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

186 Replies

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  • Real Estate Investor · Boulder, CO · Member since 2014 · 6 posts · 5 votes
    12y

    Thank you for this post! Very motivating and great advice!

  • Real Estate Investor · Minneapolis , MN · Member since 2014 · 169 posts · 33 votes
    12y

    Hi Keith you have summarized it quite well. 

  • 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)

  • Denton, TX · Member since 2014 · 3 posts · 2 votes
    12y

    great post by all!

  • Buford, GA · Member since 2014 · 2 posts · 1 vote
    12y
    Thanks, great quick tips!
  • Rental Property Investor · Baltimore, MD · Member since 2014 · 8 posts · 2 votes
    12y

    @Keith Boley Where are the seven levels deep you wrote about for #1?  I did a search and didn't come up with anything. 

  • Investor · Fort Myers , FL · Member since 2014 · 8 posts · 1 vote
    12y

    Awesome post. Its not hard to build a clean foundation from this community. I never would have imagined there were so may people in my area who are real estate investors. In just a week of being on here I've learned so much and even have a short buyers list. I'll be going to my REIC meeting next week and I hope to make many contacts and push forward to making my first deal.

  • Flipper/Rehabber · Chicago, IL · Member since 2014 · 18 posts · 2 votes
    12y

    Any advice on how to build a buyers list?

  • Lawrenceville, GA · Member since 2014 · 1 post · 0 votes
    12y
    Keith I really appreciate this info. I'm currently at the beginning stage and I'm taking this info as my personal guide. I would be interested in speaking with you further if possible. Thx for everything!
  • Real Estate Investor · Minneapolis , MN · Member since 2014 · 169 posts · 33 votes
    12y
    Originally posted by @Joshua Smith:

    Any advice on how to build a buyers list?

     Some of the ways I used to build buyers list are

    1. Recent sales with no associated mortgage 

    2. Wholesales and re-habbers in your area can be a good bet

    3. Searching public records to find transaction related to private lenders in your area 

    Feel free to contract me for more details. 

  • Real Estate Investor · Aurora, CO · Member since 2014 · 2 posts · 0 votes
    12y
    I'm a brand new investor here in the Denver area and have yet to find a "solid" deal. I had a house under contract but learned a hard lesson. You definitely cant sit on finding hard money lenders or even private lenders. I took too long, was unable to get it financed and lost my $2000 EMD and my realtor fired me. I wasn't too sure on the comps for the property either and my ex business partner and I disagreed a lot of that. Property was in the Berkeley area but it is still on the market today. It is a a property that will take a LOT of work. Guess I should have backed out of it right then and there as it would have been a gigantic undertaking for my first flip. Anyway, that's what my past has been with flipping and it is taking me a little bit to get the courage to take the giant leap again so if anyone is willing and able to assist me in any way I would be eternally grateful. Latoka
  • Residential Real Estate Agent · Eastpointe, MI · Member since 2014 · 231 posts · 52 votes
    12y

    Hi Keith,

    Just wondering if you're looking for students to mentor in the California area or anywhere?

  • Rental Property Investor · Montrose, CO · Member since 2013 · 9 posts · 0 votes
    12y
    Do you have a link to Dean's article about the seven levels deep? I am struggling with finding it.
  • Wholesaler · Lisle, IL · Member since 2014 · 3 posts · 0 votes
    12y
    Thanks , I needed to hear this!
  • Real Estate Investor · Memphis, TN · Member since 2014 · 156 posts · 101 votes
    12y

    I love #4.  I am going to start my list immediately!

  • Specialist · Overseas, Overseas · Member since 2014 · 20 posts · 1 vote
    12y

    Regarding 'working with a number of agents'. I was wondering how I could do that. Currently I'm working one agent, but I'm looking a town a bit out of their area, and I thought of getting someone more local. I'd have to tell the people I'm working with that in the other area, I contacted another agent?

    I would love to have one agent really go to bat for me, and know that I am loyal, I'm just not that comfortable that they are the best source in that other location, and I want to look in a wider area.

    Thoughts?

    Thanks,

    Ron

  • Flipper/Rehabber · Chicago, IL · Member since 2014 · 18 posts · 2 votes
    12y
    Originally posted by @Atchut Neelam:
    Originally posted by @Joshua Smith:

    Any advice on how to build a buyers list?

     Some of the ways I used to build buyers list are

    1. Recent sales with no associated mortgage 

    2. Wholesales and re-habbers in your area can be a good bet

    3. Searching public records to find transaction related to private lenders in your area 

    Feel free to contract me for more details. 

     Thank you I will be contacting you @Atchut Neelam

  • Sanford, FL · Member since 2014 · 17 posts · 4 votes
    12y

    That s some good info.

  • Woodland Hills, CA · Member since 2014 · 5 posts · 0 votes
    12y

    Hi

    I am so happy to have found this forum. I have signed into both forums so that I can further educate myself and proceed with this exciting area. I have some very nice relationships with REO commercial assets and portfolios and would love to connect with an investment partner to be able to flip these. Your advice and guidance is so important to me, to have sincere guidance is what I need.

    I would love to just be able to talk with you and confirm I am heading in the right direction. Please know in advance, how grateful and appreciative I am of any assistance you can provide.

    Thank you -I have questions.. and look forward to being a part of this lovely forum

  • Involved In Real Estate · Chicago, IL · Member since 2014 · 52 posts · 8 votes
    12y

    I really needed to read this! Thanks alot @Keith Boley 

  • Malverne, NY · Member since 2014 · 4 posts · 0 votes
    12y

    I live on long Island and I am looking to get started by buying a multi-family home and renting it out to start. Should I be looking to do something different like wholesale do to the high taxes on long island or even go out of state and get a couple of different multi-families. from the books I have been reading I get mixed signals about out of town land lording.

  • Bronx, NY · Member since 2014 · 4 posts · 1 vote
    12y
    I couldn't help but notice that you are seeking two students to mentor. I am a young fresh beginner and I'm interested in becoming one of those students. I know that I have the drive and the skills to get into real estate I just need an experienced mentor to put me on the right road to success.
  • Albany, OR · Member since 2014 · 16 posts · 3 votes
    12y

    Thank you. I got a few things out of this for my list 

  • Real Estate Investor · Atlanta, GA · Member since 2014 · 8 posts · 2 votes
    11y

    I took notes.  Great post.  Thanks.

  • Stafford, VA · Member since 2015 · 18 posts · 1 vote
    11y

    Are there any seasoned investors in the Stafford, VA area?

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