business.

Beyond that, I'd advise to focus on mastering your personal finances first ... from your comments on saving $10k yet having $25k car loan, I'd say you are on the right track but still have some work to do. Investing in RE is not so different from personal finance ... it is just analyzing and managing income & expenses, just done on a larger scale and with leverage. Read "The Millionare Next Door", more millionares drive 10 year old cars than fly jets, that's how they got to be millionares and stay that way ;)

Finally, agree that in your situation house hacking is a great way to get into your 1st property. 1-4 units that needs work, will cash flow, yet in a great neighborhood of single family homes, that you can get a great deal on and add value to. Move in, fix up, rent rooms &/or units, buy another, move in ....

Yeah I talked to a real estate broker here in my area. He mentioned that the successful people that he knows are all real estate brokers in the industry. So he said if he was me he would go broker but he also mentioned that getting my license wasn't a bad idea either. It just depended on what my "goal" was. Yes I agree, I have a lot of work to do with my personal finances but Im in the industrial industry now. I don't sale cars. Your mentioning of millionaires driving cars then flying jets is an eye opener. I will keep that in mind with the cash flow really start coming in... Thank You

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Dawn Brenengen:

@Antonio Evans There are a lot of great books to help keep your mindset focused. I enjoyed Secrets of a Millionaire Mind as one of my more recent reads.

Also, you need to drive that car for the next 15 years. It was a mistake to buy a car that expensive when you only make 35k. My last car was $17k (paid in cash), and I earn 5x your salary. I need that extra money to close on another investment property this year.

We all make these kinds of financial mistakes, though, and we realize what we could have done with that money as we get older. Mine was trading out of cars too early. I should have kept each of my cars a few more years than I did, but I got bored, and I wanted a new toy. That has cost me a LOT of money over the long run, and I won't do it again.

If you are good at sales, you might want to go back into it. The awesome thing about sales jobs is there is no ceiling on how much money you make, and your income is a direct reflection of how much effort you put into it. Maybe try something different than cars? You sound like you have big dreams, so go make it happen!

Yeah I should have been more clear on my occupation. I mentioned sales because that is what real estate is really but Im in the industrial industry. I can really make upward to 80k but I didn't work that much last year so that is why I base my income on a lower level than what I can actually make but I do know that getting the car was a mistake but it was a parent pressure buy because my dad sold it to me.

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Sarah Ziehr:

If you are good at sales, I would recommend working in sales for a while, even a year. Save as much as you can. If you are as good as you say you are, you'll have $100k saved after year one and will have more cash to invest with.

As far as what avenue to take, I think you have to do what interests you. There are lots of different ways to go and I find that most investors I work with have a preference that excites them and also balances their comfort level.

Good luck!

Thank You. Im in the industrial industry. Not sales anymore but it was fun dressing up everyday and challenging myself.

0 Reply

David Beckley

Investor · Saint Louis, MO · Member since 2015 · 204 posts · 37 votes

10y

Read Brandon's book "Investing with No (Low) Money Down". If you pick up a few of those strategies, you will be well on your way to amassing wealth. Young and no kids, you have the right foundation to get started right away.

1 Reply

David Faulkner

Investor · Orange County, CA · Member since 2015 · 2k+ posts · 3k+ votes

10y

Originally posted by @Antonio Evans:

Originally posted by @David Faulkner:

Welcome to BP! You are in a great situation being ambitious, young, single, no kids, and flexible ... yes, starting out is very difficult as it can take years before you start to see the fruits of your hard work, especially before you lock down your first investments; just have to keep at it and have faith that your hard work will pay off in the long haul, so long as you keep at it.

You mentioned sales ... I know you said you weren't feeling car sales, but were really good at it. What about getting your license and giving RE sales a go? Commissions on a house are much better than commissions on a car. Plus, if you are passionate about it, and come from a genuine place of wanting to help people do what is in their best interests, that will shine through and form the basis for a very rewarding career. Plus, you will learn & earn in the meantime, as well as have direct access and network in the business.

Beyond that, I'd advise to focus on mastering your personal finances first ... from your comments on saving $10k yet having $25k car loan, I'd say you are on the right track but still have some work to do. Investing in RE is not so different from personal finance ... it is just analyzing and managing income & expenses, just done on a larger scale and with leverage. Read "The Millionare Next Door", more millionares drive 10 year old cars than fly jets, that's how they got to be millionares and stay that way ;)

Finally, agree that in your situation house hacking is a great way to get into your 1st property. 1-4 units that needs work, will cash flow, yet in a great neighborhood of single family homes, that you can get a great deal on and add value to. Move in, fix up, rent rooms &/or units, buy another, move in ....

Yeah I talked to a real estate broker here in my area. He mentioned that the successful people that he knows are all real estate brokers in the industry. So he said if he was me he would go broker but he also mentioned that getting my license wasn't a bad idea either. It just depended on what my "goal" was. Yes I agree, I have a lot of work to do with my personal finances but Im in the industrial industry now. I don't sale cars. Your mentioning of millionaires driving cars then flying jets is an eye opener. I will keep that in mind with the cash flow really start coming in... Thank You

Agree that becoming a RE broker is a great route ... in most states a requirement is to have your RE sales license and practice as a real estate agent for a few years before getting your broker's license, so this would likely be necessary as a stepping stone. Forgot to mention ... un addition to reading "The Millionaire Next Door", I also enjoy reading the "Mr. Money Mistache" blog (http://www.mrmoneymustache.com/) for a different and eye opening view on personal finance, early retirement, and financial independence. Good luck!

0 Reply

Adrian Reyes

Real Estate Investor · Edinburg, TX · Member since 2016 · 76 posts · 13 votes

10y

Antonio Evans I literally just joined BP and it is great to be surrounded by well educated Investors and newbie Investors me myself am new to Real Estate and I do agree on local Real Estate meetings and associations I'm actually attending a meeting this week it is a great way to organically meet and greet with potential mentors it's awesome me myself am trying to run away from that w-2 life and create the life of freedom, but anyways stay true to your goals buddy and good luck in your future success "A journey of a thousand miles begins with a simple step"

0 Reply

Aaron Brown

Rental Property Investor · Independence, MO · Member since 2013 · 92 posts · 37 votes

10y

definitely check out the FHA low down payment loan option. Check out the forums on house hacking. Great way to start out.

Good luck!

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Adrian Reyes:

Antonio Evans I literally just joined BP and it is great to be surrounded by well educated Investors and newbie Investors me myself am new to Real Estate and I do agree on local Real Estate meetings and associations I'm actually attending a meeting this week it is a great way to organically meet and greet with potential mentors it's awesome me myself am trying to run away from that w-2 life and create the life of freedom, but anyways stay true to your goals buddy and good luck in your future success

"A journey of a thousand miles begins with a simple step"

Thank you my friend!

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Aaron Brown:

definitely check out the FHA low down payment loan option. Check out the forums on house hacking. Great way to start out.

Good luck!

Yes. I have been studying it for a couple of months. I first learned it from Jay Morrison (google) and he mentioned FHA loans but Im not sure that my area is big on MultiFamily and not sure where to find any "good" deals on them in my area. Mississippi

0 Reply

Aaron Brown

Rental Property Investor · Independence, MO · Member since 2013 · 92 posts · 37 votes

10y

what city in mississippi do you live?

Best place to start is on the MLS and with a realtor. Are you set up with automatic emails from a realtor? That's the best place to find multi-family deals.

I also check the HUD website, Fannie Mae website, Zillow, and Craigslist sites daily. I have the app for each of the above sites on my smartphone! Also, by checking these websites daily, you will begin to learn about your area and what home prices are going for, and consequently what would be a good deal or not.

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Aaron Brown:

what city in mississippi do you live?

Best place to start is on the MLS and with a realtor. Are you set up with automatic emails from a realtor? That's the best place to find multi-family deals.

I also check the HUD website, Fannie Mae website, Zillow, and Craigslist sites daily. I have the app for each of the above sites on my smartphone! Also, by checking these websites daily, you will begin to learn about your area and what home prices are going for, and consequently what would be a good deal or not.

I live in brookhaven, ms but I travel ALOT!! Im on realtor ALL THE TIME. I THINK TOO MUCH and its two homes in particular I'm looking at but I still don't know how to go about them or what I'm doing lol I never checked, hud, fannie mae

0 Reply

Antonio Evans

OP

Brookhaven, MS · Member since 2016 · 38 posts · 7 votes

10y

Originally posted by @Aaron Brown:

what city in mississippi do you live?

Best place to start is on the MLS and with a realtor. Are you set up with automatic emails from a realtor? That's the best place to find multi-family deals.

I also check the HUD website, Fannie Mae website, Zillow, and Craigslist sites daily. I have the app for each of the above sites on my smartphone! Also, by checking these websites daily, you will begin to learn about your area and what home prices are going for, and consequently what would be a good deal or not.

Are those sites considered "realtors"?

0 Reply

Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

10y

@Antonio Evans I think in the last couple decades we have a mis conception of what an Investor is.

IN my mind and investor is usually someone who has a good to great job .. saves some money and Invests in some passive real estate.. while building their carrier and finances.

Its not really that easy or possible to go from Zero to investor without some outside income and substantial at that.. ergo folks recommending you continue your sales career.. sales is one of the highest paying anyone can enter fields there is ..

I look back at my career and I started selling RE at 18... and that allowed me to buy my own home at 19.. but I did not buy a rental until about 10 years laters.. they just did not produce enough income .. I concentrated on being a number one producing sales man and doing flips... Rentals is slow growth.. once you get established you can then become an "investor" right now work on sales skills and get in a business that creates the largest commissions.. Sell multi family make 50k commissions at a whack.. then start saving and if you really want to be a landlord or investor step into once you have capital behind you.

Just very hard to scale without outside income.

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0 Reply

Daniel Ahern

Investor · Bali, Indonesia · Member since 2016 · 45 posts · 16 votes

10y

Hahahaha. I'm laughing reading everyone's comments about the car. Same thing was stuck in my head as I was reading your post. I'll say the same thing with slightly different words:

Building wealth means putting your $$ and effort towards APPRECIATING assets (smart RE purchases), not DEPRECIATING assets (cars, boats, etc.).

I'm sure you got the point by now. Good luck in achieving your goal!!! (and selling your car =D)

1 Reply

Manolo D.

Contractor · Los Angeles, CA · Member since 2015 · 4k+ posts · 1k+ votes

10y

I have been in construction for 10 years, it is kind of hard to reach knowledge quick without prior experience. Your skills seem to be great, 5 cars in your first month without experience is a great start. I would suggest getting a job where you want to learn the ropes. In my previous situation, we built bridges, small health clinics, and schools from ground up, currently we do tenant improvements, so still, even with my construction experience previously, there is still a transition/learning curve. My point is, same industry or different, you need to learn things where you want to grow.

1 Reply

This stuff is very hard for me (Investment Stories?)

This stuff is very hard for me (Investment Stories?)

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