So You're New To This: A Guide for the New Real Estate Investor

So You're New To This: A Guide for the New Real Estate Investor

Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes

Hi All
I just wanted to post here on what I thought was the most important things a new person should do when starting out. Below you will find a list of what I think a new person should do first before diving head first into this great world of real estate investing.

#1.Ask yourself the real reason you are doing this. Why are you really doing this...We all can say money but it is more than money, let me tell you! Do the seven levels deep that dean talks about on here under his weekly wisdom. It will help you to put your feet firmly on the ground.

#2. Set goals: Don't just say them but put them in writing and put them up so that you can read them every morning and evening. It will help you so much you will not even realize.

#3. Find a mentor: Go to your local REIC meeting and find a seasoned investor and ask for some schooling. If they say no ask someone else. Check this site for help..There are several mentors on this site including myself. If you don't ask for help you will not get any. If we are to busy we can point you in the right direction.

#4. Make a to do list and carry it with you. Make the list on a piece of paper with three columes on it. Now, soon and later. Now is stuff that you need to you need to get done for real estate and other things in your life this week. Soon, is for stuff that is coming up like a website or LLC for your business. Later, is stuff that you want down the road like the house paid off or to take your family someplace special for a week. As you get things in the now area done you mark them off the list. At the end of the week you do a new list and move everything forward. It helps to get stuff done and before you know what has happened your goals are getting done. Got this from the edge (dean). He has the list in his pocket at all times...That is great stuff.

#5. Tell people who you are and what it is you do. Say it like you mean it too. If they don't know who you are and what it is you can do for them how are you going to get anything done. I have had tons of people come up to me and say so and so told me you buy houses or help people that need to sell fast.

#6. Advertize: Put signs on your car, make business cards, do fliers, get your name on the web. The web is the number one area to get your business to the next level. 86% of first time home buyers look on the web first for their home. What does this tell you that you need to do. Put it on your list under soon or even now if you have the funds.

#7. Build a buyers list: Run adds on craigslist for a house or go to the county recorders office and get a list of all cash sale in the last 30 days in your area. Send them a letter (yellow letter) telling them what you can find for them and ask if they could contact you back (business card).

#8. Get a deal and make sure it is one: If someone calls on your adds or signs and has a house get all the info you can but the main thing is to let them talk. They will give you 99% of what you need to know. Then if you are unsure ask someone here or your mentor.

#9. Get an Agent: Some say this is a must..I have two great agents for item on the MLS but I have found most of my deals before they are on the MLS. Yellow letters, bandit signs and word of mouth. There are to many people on the MLS looking at the same thing you are. You can get deals there but so can everyone else... follow the road less taken.

#10. Don't stop: Most people get turned down and give up. If you do that you will do that with everything in your life...Life is hard so get off you &%## and make this happen for you , your family or ??? If you have seen my video then you know what can be done. There are stories on here that will make you cry but that will not put food on your table. You need to do that yourself and be the next story here. So, why are you still here reading this???Go do your list and start marking crap off...NOW GO GET SOME...
__________________

Not having a goal is worse than not setting one..

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Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y

First off - do not get as mentor people who advice you that need mentors. It's like asking a used car salesman if you need another car. There are some so-called real estate investors out there who make more money mentoring others than the money they make on actually investing in real estate. SO be careful who you listen to.

Second, having said #1 above, look for a mentor who buys properties weekly or monthly in today's market. Do not choose as a mentor someone who bought a deal 1 year ago. The market is continually changing. What works 1 year ago does not necessarily work now.

Third, where do you find these people?
1. Biggerpockets
2. Local REIA
3. Meetup groups
4. Ask real estate agents as to who are their investor-buyers
5. Ask property managers & leasing agents as to who their landlord-clients are who are still buying properties today

Fourth, here's what you can do when you meet a potential mentor to get that person to mentor you:

1. Offer to work for free for one (that's hard to turn down)

2. DO something for that mentor so he will put you above the rest of the wannabees who want something for nothing - e.g., find him a deal and ask him to help you fund it or teach you how to fund it and you will do all the work to raise the money & give him a share of the profit

3. Pay that mentor (least preferred way)

See this reply in the discussion

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  • Real Estate Broker · Bozeman, MT · Member since 2012 · 220 posts · 52 votes
    13y

    Thanks for the post and your thoughts. Regarding #9--I've begun to develop relationships with a couple of agents and was wondering the best way to compensate them for their access to the mls and other leads--cash when a deal closes, referrals? I've found that most good agents are in it for the long haul and know that they'll get great referrals from me, but sometimes its nice to have some cash in the pocket. Interested in your thoughts.

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    Hi Let them know they can double side it if you are doing a flip with it. Even a three side if you want them to sell it for you or they bring you a buyer when complete..Keith

  • Fort Worth, TX · Member since 2012 · 1 post · 2 votes
    13y

    Thanks, I needed to hear this!

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    Your welcome rico.

  • Investor · San Antonio, TX · Member since 2013 · 153 posts · 36 votes
    13y

    Hi Page Huyette Real Estate agents love referrals.. Just make sure it happends on a consistent basis. Since they have to pay for MLS access, i offered to pay for their access.. that alone will make them happy.

    You can also gain access as an unlicensed assistant.. This is my prefer method, because you get a log in name and password of your own.. For this, the broker has to agree to.

  • Jacksonville, FL · Member since 2012 · 12 posts · 3 votes
    13y

    very inspirational! I kind of dove head first into REI, I have to say lately I feel very unorganized! I need to find my niche, this post will help me with that I think, in the very least it will help me get organized.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    13y

    Thanks for the advice. I am going to copy and paste and save it on my desktop. When I have a little extra time, I am considering printing short articles like that out and putting them on the wall. My wife doesn't like my interior decorating skills (I had an 08/15 Maxim on a sled in the living room at one time)...and she will not like me putting this stuff all over the bedroom walls. However, I feel like I need to read it over and over. It is motivational! I am ready! I am fired up! I just bought "THE" books!

    John Thedford
    Naples, Florida

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    thanks John
    Join your local reic and start working with people in your area..

  • Involved In Real Estate · Milwaukee, WI · Member since 2009 · 124 posts · 7 votes
    13y
    Originally posted by Fred Ramos:
    Hi Page Huyette Real Estate agents love referrals.. Just make sure it happends on a consistent basis. Since they have to pay for MLS access, i offered to pay for their access.. that alone will make them happy.

    You can also gain access as an unlicensed assistant.. This is my prefer method, because you get a log in name and password of your own.. For this, the broker has to agree to.

    BE CAREFUL! Brokers can get in TONS of trouble for giving out that information. Also, Fred is right about consistent referrals; we only get a portion of commissions (commission splits, office fees, etc.), consistent flow of referrals helps US while we're helping YOU!

  • David HollandPro Member
    Realtor · Baltimore, MD · Member since 2013 · 91 posts · 32 votes
    13y

    This is some of the best advice I've read so far while learning about real estate investing. It seems everyone I talk to says now is a terrible time to do real estate (I def don't agree) and all I hear are horror stories about renting out property. Thanks for another inspiring post!

    David

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    Thanks David
    I am glad you know that now is the time ti be investing in real estate. You will never see another market like this again in your life time and yes there will be tons of new Warren Buffets made in the next few years...

  • Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    13y

    Well, there may be some new Warrens but I doubt a ton of them and certainly not hitting a billion bucks messing with small time RE investing techniques....in reality. Good points initially made.

    Jon Holdman, sure seems like a blog in the wrong forum, I'd suggest the marketplace all things considered. IMO :)

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    well bill what can i say. You see it one way and I see it another way. I love nothing more than showing a new person that this can be done. Watch as they finally get it and are able to close a deal and get paid. You know as well as I that this only happens if they do the work to make it happen. Marketplace...We all have a business to run if that is teaching or doing real estate deals..I happen to do both. Next week I go to the edge in scottsdale to learn better ways to do short sale deals and much more for four days. We all seem to need more education..lol Keith

  • Realtor · FL · Member since 2013 · 372 posts · 83 votes
    13y

    Sir are you available to mentor me?

  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    13y

    Folks - If you want to solicit others in order to grow your business, please respect our site rules and use our Marketplace. Those of you who aren't happy about the rules, please understand that this site is a business, and one of the ways we make money is via our Marketplace. Any post that elicits commerce must go there.

    If we don't monetize the community, it goes away.

    We don't delete member blogs unless they violate our Terms of Use. If your blog articles contain ads or promotion, we don't highlight them, but these blogs are readily viewable by anyone.

    Thank you.

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    I got it but I had to reply to his need. I am sure after this one being remove he will feel unwanted which is not the case..

  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    13y

    Keith - That is certainly not something that we want. However, we have to enforce our rules evenly. That isn't an easy thing to do, but if we make exceptions for one person, it ALWAYS comes back to bite us.

    That said, if he gets in touch with me, I'm happy to offer him a free one month PRO Basic trial so he can post about his needs.

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    13y

    Hi
    Good to see i am not the only one that hangs on their own web site..lol You might want to let him know because I don't have any info now that the post is gone. I was waiting for him to show he was for real and wanted to do the work. I would call him and let him know but that was on the post as well.lol If you have it I will let him know the reason in the morning. Thanks again..Keith

  • Los Angeles, CA · Member since 2013 · 27 posts · 3 votes
    13y

    WoW! Thanks for this insight. It's what I was looking for.

  • Wholesaler · Three Rivers, MA · Member since 2013 · 77 posts · 4 votes
    13y

    I think this is an excellent post. The processes are starting to resonate with me and I feel much more confident going out and getting up to my elbows in ugly houses. Lol. I think its natural to want to learn from someone who is doing this and doing it right. That expertise can only be learned in the field. I respect the seasoned investors on the site who offer their services and guidance to us entrepreneurs (I refuse to refer to myself as a newbie!). Hats off to you @Kieth Boley. People like me appreciate what you do for us. PM me if you want to talk sometime...I will be signing up for my Pro membership very soon Josh.

  • New to Real Estate · Austin, TX · Member since 2013 · 63 posts · 3 votes
    13y

    Keith Boley awesome post,

    I am curious though. what would you consider a respectful way to ask a mentor to let you be their men-tee if you really cant bring that much to the table due to inexperience in REI?

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    Nicolaas, Keith gave you some good tips. Here is another blog post that might help

    How to Find a Mentor

  • Investor · Jersey City, NJ · Member since 2014 · 22 posts · 3 votes
    12y
    This is helpful and I think committing on paper to yourself is a great idea. Thanks for the post.
  • Newnan, GA · Member since 2014 · 1 post · 1 vote
    12y

    I needed that!......great encouragement!!!

  • Real Estate Investor · Lisle, IL · Member since 2014 · 10 posts · 2 votes
    12y

    Excellent post and great read through on the thread.  Understand about the marketplace aspect of the site and agree....

    Thanks Keith for the excellent advice!

    Chris

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