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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  • Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes
    11y

    Thank you for sharing

  • Investor · Stone Mountain, GA · Member since 2015 · 19 posts · 6 votes
    11y

    I love this post. It's a great read. 

  • Wholesaler · Deland, FL · Member since 2014 · 17 posts · 3 votes
    11y

    This is a great post! thanks for sharing! looking forward to learning from all  of the seasoned investors here on BP. and I cant wait to share my first success story with all of you!

  • Realtor · Orange County, CA · Member since 2015 · 74 posts · 13 votes
    11y

    These are so great tips to keep me motivated. It may get rough but you have to keep on keeping on if you want to be successful. Thanks for the tips!

  • Edmond, OK · Member since 2014 · 34 posts · 5 votes
    11y

    I know that this is an older post but it rings true for me.  Really good advice.  I appreciate your thoughts.

  • Las Vegas, NV · Member since 2015 · 3 posts · 1 vote
    11y
    Hello Keith I loved this article. Really gave me a lot of good beginning info. I'm trying to learn as much knowledge before I just dive in. I was wondering if there was someway I could contact you?
  • Flipper · Hagerstown, MD · Member since 2015 · 51 posts · 16 votes
    11y

    @Keith Boley Your original post is very informative. I am new here and cant wait to see what else I can learn!

  • Real Estate Agent · San Diego, CA · Member since 2010 · 85 posts · 43 votes
    11y
    Great tips! Thank you. I've been a member of this forum for years, but have never reached out to anyone for the help and guidance I need. I'm sure that's why I haven't progressed at all in the industry. I have the same questions I had years ago, and no one to really answer them for me.
  • Hollywood, FL · Member since 2015 · 3 posts · 1 vote
    11y
    Hey I'm new into the RE business & seeking some advice for mortgaging my first home or duplex to rent out. Any advice is greatly appreciated!
  • Fort Worth, TX · Member since 2015 · 26 posts · 1 vote
    11y
    Hi, I'm kind of confused I'm new here and would really like some help but I see people coming in and getting onto others for giving advice. I thought that's what these forums were for. I'm afraid to ask for any advice seeing that. I'm doing this by myself and I really want to succeed at it but I need help. I know I can be successful with some help and guidance. I have a property that I'm looking for funding for but I'm not sure where to get it. I'm not new to real estate I was a realtor for 5 years. So I have some knowledge already. The area of investing is new to me. Elizabeth
  • Bank Teller/Personal Finance Educator · Columbus, OH · Member since 2015 · 50 posts · 4 votes
    11y

    Thank you for sharing this advice and wisdom! 

  • Realtor/Investor · Ft Lauderdale/ Miami Florida · Member since 2015 · 311 posts · 104 votes
    11y

    Thank you for the post! This is great, I have some of the basic steps in motion 1-4 and I am working on number 5 now. I don't want to come off as a fake and say "I am Yasmine an Investor" ... I am not an investor YET, so I am basically telling people what I plan on doing and explain that I am simply trying to build relationships and make connections/start conversation.

    Anyway, thanks again for the post :)

  • Engineer · Abu Dhabi, U.A.E · Member since 2015 · 39 posts · 3 votes
    11y

    Thanks for the information.... Will make sure I put them into action....

  • Contractor · Fresno, CA · Member since 2015 · 1 post · 0 votes
    11y

    You missed a major point, look invest properties of rental return,now by area(like most investor say area is bad) you will never live their and you might not visit this house so see location close to school etc

  • Homeowner · Glen Burnie, MD · Member since 2015 · 3 posts · 1 vote
    11y

    Thank you Keith.  i really appreciate the encouragement.  As a "newbie" I have so much to learn.  However, I have reading many of the posts here on Bigger-Pockets, and it is quite helpful.  I have  taken some small steps forward: purchased the book, Investing in Real Estate With No Money Down, and I am enjoying the read.  I have set up my real estate company, and with my next pay check I plan to purchase the Pro Membership to Bigger Pockets.  

    To start with, I hope to find my niche in the wholesaling market here in Maryland for now.  However, I want to become versatile to the various aspects ts of real estate.

    I have been encouraged by your article to keeping moving forward. It is going somewhat slow for now, but we are moving.  Perhaps I can learn more from you in the coming months.

    Thank you.

    Blessings!

    Dave Gaines

  • Rental Property Investor · Bronx, NY · Member since 2015 · 37 posts · 7 votes
    10y

    Hi I am new to this I started months ago but due to medical issues got disconnected .

    How do you suggest I find a mentor someone to help me get going my computer skills are something in need of a lot of help , but I am very good with my hands .

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y

    Hi All

    I have posted two other secrets to this area as well so watch for the others in the next few weeks. Thanks for a votes you guys (Poet Mior, larry, david ect). Keith

  • Real Estate Agent · Suwanee, GA · Member since 2016 · 27 posts · 2 votes
    10y

    Great advice, thank you!

    Daniel

  • Upper Darby, PA · Member since 2015 · 2 posts · 0 votes
    10y

    Yes I am please give me advice, so many Guru out there and try to sell the education I dont know which one I should follow. 

  • Gino BarbaroPro Member
    Rental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
    10y

    @Keith Boley

    hi Keith

    Great post!  I am in agreement with all of your sentiments.

    Gino

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y

    Hi Anyawee

    There are good ones and there ones that should be taken out and ^&&$%^&&. I understand it is part of there business but you have to give people value. Knowing what I know now is worth 100k and I would pay it because you can't take it from me now. With that said seek out someone you can relate to and that has the same values you do. Check them out, I studied under *************, Ron Legrand who are the real deal. They are not cheap but I know people that spend big $$$ for college and never use it. If I can point you in the right direction I will..Keith

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y

    Thanks for the plug Gino

  • Philadelphia, PA · Member since 2016 · 142 posts · 26 votes
    10y

    I am new to this also. Check out the podcast's for some great advice. I have only listened to 3 so far, but they are very informative. Just start at #1, and look at all the ones that seem to address an issue you have questions about. The one I'm listening to now is:

    Investing While Holding a Full Time Job with Arthur Garcia | BP Podcast 06

    It relates to my current situation quite well.

  • Sparks, NV · Member since 2016 · 10 posts · 4 votes
    10y

    @Keith Boley great read! Encouraging to know there is support.  It's a big deal to get started and a mentor is key to really dig in. 

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    10y
    Originally posted by @Anyawee Anderson:

    Yes I am please give me advice, so many Guru out there and try to sell the education I dont know which one I should follow. 

    You are in the Philadelphia area, so I suggest you start by checking out DIG at http://digonline.org/ - membership is around $150 (they gave a spin the wheel offer at the main meeting that can give you a nice discount off of that but you then must sign up at that meeting), and every year they offer paid training (usually four sessions) for roughly $80 per session (member price); so less than $500 for training specific to the local area. And membership has other benefits as well. 

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