Rental Property Investor · FL · Member since 2019 · 54 posts · 29 votes
I have been doing alot of reading on the BP forums and through outside resources (books, YouTube, podcasts, etc.) on real estate investing. As someone who is new to the world of real estate investing, I have been doing alot of research to being building my knowledge, however, like many others, I want to take buy my first property and start getting my feet wet. My goal is to start within a few months after I finish my move to a new town in April.
I want to avoid getting stuck in the research phase and I want to take the right steps to begin my first investment.
What are some tips, tricks, lessons learned or advice for someone looking to take the leap and begin their first deal? What are things that are often over/under analyzed in the process? How do to know you have a good deal? Where to avoid looking for deals? Best way to jump out of the education "comfort zone" and start doing?
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Hi Charles,
Here are some answers to your questions.
1. At some point, you just have to do it. Accept that you will make mistakes and learn. Invest small in the beginning so the mistakes won't hurt you.
2. One of the biggest mistakes is buying properties undercapitalized. Most investors don't have enough reserves. I like to have a min of 8 months per property. Look at your finances and adjust your game plan if needed.
3. Well this one to me is the most important step and vital to the success of a new investor. 10s of thousands made and 10s of thousands lost right here. This is where experience and knowledge come in. Two ways to learn this 1 school of hard knocks, you try and learn an figure it out on your own. 2 you have a mentor teach and show you.
4. No best way to just jump out. I think with most new investors the hesitation to finally go out and do it is the lack of confidence in knowing if what they learned is right. This is very normal. How do you know what you learned on your own is correct?
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
The single most important thing to do in my mind is to just jump in and get started as @Frank Wong mentioned. It would be one thing to not educate yourself at all, but it looks like you've done enough of that. There is only so much you can learn without experiencing things for yourself, because each persons situation is a little different.
When I started I didn't know anything. I educated myself to the best of my ability, but im a hands on guy. The "school of hard knocks" as Frank mentioned is how I learn the best. So when I jumped in and got to work, that's when I learned the most. Ive had to re-adjust, learn new things, and change plans along the way.
Rental Property Investor · FL · Member since 2019 · 54 posts · 29 votes
7y
@Frank Wong@Brian Ellis Thank you for the advice and take you for reaching out! Ill definitely take this into consideration as i take the jump and get my first property