I have one year to learn real estate investing, what do I learn?

Question

Hi everyone, first post.

I am a recent college grad and I'm already looking into real estate to get more than just my 8-5 job.

I'm looking to invest in real estate whether it's vacation rentals, apartments, condos - I'm not really sure yet. I also have to save up some money for a down payment since I just started working. I'm also stuck in a one year lease for now in a location that I plan to move out of in a year or so.

I've considered an FHA loan, do I absolutely have to live in the property to acquire one? House hacking seems to be the best introduction for beginners, is the case?

Where did you start?

What do you suggest I learn in the mean time until I have enough money for a down payment?

So far I've been listening to some podcasts andreading 15-30 min at least once a day on real estate books (so far, rich Dad poor Dad, bigger pockets investing with no or low money down, and the ABCs to investing in real estate)

Thanks!

Ken

Michael Lee · Answer

Hello and welcome to this site Kenneth! When just starting out I would recommend to try to learn what is common to just about every type and also learn which style you like the best. Learn the areas you like the most and include the area that has the most closing. Go to the local real estate clubs and events and listen to those that have gotten successful at what you think you'll do. Meet and talk to those Governmental people that you'll probably will approve what you do, like the building inspectors.

Stop spending money on anything you don't have to have to help you save. Decide whether you'll make short term or long term investments. Talk to Bankers and other lenders and find out they will require for a loan. There are many mythes out there like needing experience to own apartments or wholesaling is the place to start for those that do not have much money.

Those that own mire units usually do better. From what I have heard is that a "House Hacking" loan does require owner-occupancy. It's one of a few things that loan has my approval for a home that has 1 to 4 units. The number of units you own, the better. Do not cut any corners that you think is a short-cut for wealth. It will take hard or smart work or both to succeed. Good luck to you!

Dominique Pradel-Lewis · Answer

@Shawn M.yes do verify you don't want unnecessary charges

Jeremy Roberts · Answer

Welcome to BP! You're in the right place. As you can see already, there are so many ways to start out. In my humble opinion, network with people so you can find out who you like and where your niche is. Also, learn about you and why you want to do this. Simon Sinek has a great book called Start With Why. If your passion exists for this business, you'll get through any adversity you face as you learn. Good luck and keep sharing.

Shawn Mcenteer · Answer

@Dominique Pradel-Lewis I would have to confirm with lender but I recently discussed 10% down conventional loans with him and he was offering it about a month ago with 78% equity terms to remove PMI. For FHA as far as I know you have to refi to remove but conventional is equity based, if it appraises under 78% PMI goes away.

Dominique Pradel-Lewis · Answer

@Shawn M. @Kenneth B. Regarding conventional loan PMI being remove after higher appraisal I think that has changed. You now have to refi

Eric Adobo · Answer

You don't really need to talk to government people.

One less thing to worry about.

Learn what people say about market cycles. Not a popular topic after a meteoric rise in prices.

Cap rates in commercial.

Shawn Mcenteer · Answer

Hi @Kenneth B. Stay active on Bigger Pockets. Attend some local meet ups to network and learn. Speak to lender to find best lending options, a lot of first time investors think FHA is the way (thats what I thought) but thats not always the case. I used low money down conventional loan and just got an appraisal to remove PMI, FHA you have to refi to remove PMI.

I have one year to learn real estate investing, what do I learn?

I have one year to learn real estate investing, what do I learn?

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