The real ? for all success investors new investors want to know

5 Replies

Hey BP family, I've been M.I.A. for several months from BP, in order to focus my attention to building up more capital to hopefully expand my investment options and opportunities.

I finally accepted the reality that to increase my chances of having a highly probable real estate investment business I need capital, the more the better.

I have tried and tried all the short cuts, some have worked well for me in the past but ultimately they all have failed.

Now, I think im on the right path and im proud to say my investment fund has finally crept over the 5-figure threshold and growing.

My fiancè and I have decided Indianapolis, would be perfect to start our investment journey and look forward to the adventure.

Now, enough about me lets get to the real reason im posting.

The Question:

This question goes to all the RE investors who have consistently invested in real estate for more than 5 years, especially those whose real estate business survived the last recession. This is a multi-part question.

Question:

If you could start over with a clean slate, with all your current knowledge from all your wins and losses in real estate investing:

A. What steps would you take first before searching, acquiring, or buying your first Real Estate property? ~If books are apart of your answer please list the name of the book(s).

B. How much personal capital would you want saved to get started with investing in Real Estate and why?

C. With our current economy, what strategy would you start with to advance your RE business in the CORRECT way to capitalize on the best returns in the least amount of time? What would this strategy be and why would it benefit in our current economy over others?

D. What people would you absolutely have to hire for your dream team starting out in Real Estate and where would you seek out the most qualified people? (ie: RE attorney, Property manager)

Anything else you would like to add that is relevant to the subject, by all means feel free to do so!

Thanks, and I look forward to reading some of your answers!

A - Find a private source of funding for between $200k - $1M, and set up a loan from them for 10% interest for 20 years with a balloon.  This would give me free money within 30 days.

B - None.

C - First, the current economy has nothing to do with it.  Second, there isn't one strategy I would use.  There are a number of them, and combinations of them (entrance and exit).  Which combinations I use depends on the specific deal...but that's the case regardless of the "current economy".

D - Accountant, PM, Handyman, project manager, financial partners/sources, REI friendly real estate agents, tenant list, buyer list, seller list, and more...

Never stop learning, and follow this motto:

"The things that come to those who wait, are the things that are left behind, by those that got there first".

@Joe Villeneuve Great answer Joe! My question to that response is... What ways or methods would you go about in finding and locking down private money for your deals? Would you find the properties first or the money? Where would you seek out the private money and how would you approach them? The reason I have decided to save more capital is because I havent been able to find private money that would work with me. Either cause Im new with little experience or maybe because my approach may be off. Either way I really need to acquire the knowledge or no how on attracting these private money lenders. Thanks so much for your answers, I really appreciate your responses.
Originally posted by @John Sherron :
@Joe Villeneuve

Great answer Joe! My question to that response is...

What ways or methods would you go about in finding and locking down private money for your deals?

Would you find the properties first or the money?

Where would you seek out the private money and how would you approach them?

The reason I have decided to save more capital is because I havent been able to find private money that would work with me. Either cause Im new with little experience or maybe because my approach may be off. Either way I really need to acquire the knowledge or no how on attracting these private money lenders.

Thanks so much for your answers, I really appreciate your responses.

 Wow!  Not sure how to answer this.  I know what the answers are, I'm just not sure how to do it in this format.

The reason is it's kind of a Charles Dickens answer.  It's really simple, it's really complex.  There's no one answer that fits all, there's one fit that all answers are based on.

I think the first way to answer this, is to set the basis for understanding the answer(s).  The basis is a detailed understanding of how money works.  This involves:

1 - Breaking away from a home owner mentality with regards to money and investing.
2 - Using "$$$" for analysis, and eliminate almost all use of "%%".
3 - Learning, and following, the 2 Golden Rules of REI...to be succesfull
4 - Understanding the meaning of this number sequence, 1073741824, and how it applies to REI

...that's the start.

Originally posted by @Tyler Bushey :
Originally posted by @Joe Villeneuve:

4 - Understanding the meaning of this number sequence, 1073741824, and how it applies to REI

...that's the start.

 Can you explain 1073741824 please?

 Not enough space here for the explanation, however I will tell you that it involves what Einstein referred to as the "greatest invention of the 20th century"....compound interest.