New "Investor" from Northern, New Jersey. I used quotes because I haven't actually invested yet.
1.) Since Finding bigger pockets in July, I've been stepping up my education game. Listening to the podcast, reading the books, etc.
2.) I have since started classes for my real estate license. I have 7 more to go, and will be finished on December, 17th.
3.) Every Thursday I look over craigslist rental postings for the towns I have decided to look into (adjacent to where I live). I input all the information into a spread sheet, and categorize by number of bedrooms. Then use those numbers to find trends in the rentals. Averages, and types(Luxury, builder grade, # of rooms). This was a tip I picked up from the podcast.
4.) I have been in contact with my agent and started getting regular weekly updates of the Multi-family buildings on the markets. I've also been trying to categorize their prices for my own "comp" database. Which I believe will help me see market trends in the future. I'm also slowly beginning to get a lay of the land. Which parts of the towns are nicer, rental friendly, etc.
5.) I have spoken to a Lender and have a Pre-approval for 600k. FHA loan.
Does anyone have any other steps or tips i could be taking to help out?
Thanks for the input!
Are you meeting new people each week? This is the only thing I see you not mention yet is equally as important as education.
Goals. It looks like based on your post you're looking to buy and hold...how many units? By when? Where do you want to go from there? You have your pre-approval, but do you know how much you actually want to spend in a purchase? I would start there. Be clear about what you want and it will help clarify your path forward.
@Eric Costa Good for you, definitely off to a good start. Doing your homework and knowing your trading area are critical.
I would second what @Odie Ayaga mentioned, get your goals clarified. That will dictate what next steps you should consider.
You mentioned you're approved for FHA, are you planning to house hack?
Aside from networking, you should try to narrow down your search criteria and goals. Will you flip? Buy and hold? BRRRR? House hack? SF, MF or commercial? Decide what neighborhoods and price range you want to be in. Once you narrow down your criteria, you can be more productive in how you spend your time.
Eric, way to be proactive! Those are great steps you’ve taken. I agree that networking and setting goals are invaluable.
I’d add reading some solid finance books to the list. I think taking the steps to become wealthy in RE is a solid move; but preparing your mindset to be wealthy is also very important. That way, whenever you have a lot of g’s weighing down your bank account, you know how to use it effectively to create your legacy.
Napoleon Hill’s Think and Grow Rich is a classic. Thomas Stanley’s Millionaire next door series are a solid read as well.
@Odie Ayaga @Vincent Priore @Kerry Mertz Good points, I do believe I have my broad stroke goals in mind. It is, however, hard to say what the actual concrete numbers should be considering my knowledge isn't too expansive at the moment. I will house hack, and I believe I want to get a 4-unit MF. As i'm sure all of you know, the taxes are insane in this area. It doesn't seem like 1,2, or even 3 units can cash flow with out an INSANE deal. I would be willing to spend all of the amount the lender is willing if the numbers worked out.
@Ryan Ingram I've been pounding away at all the good titles, my book shelf looks like a self help library. Ill have to check out Millionaire next door. I think i tackled most of the fundamental ones, Napoleon Hill, Stephan Covey, Hal Elrod. If I've gotten nothing else from BP its at least shared some good literature!
Agree with others comments. I would just ask if you are actually going in properties ? Photos are nice but not the same. You need to know what they are not showing you. ; )
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