Real Estate Investing For Rookie

Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes

I have recently been interested in the field of Real Estate Investing. The past couple months I have been learning everything I can about Real Estate by reading books, watching videos, listening to podcasts, and attending seminars. With all this knew knowledge I’m obtaining, the one thing I am still searching for is a true first step in how someone with literally zero experience in ever purchasing a piece of property would get started. I am currently playing professional hockey and have a lot of down time that I’m using to learn about real estate. Any suggestions on which steps I should take?

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

Originally posted by @Michael Gunn:

@Alex Deacon thank you for the guidance as it’s appreciated more than you know! Any suggestions as to where I can find a place where I can gain the knowledge in what makes an “ultra safe” deal?

An "ultra safe" investment is one of good quality with very little leverage and professionally managed. In other words, you probably won't make much of a return on it.

Listen to the podcasts and you'll hear many reasons why investors never get started. At some point you will have to make the decision that you're not going to be that kind of person and take the leap. It may work out great. It may enroll you in the school of hard knocks. Keep pushing on and you'll figure it out.

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Alex Deacon
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Michael Gunn continue down the path of raising your real estate IQ. When you are ready make a purchase thats ultra safe so you can get your feet wet first. Too many new investors jump right in the water and that can be dangerous. There is a reason why a large majority of investors fail. Its not an easy business but its a great business.
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Michael Gunn
OP
Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Alex Deacon thank you for the guidance as it’s appreciated more than you know! Any suggestions as to where I can find a place where I can gain the knowledge in what makes an “ultra safe” deal?
0 Reply
Patrick Daniel
Rental Property Investor · Pensacola, FL · Member since 2018 · 196 posts · 130 votes
7y
I think the best thing you can do before you pull the trigger is to answer a couple of questions, and that will make everything more clear to yourself on if you should do a deal or not. Clarity often takes the fear out of things.
What type of real estate are you interested in investing in?
Where do you want to invest?
What type of return are you wanting?
How long do you want to hold the investment?
How much time do you want to spend on the investment?
Once you answer these few questions, you will be much clearer on your next step forward.
Best of luck!
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Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
7y
Originally posted by @Michael Gunn:
@Alex Deacon thank you for the guidance as it’s appreciated more than you know! Any suggestions as to where I can find a place where I can gain the knowledge in what makes an “ultra safe” deal?
An "ultra safe" investment is one of good quality with very little leverage and professionally managed. In other words, you probably won't make much of a return on it.
Listen to the podcasts and you'll hear many reasons why investors never get started. At some point you will have to make the decision that you're not going to be that kind of person and take the leap. It may work out great. It may enroll you in the school of hard knocks. Keep pushing on and you'll figure it out.
The DIY Landlord Book4.7248 Reviews
Website View Page
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Alex Deacon
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Michael Gunn I would agree with @Nathan Gesner100%. Focus on higher quality where the initial return on paper doesn't look as appealing. In the long run a quality area and property will appreciate and give you less headache. Your going to have to learn a lot on your own but continue to ask questions and network with other successful RE Investors
1 Reply
Lesley Resnick
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
7y
Buy a multi-family primary residence. House Hack is the way to get started. Are you from TX, do you plan to stay in TX after playing? You could consider your primary residence in another city or state and have a 2nd home near the team? Just be conscious of the mortgage and tax laws that would govern your actions.
1 Reply
Michael Gunn
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Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Patrick Daniel thank you so much for the awesome questions that I definitely need to answer for myself! Fully eliminating my “fear” is something I definitely need to be working on.
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Michael Gunn
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Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Nathan G. thank you for the words of encouragement! Means more to me than you know!
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Michael Gunn
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Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Lesley Resnick I’m originally from Detroit but am just currently living in north Dallas. Eventually when I’m done playing I would like to live in Michigan but I hear the market is so good in north Dallas that I would like to be able to learn about real estate while I’m living here. Thank you so much for the help!
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Alina Trigub
Rental Property Investor · Glen Rock, NJ · Member since 2015 · 3k+ posts · 2k+ votes
7y
@Michael Gunn I second @Patrick Daniel suggestion. After doing your research you have to pick a niche in real estate that you want to concentrate on. And then spend all your time and efforts researching and educating yourself on this niche. Otherwise you spread your time too thin.
If you'd like to chat offline, feel free to PM me.
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Michael Gunn
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Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Alina Trigub thank you for the help!
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Jim S.
Flipper/Rehabber · Cleveland, OH · Member since 2018 · 80 posts · 51 votes
7y
Originally posted by @Michael Gunn:
@Patrick Daniel thank you so much for the awesome questions that I definitely need to answer for myself! Fully eliminating my “fear” is something I definitely need to be working on.

Amen to the eliminating fear Michael! I'm in the same boat as you. I've been spending a lot of time trying to learn this business and I can certainly see why many of aspiring investors never actually get out and do their first deal. It can be pretty overwhelming when you're not sure what you're doing or where to start. I've worked in the same industry for 30 years and know everything about it so it's really intimidating starting something new where I know next to nothing. My plan is to spend a little more time learning and then just "push myself out of the nest" and try to find the safest deal I can just to start. Even if my ROI isn't that great. Best of luck to you.
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Michael Gunn
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Real Estate Broker · Detroit, MI · Member since 2018 · 10 posts · 5 votes
7y
@Jim S. My whole life has revolved around hockey ever sense I was 3 years old and starting a journey down a new path can be intimidating so I can definitely relate to you there. Thanks for the support and encouragement! I’ve came to understand that know matter how much I research real estate investing I will never fully learn and understand if I never take a first step.
2 Reply
Will Parker
Member since 2018 · 62 posts · 25 votes
7y
@Michael Gunn
I'm in a similar position as you are in regards to being a rookie in North Dallas. I'm going to start mailing letters out to jump in and hopefully find some deals. I would love to connect and trade RE stories to see what we can learn from each other as we go through the process.
0 Reply
Gary Carver
Realtor · Detroit, MI · Member since 2018 · 387 posts · 129 votes
7y
@Michael Gunn Hello here from Detroit. Continue to gain as much knowledge as you can from Books and Podcasts and attend real estate investment groups. there is a lot of valuable knowledge there .if you have any questions about the Detroit market give me a call (313)6236907
1 Reply
Martin Potter
Specialist · Denver, CO · Member since 2017 · 46 posts · 19 votes
7y
@Michael Gunn and @Will Parker ,
The biggest thing you can do to mitigate that initial fear is to surround yourself with other people accomplishing what you want for yourself. Thats exactly what I did just a few short years ago and have now done almost 10 deals! It's working! If either or both of you are interested, I can connect you with a group of investors I know about that meet up in McKinney on a regular basis. Would be a good opportunity to connect with some like -minded individuals in your local area. PM me if that interests you and I would be happy to share:) Good luck with everything otherwise!
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
7y
@Michael Gunn Hi Michael, I’m in the Dallas area too (Grand Prairie) and fairly new to real estate. I started a year ago out here. Bought 5 rental homes and put them up for rent right away. You will easily get 1% of the home value in rent. I list them for rent for free on Zillow and have dozens of inquiries the day I list them with 10 pictures. Real estate appreciates pretty good out here so far and the demand is extremely high. Let me know if you have any questions about getting into the single family home rentals around here. One issue I have run into is foundations are bad out here. I had to have foundation work on 4 propertIes last summer due to cracks in walls and doors sticking. They averaged 4K per property. So be aware of that.
3 Reply
Cesar Pimentel
Central Valley, CA · Member since 2018 · 12 posts · 2 votes
7y
@Michael Gunn I'm in a similar boat and still haven't purchased my first investment property. However, I have purchased 3 primary residences in the past that all required renovations. So I feel like I'm familiar with the process. What has helped me gain confidence is surrounding myself with people who have done it and are willing to mentor me. You'll find similarities from them and you can pick up on them. Meet with them regularly pick their brains, ask questions, and then some more. One thing that I believe is important is starting in the area you're familiar with.
0 Reply
Miranda Simon
Clyde, TX · Member since 2018 · 109 posts · 94 votes
7y
@Michael Gunn I'm new to Real Estate and just starting out. The best advice I've received was to ONE get a mentor who can train you in what's working today and TWO Follow he or she's advice; try your best not to skip any steps. By having a mentor, you cut your learning curve way down.
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Robert Biggerstaff
Contractor · Pensacola, FL · Member since 2018 · 303 posts · 240 votes
7y
Hi there I pray this finds you doing well. My suggestion is this… Figure out exactly what you need from a property for a tech interest you. Make sure that you take into consideration the longevity for lifespan of an item and what the cost will be to replace it. Example being a water heater. I put away eight dollars a month for each unit for the water heater. I figured that generally speaking there good for about 10 years and then you’re going to have to replace it. Another big one is going to be your roof. How much life is left in the roof and then figure out how much you need .......When you do find your goal the path will become clear it really is all about the numbers
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Nick Farajian
Investor · Fair Lawn, NJ · Member since 2016 · 6 posts · 2 votes
7y
@Michael Gunn hi Micheal I would suggest to partner up with someone who has experience in the field that you want to be involved it like (investing, rehabbing, buying and holding etc..) and get some experience under your belt. First figure out what you want to do in real estate and then find one that has experience. That would be my suggestion. If you have more questions please ask. Hope that helps.
2 Reply
Trey Crusey
Real Estate Agent · Birmingham, AL · Member since 2018 · 72 posts · 37 votes
7y
@Michael Gunn if you haven’t listened to them already bIggerpocoets podcast 119 is about a pro hockey player turned RE investor. Also check out 277 while you’re at it.
0 Reply
Brenda Birhiray
Rental Property Investor · Corona, CA · Member since 2018 · 15 posts · 44 votes
7y
@Michael Gunn I am also very new to REI. Recently bought my first rental property in Dallas just last week. I bought from MLS as I am yet to gain experience in going about finding deals off the MLS. I paid cash for it using saved up funds plus money from my 403B retirement savings. It wasn’t an easy decision to make. But I got tired of talking the talk and not pulling the trigger. I was able to draw up inspiration from listening to Big pocket podcasts. I have no mentor but would love to have one. I am looking into BRRRR approach. I plan to refinance or use the equity from this new property to invest in my next deal. I also have the option to draw up equity from my current home to invest in the next deal. I guess one important question you could ask yourself to help start, is to determine what assets are in your current possession and how can u utilize them to achieve your REI goals.
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Earl Hatmaker
Specialist · Dayton, OH · Member since 2018 · 59 posts · 41 votes
7y
@Michael Gunn what part of Michigan are you wanting to go back to? There’s a lot of great opportunity for STR and the Midwest is probably the best place to be starting out as far as COC returns, IN MY OPINION. I’d do what others have suggested, pick a play. Multi family, single family, hold or flips, vacation rentals(depending where in Michigan), and then find a mentor where you will be moving and one in Dallas. I met someone at a seminar who only does vacation rentals close to mackinaw, only rents them 7 months out of the year and is making a killing. Every successful real estate venture will include one thing, FINDING THE RIGHT DEAL. Good luck!
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
7y
Learn your market and learn to market.
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