Newbie RE Investor Looking for Best First Move

4 Replies

Good Morning, everyone. I have come to understand, that in this business, it's important to make moves based on data and numbers, however, with this post, I am seeking a bit of an educated opinion, I suppose.

As a newbie looking to get my feet wet in purchasing real estate for investment purposes, I am curious to know what the best first move would be, if the investor has approximately $50k of their own money to get started? Would you flip, buy-and hold, etc.? Would you put down the whole chunk of change on a mortgage for an expensive property, or, do you finance and use the available cash for updates?

Credit is fantastic, and annual household income is about $200k with 0 current debt. I am living outside the US with my employer, but will be returning late spring 2020 to Florida. That is when I anticipate purchasing my own home, as well as parking some of my saved money into RE, where it could be put to work for me, as opposed to sitting in a bank account.

What would you do in my shoes?

If I were you I would look into BRRR's with that good credit.

I have heard several successful real estate investors have built thier portfolio 100+ properties using the BRRR method ! Read up on it!

And educate your self like crazy.

That's what I think your first move should be.

Reading 

The Ultimate Beginner's Guide To Real Estate Investing in the bigger pockets guide section. Listening to podcasts,youtube videos, going to seminars, looking at the bigger pockets forums, talking to seasoned investors. Literally consuming all knowledge that you possibly can. I think that after you read the guide I referred you to then you'll have a better idea of what to do first. So check out those references and let me know if that helps. But I think that The BRRRR method should be considered.

If your out of the country and a complete newbie I would suggest do as much reading and studying about real estate as possible.

When I got interested in real estate over 17 years ago I began to look for more knowledge and it helped a ton. I’m still looking to learn more even today. 

Hi Amanda,

Great question, nice train of thought. There are many pitfalls to avoid in the real estate business. One recommendation is to work closely with a mentor as you acquire a portfolio. Next, one might want to avoid high tax areas, especially if insurance rates are high as well. There are many strategies possible to deploy but one I recommend is to invest in growing markets.

One such area is Palm Wells, California. Others: Phelan, Hesperia. These are like boomtowns. The plan would be to work closely with a mentor, buy land and sell for at least double (100% return) although higher returns are definitely possible especially for longer term vehicles. Most other options offer far lower rates of return so the thing to do is buy land with a mentor in either one of the above areas or Morongo Valley, Yucca Valley, Pinon Hills.

I'm happy to assist you more in your quest, let's talk more offline about your goals and ideas.