Getting Started in Real Estate Investing

5 Replies

Hi All.  I am looking to get started investing in real estate and not sure exactly where to start.  I am in South Brunswick, NJ (Middlesex County).  Wholesaling seems like a great place to start but I am not familiar with the "legality" of the wording that is necessary for a wholesale contract.  I can not qualify for a loan since I do not have two years of full-time work experience yet; therefore I can not buy a fix and flip or rental property.  Only other option would be a lease option agreement that I read out of Brandon Turner's book "Investing in Real Estate with No (and low) Money Down."  Any advice?  Also, if there are any investors in the area that are willing to meet and network I am all for it.  Looking to soak up as much knowledge as possible and constantly learn about the business.  

@Mark Montagna, Jr.

What do you currently do Mark?

Hard to see how to get started without ANY capital.  In terms of partnering etc there's probably experience and capital that people can bring to the table.  I'm sure you have some experience, and perhaps with a plan you can come up with some capital?

There's plenty of people around that figured out a way to come up with 'creative financing' of sorts so it sounds like that may be what you'll have to figure out.

However, personally I like owning my own stuff.  I also like working with other people but I'm a control freak and like to have complete decision authority - so it'd be hard for me to get into a quasi partner kind of arrangement.

I guess it's kind of hard to comment if we don't have more info......  Can you take a crack at that?

@Mark Montagna, Jr.

What do you currently do Mark?

Hard to see how to get started without ANY capital.  In terms of partnering etc there's probably experience and capital that people can bring to the table.  I'm sure you have some experience, and perhaps with a plan you can come up with some capital?

There's plenty of people around that figured out a way to come up with 'creative financing' of sorts so it sounds like that may be what you'll have to figure out.

However, personally I like owning my own stuff.  I also like working with other people but I'm a control freak and like to have complete decision authority - so it'd be hard for me to get into a quasi partner kind of arrangement.

I guess it's kind of hard to comment if we don't have more info......  Can you take a crack at that?

Welcome @Mark Montagna, Jr. Wholesaling is rarely a good place to start in real estate. There are people for whom this is not true. These are typically people with marketing experience and connections in the industry and often money to handle marketing as well as a good grasp of evaluating the worth of properties, rehabs, and ARVs. 

Most new people I've seen on the forums tend to make the same mistake. They try to determine how to get into real estate with the money they have. Typically they fail to realize that for new investors their time is their most valuable resource. There are obviously a number of ways to acquire the capital to get started in real estate (e.g. W2 earnings, winning the lottery, etc). Most find it more  difficult figuring out how to best allocate their time to allocate the knowledge to get started.

Good places to start include copious amounts of reading, listening to podcasts, meeting people and building your network. Think of wholesaling like this: imagine your nearest grocery store offered to sell you all their pineapples. What would you do? What do you know about pineapples? How much do they sell for? How do you know what to offer for them? If you were able to figure that out then what? Who would you sell them to? How? At a minimum, your best bet would be to use your time to figure out how to answer all such questions before getting your hands dirty.

Not only is this a very simplistic example, but even considering that there are a number of other questions that could arise, especially as you add the complexity of legality in real estate. 

Mark I’m also trying to get started in New Jersey and I have the same problem you’re facing now. I’m glad you posted this here. I hope we find answers soon

@Jim Goebel I am currently working for UPS trying to get into management.  I do have some money stacked up and have about a year experience as a real estate agent, but unfortunately, it wasn't paying my student loans so I took an alternate route with UPS.  I have contacted a local mortgage broker to find out about partnering on a loan but I am not sure we would even qualify with our debt to income ratio and less than two years of experience of full time jobs, which is why @Odie Ayaga  I figured starting a marketing campaign for wholesaling would be a great start.  I have read a few books from BiggerPockets and another one on wholesaling and investing in real estate, been listening to BiggerPockets podcasts and Flipping Houses for Rookies podcasts and reading elsewhere as much as possible.  I am just looking to get my feet wet and get started already, yet nervous/afraid to get some skin in the game and potentially falling flat on my face.  @Samuel Sam the answer ain't gonna just hit us, so we gotta keep searching and doing the reading.  But I am seeing the potential in your market in Trenton as well.  Especially in multi-family units and bigger apartment buildings.  Trenton will be on the rise again soon.  

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