Newbie in the REI world. Any ideas on how to start?

[Teddy Hoang]

Hi there BP,

My name is Teddy and im from Vancouver BC Canada. I've just stepped into the REI game and im very excited to get involved.

Im looking for someone in Vancouver to connect with and possibly help each other down the road.

Im wondering if anyone has done any deals in Vancouver at this time especialy since the market here is insane.

Looking to meet new people and form business and personal relationships!

Teddy

[Don Konipol]

Originally posted by @Teddy Hoang:

Hi guys thanks for the replies.

@Pawan J. for someone like me who has no capital, how would you suggest structuring deals where both myself and my investor can benefit? 

Is it easier to get private money lending vs a JV partnership?

 No capital and no experience and no expertise.  OK let's be realistic. Why would anybody invest their money with someone like that?  With no experience or expertise, how are you going to qualify deals, evaluate risk, recognize problems and opportunities, or move fast enough to beat out the competition even if you do?

People become interested in real estate investing, watch a late night infomercial, come across a few websites, hear tales of success, and are ready to jump in head first.  So after 38 years as a real estate broker, investor, syndicator and private lender, here are my observations.....and suggestions.

1. Most investors/flippers find the outcome of their first deal disappointing, either losing money outright or putting in lots of time for little or no profit.  As would be expected in any endeavor until they gain experience and knowledge.

2. Almost all buyers of "mentor or guru programs" are shocked at the time and effort it takes to find a "deal", the difficulty of obtaining financing, the amount of their own capital they are expected to invest, the frustration of dealing with contractors and how unprepared for the real world of real estate their mentorship has rendered them.

3. Most new " investors" disappear from the real estate scene within 3 months of starting out.  And the less capital one starts with the quicker the disappearance.

4. Most new real estate flippers/wholesalers/rehabbers find out fairly quickly that they will not be able to earn a living in the real estate field.

So, here are my suggestions

1. Obtain a real estate license and get a job related to some aspect of real estate....brokerage, finance, investment, appraisal

2. Take a hard look at yourself and decide if entrpernueral real estate endeavors are right for you, or perhaps your niche is as a service provider.

3. Get educated in real estate through real educators, not Rich Dad, not Trump University, not Carlton Sheets. Courses offered by colleges, by CCIM, by NAR, by MBA, by ULI, by AI.

4. Stop believing anything the gurus of real estate say.

5. Decide if you are a real estate INVESTOR, or are in the BUSINESS of real estate

6. Decide on a participation in line with your available time, income needs and available capital.  REALISTICALLY 

7. Attend networking events to make contacts and further your education

8. If you lack knowledge or understanding of personal finance and wealth management, rectify this deficiency

9. DO NOT put someone else's money at risk if that person does not have the expertise and experience to evaluate the deal, until you have sufficient knowledge and experience to be a fiduciary of that money.  

Good luck!