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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  • Investor · Greeley, CO · Member since 2014 · 17 posts · 3 votes
    10y

    @Keith BoleyThis is a very inspirational piece.

    I like to have a list to go through as I am just starting things out. Its nice to have a check list especially when you don't know what your doing. I have been sitting on the sidelines here on BP mostly listening to the podcast on my commute to work, but its time I take action. I wanted everything to fall into place before I get started but I realize that if I wait for that it will never happen. Thanks for the read.

    David

  • El Paso, TX · Member since 2016 · 12 posts · 3 votes
    10y

    Thanks for the information. I too feel very unorganized as a few said, but this motivates me to buy a big whiteboard and start getting stuff written down and taking action!

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

    HI

    Derek Gomez, David Bohner I just want to thank you for voting and posting here. There is a great product that I use every day called Toodledo. It is a pocket to do list maker that is out of this world. For list people it is a must. I use podio as our CRM and it will sink up with  toodledo and print out a foldable booklet for me to use..It is great..Keith

  • Harlem, GA · Member since 2016 · 3 posts · 0 votes
    10y

    Thank you for this forum! I just joined BP last night-my husband and I are making a complete lifestyle shift into real estate investing currently. We are jumping on every ounce of education we can get our hands on, have our LLC and have found our first deal even! BUT...we've hit a wall in finding financing. I've presented to two private investors-but b/c it's 'tax time' no one is willing to extend. I've looked into HML but all want at least 20% of the deal plus 6mo holding costs in liquid capital before they will even look at you. Do you have any suggestions to navigating a situation such as this? Thanks again!

    Dena

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

    hi I just need some more information as far as what price point are you in as far as the deal. You said you had an LLC set up so did you go through someone's training if so if you don't mind me asking who it is. Also I can give you a couple pointers on where to find funding I just need to know a price point and if you're putting any money in the transaction. What is your exit plan? thanks

  • Fort Worth, TX · Member since 2016 · 62 posts · 15 votes
    10y

    Great advice @Keith Boley

  • Leesburg, VA · Member since 2016 · 30 posts · 5 votes
    10y

    Wow very good advice, Glad I found this website. Got alot to learn I see

  • McDonough, GA · Member since 2016 · 18 posts · 2 votes
    10y

    That advice is awesome, I've read all the comments as well and as somebody brand new to this lifestyle, it's been a great help. Getting started I've heard is often one of the hardest parts of getting into real estate investment and as somebody looking to get into flipping houses and multifamily properties, your advice on making a list is something I'll be doing right after I finish thanking you for the post!

  • Real Estate Investor · Holtsville, NY · Member since 2016 · 11 posts · 1 vote
    10y

    hey

    @Keith Boley , when your doing your due diligence and looking up a properties info at the town hall what are you looking for, what is the department its foind in and why is it important. COs, permits, past code violations, liens etc

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

    hi

    This may not be to place for this question but we will go for it. You want to make sure the name on the house matches, title is in their name,the disruption is correct,the taxes are paid, beds and baths match, lot size, liens ect...Keith

  • Houston, TX · Member since 2016 · 36 posts · 4 votes
    10y

    Thanks for the advice. I will take these tips with me moving forward as I start this journey.

  • Harlem, GA · Member since 2016 · 3 posts · 0 votes
    10y

    Hey Keith-we attended several Fortune Builder events and have dabbled with cash flow diary. I also have a family member that is a successful, full time investor that is mentoring us. Forming our LLC was the product of the FB course and talking to the HML-the one I was speaking with does not deal with private parties-only businesses. Our price point has been limited to what we can raise on our own. The first property that we found-which has to date become our first missed opportunity-was a 55k purchase with projected 35k rehab. We are certainly open to higher price points-but again-my vision was limited by the ability to raise capital to execute ANY deal. I hope this helps and thank you for your response.

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

    It does and a congrads is in order for taking action. Looks like u jave it set up going forward. If i can help let me know. Keith

  • Columbia, SC · Member since 2016 · 3 posts · 0 votes
    10y
    Thanks for this advice Keith 👍🏾
  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y

    your welcome. There is another part to this posted under secret #1 the big why

  • los angeles · Member since 2016 · 7 posts · 3 votes
    10y

    This is wonderful, and a great help to get started-- thank you!

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

    You are so welcome. Let me lnow of i cam help. Keith

  • Forest Hill, MD · Member since 2016 · 18 posts · 3 votes
    10y

    Keith,

    As others have mentioned, great advice. I am also new to REI and eager to learn while utilizing my strengths and skills to achieve new financial goals. The podcasts on here are great and your response above echos all I have learned so far. I'm looking to take the next step and start to attend local REIC meetings. Thank you for taking the time to share your wisdom.

  • Bronx, NY · Member since 2016 · 9 posts · 2 votes
    10y

    Hello,

    I am interested in finding a mentor to learn about investing in real estate and also in wholesaling contracts. Since 2010, I always wanted to get into real estate but did not where to begin. I currently live in NYC but I am interested in doing wholesaling. Can someone point me out to a mentor who specializes in wholesaling as well as the forms that are required to assign the contract?

    Thank you,

    Jennifer

  • Harlem, GA · Member since 2016 · 3 posts · 0 votes
    10y

    I have another question-does anyone have experience/knowledge to the concept of setting your business LLC up in Nevada vs. the state you reside in? I've been instructed the corporate veil is 'impenetrable' there-and apparently easily pierced here in Georgia. There's a company that does it for you-for 1200.00. Wasn't comfortable and wanted to see if anyone has had experience with this-thanks in advance.

    D

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

    Hi

    We, as a company went through this very same thing. I think the biggest thing you can do is research the company several places to see if they have had any issues with other people that have used their service. Second, you can do most of this yourself through we the people or legal zoom. The hard part is keeping up on the paperwork with your meeting minutes and so on. This is were these type of companies come in to help. If they do the meeting minutes for the first year and file all the docs needed to make you legal, then you might want to look at them. Keith

  • Newport News, VA · Member since 2016 · 12 posts · 3 votes
    10y

    Hi All! I am new to BP and RE all together. I was wondering if anyone had any feed back as to whether wholesaling is a good method to raise money for buy and hold investments that will create passive income. I am interested in wholesaling because I see this as a means to build the funds needed for down payments. I have been following Sean Terry podcasts and they are great for motivation and basic information while giving me a lot of DOTS that I would like to connect..lol, however sometimes I just feel he makes it sound too easy and anything worth having is not supposed to be easy to acquire. Due too very poor credit traditional loans and credit funding are not options for me. I really don't want that to hold me back. I currently am able to live comfortably off of my employment income and feel that if I was able to generate about 1-2 deals per month I may be able to build the money needed to branch out into more passive income options. Any advice or direction would be AWESOME! Thanks so much for reading! 

  • Whittier, CA · Member since 2016 · 45 posts · 4 votes
    10y

    Great motivation and informative post! Any investors willing to network, me and my husband are looking to build great relationships and learn as much as we can from experienced investors.

  • Houston, TX · Member since 2016 · 7 posts · 1 vote
    10y

    I think that to-do lists are vitally important to ones' success. Our minds can get overloaded on a daily basis and these lists help to keep us on track. Great article!  

  • Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    10y

    I just finished reading this thread from beginning to end and have taken notes from @KeithBoley and a couple of others. Thank you for your insight and sharing your experience. 

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