Virginia / Maryland · Member since 2017 · 12 posts · 3 votes
Hi All,
So I have been STUCK in an analysis paralysis stage for the last 2 years! I have the money, good credit and time (Retired Military so also access to VA loans if necessary ) to start investing in rental properties but there is literally so many books, podcasts and websites dedicated to rental property investing and I have read (and listened too) so many of them and I have learned that a good portion of them have different ideas of how to get started. I am literally stuck right now and have so many ideas on how to get started based on the research I have done BUT still have not gotten started...... SO with that said I was just wondering how people here got started? I am honestly thinking at this point to just start with turnkey properties but that is only because I don't have a team or network to start with the BRRRR method yet. Looking forward to seeing the replies.
Valencia, CA · Member since 2017 · 22 posts · 10 votes
9y
Catalino,
Full disclosure: I'm just starting in the research phase and haven't done this myself.
But I would say two words to change the pattern you've gotten yourself stuck in:
1. Momentum
2. Accountability
You're in a thought bubble, but the action is going on outside of your bubble. Pop the bubble and start a new pattern - one of action.
1. Momentum - you have the time, so start doing something. Promise yourself you're going to commit to this for 2 weeks. You just need to start changing your habit of inaction. Set an alarm for 10:00am every day for the next 2 weeks, and analyze 5 deals. Use one of the calculators on this site, or another of your preference.
2. Accountability - you're in the bubble by yourself. If you're not able to motivate yourself into action, make yourself accountable to someone else. Find a partner (identify local players; REI groups; BP) who will expect something of you.
If you're completely against partners, or that would create more barriers to action, then just take the 5 deals you analyzed above, pick the one you like the best and post it on BP for feedback. Does one stand out as a good deal? Put in an offer!
With your VA loan I'm assuming you are open to house hack, if so, you should do that first.
I would just get out there and start looking at properties. Find a buyers agent OR even better, just reach directly out to the seller's agent. Start developing a system for finding deals: every day look at new listings under say $100K in a target area, set up showings with rent/value over 1%, and start making offers.
Also, just go start interviewing property managers right now (if you want to go that route). Ask them what kind of rentals they like to manage...and then look for properties that fit that description.
Just keep moving forward, putting one foot in front of the other. You will stumble a bit, but eventually you'll be learning how to walk and run!
One additional note: I've done local (having to build my team) and turnkey/long distance (having a built-in team). Turnkey can definitely be nice, but you really learn a lot by having to do it all yourself first. And then you have the knowledge to be able to hold the turnkey team a little more accountable.
Rental Property Investor · Mansfield, OH · Member since 2017 · 151 posts · 117 votes
9y
@Catalino Rodriguez - 4 Years ago, my wife and i started with Turnkeys by simply going to a presentation. There are many TK companies that host weekend seminars to get to know them. If youre going to go that path, select a few companies and go visit.
Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
9y
I did the exact same thing. I had listened to so many podcasts and read so much online material that I was able to listen to podcasts and answer the questions before the host did. Thats when I knew it was time to invest.
In terms of where you'll start, the first thing you have to do is start looking at some areas with the end goal in mind. You're going to need to decide whether you want to flip or buy and hold or both. And thats going to determine what type of houses you look for and in what areas.
Once you get that down, then your next step is to get a realtor and start viewing houses. Pick a handful of subdivisions and become familiar with them. Look at houses that have been rehabbed and ones that need rehab. You'll fairly quickly get a feel of what rehabbed house sells for and what a house that needs work will sell for.
Once you get that, then you'll know when you see a house that needs rehab is priced too low and is a good deal.
You then need to start learning how to estimate rehabs. As you go to view houses, start writing down lists of things that you would need to fix. Then start putting together estimates for those types of things. You'll start to see a lot of the same items over and over and you'll be able to estimate the rehab as well.
Replacing a light (labor and material), Tile a floor (labor and material). etc. You can easily figure out the material costs. Go to menards and lowes and pick out the items that you need. Are you putting in $125 toilets? $200 toilets? etc. For labor, just ask around. You should get some numbers.
But once you get that down, then you're good to go. When new listings come out or price changes where the price is dropped significantly, you should know right away whether that might be a deal or not. Then after you get inside the house, you should be able to put together a list of rehabs and get fairly close to the rehab estimate to know if it makes sense to put in an offer.
And to be honest, I would say put in an offer on every house you go to - no matter how far off the list price it is. Eventually you'll get one and at a price that makes sense.
Rental Property Investor · Denver, CO · Member since 2016 · 40 posts · 18 votes
9y
I would say turnkey is great for some people but if you have the time, you can probably do better finding your own deals. You said you don't have a network put together yet to start with a brrrr strategy. The best way to build a network is to find a good deal and close on it. Then you will suddenly realize that you own a house and you will be forced to build a network. You will start figuring out those details once you have the property. The trick is making sure it is a good deal. If it is, then you won't be too worried about holding costs while you figure things out. Also, I have found that it is really difficult to network with contractors, property managers city officials, etc., unless you have a property. Sure there is plenty of research you could do before purchasing a property but the very best way to get started in real estate is to find a good deal and close on it.
Valencia, CA · Member since 2017 · 22 posts · 10 votes
9y
Catalino,
Full disclosure: I'm just starting in the research phase and haven't done this myself.
But I would say two words to change the pattern you've gotten yourself stuck in:
1. Momentum
2. Accountability
You're in a thought bubble, but the action is going on outside of your bubble. Pop the bubble and start a new pattern - one of action.
1. Momentum - you have the time, so start doing something. Promise yourself you're going to commit to this for 2 weeks. You just need to start changing your habit of inaction. Set an alarm for 10:00am every day for the next 2 weeks, and analyze 5 deals. Use one of the calculators on this site, or another of your preference.
2. Accountability - you're in the bubble by yourself. If you're not able to motivate yourself into action, make yourself accountable to someone else. Find a partner (identify local players; REI groups; BP) who will expect something of you.
If you're completely against partners, or that would create more barriers to action, then just take the 5 deals you analyzed above, pick the one you like the best and post it on BP for feedback. Does one stand out as a good deal? Put in an offer!
Rental Property Investor · San Francisco, CA · Member since 2013 · 12 posts · 30 votes
9y
Information overload indeed. There are as many ways to play with real estate as there are ways to get from LA to NY - which is actually how I think of investing.
BRRR is one of many roadmaps that can be used to get you where you want to go. Every book and every blog post is just map of a very specific stop along the way.
The the sake of simplicity, think of what kind of road you want to drive on. Do you want to do a lot of off-roading (DIY rehabs) or do you prefer to drive fast and furious on flat pavement (turn-key rentals)?
In the end, choose the path that seems the most fun. Not "interesting" mind you - I mean FUN. It sounds a bit immature but if you don't find it fun no amount of analysis will justify you staying with it. And staying with it is the part that counts.
Investor · Frederick, MD · Member since 2015 · 48 posts · 26 votes
9y
@Catalino Rodriguez , if you ever want to run your BRRRR analysis by me, feel free to reach out. Also, if you have any structure related question, let me know.
The way I overcame it is to stop reading everything that came my way. I am more selective in what I read and want to learn. I have finalized what I want to accomplish and I stick to that. Now it's about connecting with those who are doing what I am setting out to accomplish. All the best to you.
Investor · Tromsø, Norway (Europe) · Member since 2015 · 431 posts · 194 votes
9y
@Catalino Rodriguez Where exactly are you planning to invest? If locally pick a neighborhood and start putting in offers there. If from out-of-state pick a city and neighborhood and put in offers there.
Your first deal isn't a home run. It's a way to get started.
Rental Property Investor · Los Angeles, CA · Member since 2009 · 52 posts · 9 votes
9y
I was like you. It took me a while to figure out every market has its own investment strategy & you must match the strategy to the market. So it's good to know several investment strategies just make sure you spend an equal amount of time researching your market to determine the best strategy. For example: I'm in Los Angeles and IMO it's not really a buy & hold market because it's not landlord friendly, I detest rent control and it's very expensive. So in Los Angeles I invest in flips.
Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 654 posts · 622 votes
9y
You need to partner with an entrepreneur
You stated you have the time, the money and the credit. You left out Entrepreneurship. I have a graph that has Time, Money, Experience and Entrepreneurship on it that I teach on for real estate investment success. What's the most important?
Read Richard Branson's Losing my Virginity book. (It doesn't get political). This book actually changed my life.
I'll get to the point here - but you still need to read it!:
PARTNER UP. Take 50% of something with someone who will make it happen. Later, you can go on your own.
Good Luck
Tim
Alexandria, VA · Member since 2016 · 111 posts · 164 votes
9y
I'm also experiencing that right now. I read the BP forums everyday, read a lot of REI books and listen to podcasts but I still feel that I'm not going anywhere.
Virginia / Maryland · Member since 2017 · 12 posts · 3 votes
9y
Thank you everyone for the helpful advice. From reading everyone's replies I feel like the main thing I should do is find a deal and make and offer and that would get me started.