Buying your first property

7 Replies

Hi everyone, this is just a question about your first buy on a property. Did you guys already have friends and acquaintances in real estate before you made the big leap on your first deal or did you just go for it and did more networking afterwords when you needed it?

Thank you for your time. :)

(P.S I am just a 21 year old guy trying to start early)

Hi @Ryan Pimental .  I'm closing on a triplex at the end of July here.  I'm a complete newbie here and I have no connections to anyone that knows about rentals or real estate.  When I was looking for a property I asked questions on BP and Facebook groups and through the process I became familiar with certain people and would be able to ask them specific questions which helped a lot.  Once I put an offer in and I started telling people what I was doing I found out that there were quite a few people that said they knew someone that was doing this and after maybe asking them a question or two they just said if I need help to ask.

So in short, I would just go for it.  You're not going to know what questions you need to ask and what things you need to look for.  Once a question comes up BP will be able to help guide you in the right direction.  Finally once you commit to doing something people will be willing to help too.  The big thing is actually doing something.  After you just talk about wanting to do something for a while people won't be as keen to help since you haven't done anything.

I spent the last 18 months looking for a place so in that whole time I asked questions but did a lot of my own research.  Once I was actually looking at properties and found things I didn't know about people were more keen on helping because I was actually doing something.

(I'm 24 years old)

@Ryan Pimental I had absolutely no connections in the real estate world when I started and I closed on my first duplex in January. The important thing to do when starting out is to be patient and very conservative with your numbers. The beautiful thing that I learned about real estate is that you have time to learn things and network with people and acquire contacts as your going through your first deal. I would recommend going through a small scale project at first just to learn the entire process and have at least one contact for each different specific stage of the process like your Realtor (submitting offers, completing all due diligence, actually closing) General Contractor (rehab, maintenance) Property Manager (getting the units rented out, managing tenants) and Lender (initial purchase, rehab lending, re-financing) Wish you luck!

@Alvonta Flemings The triplex is not "turnkey."  It will have one renter which is on a year lease up next April.  One of the units is empty and that is where I will move into.   The third unit currently has a MTM tenant but I'm going to get them out asap.  All the units are livable, but putting a bit of work into them can make them nice and bring the rents up.  So that is my plan currently.  The payment on the property is only $10 more than I am paying in rent currently so having empty units for a few months won't be a problem.

@Ryan Pimental I had just graduated college and was starting a job in a new city with which I was unfamiliar. I was going to look for an apartment and a roommate. My dad suggested I buy a house and let the roommate pay me rather than some other landlord. I bought a SFH with an FHA loan, and the rest is history!