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

    Hi Will

    Thanks for reading the thread. I hope that you use the info to make your investing more simple..keith

  • Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    10y
    Keith Boley I heard in last weeks podcast that it is best to take many pics of the property periodically as you rehab it. What do you think about that?
  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y

    I would agree it's nice to have pics of a rehab going from start to finish one to show investors too in case something came up down the road and you need to do to prove that it was done

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    10y
    Originally posted by @Account Closed:

    Accountant from CT looking  for partner

     What are you looking for Luke

  • Investor · Denver, CO · Member since 2016 · 85 posts · 22 votes
    10y

    Thanks for this post! I'm going out on a limb here, but.... are there any seasoned mentors in Atlanta looking to split some deals and help a newbie get started? I can offer 15+ years in residential remodeling and construction. I'm was a GC and now I work full time as a PM/builder. I have access to several streams of OPM to utilize in deals. I have one rental right now with a goal of 1000 units. My mission is to leverage the power of REI to defend the poor, weak and vulnerable in our world. I want to join with hundreds of other RE investors and change one life at a time through education, life coaching and building sustainable businesses all over the world. When I die, I want my legacy to be that I lived for the sake of others victories and helped every willing person achieve the next step in their journey. Are there any mentors out there who want to help in this?

  • Baltimore, MD · Member since 2016 · 8 posts · 1 vote
    10y

    thanks for this post !!!! 

    Great encouragement 

  • Chicago, IL · Member since 2016 · 8 posts · 2 votes
    10y
    Keith Boley Can you guide me in the right direction of everything that comes with real estate? I'm interested in learning the ropes of this , I've reached out to other investors etc but not all are willing to mentor . I'm only 21 but I want to develop a plan for myself . I self educate, I read & I learn something new everyday from my books and online researching . I feel with more guidance I can end up on a path of success one day in my future .
  • Los Angeles, CA · Member since 2016 · 9 posts · 6 votes
    10y

    In reference to #4, there's an awesome e-list from a site called www.any.do that I use. It has exactly that - and you can put dates on the things in the "Soon" column so that it shows up in your "now" right when you need it to. Good way to push you to keep the right things in mind as you go down the funnel. 

    Great advice, it turns thoughts into actions so much quicker. 

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

    hi 

    Thanks for your in put. KEITH

  • Lowell, MA · Member since 2016 · 1 post · 0 votes
    10y

    Thanks Keith for such a helpful post.....

    Also thanks Alison Shurter for your referrence to www. any,do

  • Boston, MA · Member since 2016 · 1 post · 0 votes
    10y
    Great advice thanks.
  • Fairfax, VA · Member since 2016 · 4 posts · 0 votes
    10y

    @Keith Boley Great Post, really good info!! I'm seventeen years old, and I really want to take action in Real Estate investing, specifically wholesaling. I have read a book and various articles on the subject, so I already have a general understanding of how it works (although I still want to learn much more). I've though out an action plan on how I want to approach wholesaling, however my parents feel pretty skeptical about allowing me to pursue this while I'm still in school. Do you have any advice on how I should convince them to allow me to do this, or anything specific I should keep in mind when starting out as a wholesaler? Any help or advice is much appreciated! 

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

    Hi Andy

    Parents always think they are looking out for our best interest and they mean well but you should always follow your dreams. Even if you fail you fail fast and learn what not to do the next round. Va is my home state and I am coming back in Dec to put on an event as well as look at some property. Roanoke is the location for this. Would you like to know more info on it? If so I will fill you in but the mom and dad might buck..lol  Keith

  • Fairfax, VA · Member since 2016 · 4 posts · 0 votes
    10y

    Thanks for the advice!! I would love to know more info on your even coming up in December, and I'll plan ahead to start convincing my superiors, and make sure I don't miss out in it. Thanks for the offer.  Andy

  • Wholesaler · North Hollywood, CA · Member since 2016 · 72 posts · 31 votes
    9y

    Thank you for the post. i learnt new things. I have a question regarding yellow letters.  Do i hand write it or type on computer then print on a yellow paper? 

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    9y

    Hand write. You can gwt them printed in your hand writting.

  • Pueblo, CO · Member since 2016 · 2 posts · 0 votes
    9y
    Keith Boley, Thank you for all those amazing tips to get started. Although those are great tips, I would like to ask a very serious question. Knowing what you know now and seeing all the success you've created, "what first steps should a very young ambitious real estate investor (like myself) do to get started"? I am 20 years old from Pueblo Colorado. I know many people might think I'm a little crazy or too young to be getting myself into real estate investing at such a young age; but one thing I realized over the past year of learning about real estate investing is many people start doing this later in their lives to seek more financial freedom or as a retirement plan. Just to be clear I hope I do not offend anyone that is investing in real estate later in their lives for a retirement plan. I think it's a great plan for people. As for me, I want to learn the business NOW to set myself up for the rest of my life. I am currently a student at Colorado State University-Pueblo. I am studying business and marketing as of now but over the past year real estate investing such as "flipping" or "wholesaling" has really caught my attention. I am taking a semester off to focus and learn as much as I can about investing in real estate. I have a distant elderly family member that has done this in Pueblo. She has built a real estate empire and has found tremendous wealth. What's amazing is she started when she was 50 years old. I have attended the free Fortune Builders program, created by Than Merrill. Although it was a good overview on investing in real estate, I have found they just end up making you pay top dollar for their programs. One thing that stood out to me was that I was the youngest person in the whole room which caught many people's attention. I even ended up speaking with one of Than's students and she thought it was amazing that I wanted to start learning this business at a young age. The reason why I want to learn now, is because people all over the country are migrating to States that have legalized recreational marijuana. Not only that but Pueblo has been said to be the marijuana capital of Colorado. On top of it all Pueblo provides a very cheap living. So basically what I am saying is the population is growing, and when that grows the real estate must expand. I feel their is a good opportunity here. Sorry for the multiple paragraphs, I just wanted to give you a explanation on some topics. So the main question is "what would you do if you were in my shoes to get started on investing in real estate"? Don't worry I take tough criticism well. I may not know everything about real estate investing but I definitely know more than you would expect. This is why I'm reaching out to not only you but any other new and experienced investors. Thank for your time, hope to hear feedback.
  • Investor · Elizabeth, CO · Member since 2016 · 32 posts · 29 votes
    9y

    Andres, tho i too am starting out let me put this simply. Define what you want, pick the niche that serves you best, master that niche thru the plethora of info here. No one can tell you where to start till they know where you want to go.

    Or let me put it another way, im afraid of heights. If somebody  told me there was a bag with a million dollars in ot at the top of a 50 foot tree, i would overcome my fear and clomb up that tree as fast and safe as possible. Real estate investing  is no different.  Keep us posted. BTW Im 55.

  • Pueblo, CO · Member since 2016 · 2 posts · 0 votes
    9y

    Thank you for responding @Mark Caudill. The path I want to go is to focus more on is rehabbing properties. I feel like that best suits me rather than wholesaling which I might go into later through experience. I have a uncle who is a real estate realtor here in Pueblo that is showing me the strings on how real estate works. It's just good to hear from other peoples view who are in the processes also. 

    I'm not trying to jump the gun and and go into real estate investing without knowing everything about it. The main goal for me is to successfully rehab a home. I'm sure you can ask any successful investors.... They all started with that 1 house.

    Thank you for the advice!

  • Investor · Elizabeth, CO · Member since 2016 · 32 posts · 29 votes
    9y

    So buy and hold.

  • Charlotte, NC · Member since 2016 · 7 posts · 2 votes
    9y

    Thanks. I am new to the real estate investing world and I needed to read this. Get off the fence and set and check off some goals. I appreciate this post. I have been motivated to move forward.

  • Jersey City, NJ · Member since 2016 · 6 posts · 3 votes
    9y
    Hi Thanks for the tips . Can you guide how can I find properties before they hit the mls listing?
  • Charlotte, NC · Member since 2016 · 7 posts · 2 votes
    9y

    @Keith Boley. Thank you for posting this. I just happened across this post and I must say that I felt a spark reading it. I am new to the world of real estate investing and I have been doing so much reading that my eyeballs are about to fall out. I am eager to get started and have been checking my local REI clubs and signing up for the next meetings. I have also been asking questions of others in the business on here and other sites I visit. I am setting small attainable goals and will take the suggestion of using the list. I love that idea. Thank you for pumping me up.

  • Curtis CloudenPro Member
    Investor · Ewa Beach, HI · Member since 2015 · 15 posts · 2 votes
    9y

    As a new investor this is some great advice. Thank you

  • Rental Property Investor · Lompoc, CA · Member since 2010 · 197 posts · 183 votes
    9y

    Thanks Breana, Eric and Curtis for your input. If you use some of these ideas you will see results..Keith

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