@Salvatore Lentini

If a recent college graduate with loans to pay, and not enough money of their own to invest came to you to ask you to mentor them/invest with them—what key points/pitch would you want to hear to be persuaded to go into that? Analyses? Numbers? Other things?

As well, what is some of the best, hands on advice you would give them to go out and learn more in a concrete way? Any and all advice would be appreciated!

@Tim Hudson

Interestingly, keeping it simple is what I was told.

My investment advisor told me that he wanted me to buy a rental. He said he didn’t care where or anything. Start with something small. He explained the 1% rule and said that’s all. Go and do it. Best advice. Got me started. I knew very little but it got me going and I got a decent deal. I now have 11 doors. Have learned a lot more along the way and built spreadsheets and know more. But that got me going. Keep it simple. You’ll learn more by doing one deal than reading and hearing about a hundred.

@Salvatore Lentini

Living in an expensive market NJ/NYC.

Gaining more confidence in evaluating deals and researching markets.

Researching more out of state investing. Currently reading Long Distance Real-Estate investing.

I think overall the only thing holding me back is structuring a solid plan. I would like to do out of state income properties and do flips in NJ. I evaluated whether I should get a real estate license or take home inspection training. Only because you hear the horror stories of bad contractors or agents and having the knowledge myself would help me be a better overall manager.

@Salvatore Lentini . Thanks so much for this posting. I am a new investor and would like some direction with private lenders and/or online lenders. I am doing a lot of research, training classes, etc to build knowledge in the business and to be successful. Any direction would be appreciated as I'm trying to get my first property.

Thanks in advance

@Leslie N Harmon

Check realtor.com. I use the app version of the site all the time. You can look up all listed properties in any town.

Besides that Zillow, etc. you don’t need a realtor to look at listings. Will give you some ideas on valuation too.

Rentometer.com will give you approximate rents you can expect for the area.

Google the address and get a street view and satellite view of the property and neighborhood.

Talk to some Local banks and credit unions. I’ve found some that offer 10% down loans on the first 3 properties. Not all require 20-25% down, because some hold their own loans instead of seeking them through Fannie/Freddie. Call all local banks and credit unions and ask them on t he phone what they offer. Tell them you’re buying rentals, single units, duplex and 4-plex. And ask about their tents and what they require down. First question I ask is “Do you sell your loans or keep them in house?”

@Goziem Ononye

Save up for a down payment. If you can get an FHA loan, it's a slow as 3%.

Look at some of the online websites for properties. Zillow, Realtor.com to get a feel. Network and meet people.

Pick an area you’re interested in if not your local area. If you live in the Midwest, start there. Almost any town. Then ask around on BO for a certain city. Find people and network.

I had heard the Midwest was good for Cashflow and started looking there.

@Kris Tidwell

Reading and listening to podcasts on BP should get you excited and not depressed or fearful.

Try to fing a small deal and start. You can’t learn just by reading and listening. If not sure, run your deal by a friend or post it on BP for some input. Find someone who can give you some feedback.

@Kesha Ferguson

Look at FHA for your first deal. Buy a duplex or fourplex and live in one and you can get 3% down financing.

Saving to buy my first home. Plan to house hack the basement. Looking to do a FHA loan and Reno property before moving in.

Any tips on that process? Thank you for your time

@Patrice Holloway

I found a local credit union in my town that does 10% down. Call every lender in your town and ask. Also consider FHA if it's your first. Requires 3% down.

@Salvatore Lentini I'm an engineer (and a DISC type C). I'm aware of paralysis by analysis but I really do like to try to consider all the angles before jumping into a deal or project or anything else. I know I still have lots to do and learn before jumping into my first deal but right now I want to do these things before I really "get serious":

-Find an agent that primarily works with investors on the buying side.

-Finish LLC Operating Agreement (with my wife) and open corporate bank accounts

-Get HELOC

-Round out team - attorney, CPA, lenders, contractors, wholesalers, etc.

My goal is to buy my first property this quarter. I like the idea of having passive income (small multi-family) but I think I need to learn the rehab/estimating side of things so I'm leaning towards flipping a SFH or two or three first. Maybe BRRRR them. If a great multi-family deal crossed my path I'd have a hard time turning that down though!

@Jason Lehn

There is a FHA renovation loan that I have no personal experience with but was mentioned in one of the BO podcasts. Sounded like it was a pain to do with putting Some Money in escrow etc but can be done. Call around and ask lenders. Ask around and search BP and see what you find.

@Salvatore Lentini Great points, I 100% agree with you about coming up with an effective plan first. I think that's one of my biggest hurdles. Definitely going to sit down and really work on that, thank you for that advice. 

@Kesha Ferguson

I believe if you house hack, you can put down as little as 3.5% (FHA loan)

@Phil Denton

You’re in one of the golden cities in the Midwest.

Look for properties that are better than the 1% rule there. Mine are all around 1.4%. Avoid any D areas. Don’t want poor rental areas.

Look up and call all rental Management companies in your area. Get their details. Ask them if they will look over your properties that you're interested in. A good one will. Before you buy it. They don't want to manage in a poor area usually. Just by giving them an address and details on the property you're considering, like # beds and baths, garage or parking, SFR of roof, hvac, etc and sending them some pictures they can give you a good deal of info and tell you what they could get in rents there and what the neighborhood is like. And if you should buy there or not. If they want to manage there or not. They're your best consultants. Some will do a site visit for you, sometimes for a fee.

I wish I lived in your town or state. Use the rental management company. They know real estate. Having said that, I had to fire my first rental management company and the one I have now is great. First one wouldn’t do what I just listed. My current one does. But you can’t learn all of this from books. Gotta do a deal or two. Then you know. What other people know and try to warn you about. But don’t get discouraged. Takes a learning curve to get going. And you’ll waste some time, effort and money in the process. But I think you have to go through it. No pain, no gain.

@Salvatore Lentini

My age because how hard to find fund to buy it.

Originally posted by @Phil Denton :

@Salvatore Lentini I'm an engineer (and a DISC type C). I'm aware of paralysis by analysis but I really do like to try to consider all the angles before jumping into a deal or project or anything else. I know I still have lots to do and learn before jumping into my first deal but right now I want to do these things before I really "get serious":

-Find an agent that primarily works with investors on the buying side.

-Finish LLC Operating Agreement (with my wife) and open corporate bank accounts

-Get HELOC

-Round out team - attorney, CPA, lenders, contractors, wholesalers, etc.

My goal is to buy my first property this quarter. I like the idea of having passive income (small multi-family) but I think I need to learn the rehab/estimating side of things so I'm leaning towards flipping a SFH or two or three first. Maybe BRRRR them. If a great multi-family deal crossed my path I'd have a hard time turning that down though!

If you suffer from Paralysis my Analysis, I would narrow your investment strategy.
Flipping is very different from buy and hold(passive).

There are many different types of investment properties you can buy depending on your experience/ability to fix up.
Paint and carpet touch-up - This investment property doesn't need much in get it rented out
Foundation issues/fire/water damage houses - This type of house will be the best bang for your buck but it will require a lot of experience and expertise.
Somewhere in the middle - this type of investment will need potentially a roof redone, water heater replaced, furnace replaced, mold removed, etc. You likely won't need to fix the house yourself but it would help if you had a good list of contractors. 

You may want to start off your investment in 1Q with a paint and carpet touch up and move up from there.

@Michele Z. a good agent will recommend several lenders to meet a buyers needs. Not just blow someone off. But a good agent also doesn’t won’t anyone wasting their time. That’s why pre approvals are so important to agents.

Some of the tips I can give a person starting out is :

it’s ok if you don’t get a grand slam deal out of the gate . 

You don’t need to focus on step 11 -just get started 

You donot need a giant pile of money to get started ! Honestly it’s true 

There is safety in numbers -the more doors you have the easier it gets oddly enough 

Understand there will be crushing defeats and a big learning curve there will be times it can be overwhelming. Donot he surprised by this 

It doesn’t have to be a beautiful newer home in a nice area  you can make money in all class neighborhoods 

If you don’t know something bring in those that do , don’t guess and hope things will work out 

As you gain momentum you can use OPM and scale out but for now just buy something 

You WILL  suffer setbacks It will not be a cake walk and you must not give up . If it was easy everyone would be investors . You must Keep moving and fail forward . 

Surround yourself with others smarter than you or more experienced - your network is your net worth 

You must network with others to grow And scale .If your doing everything yourself alone you will likely never be truly wealthy until others come on board 

@Salvatore Lentini

Hello! Something that’s holding me back from buying my first investment property is financing and confidence really. If you know anyways to come up with creative funding I’d appreciate it. I’ve already heard about seller financing.

@Salvatore Lentini

Thanks for starting a good discussion. What's holding me back is that I am looking to invest OOS. What's holding me back is #1 Selecting a market to invest in. Ideally my first OOS investments will be within short flight/driving distance for me. So I am looking between Nevada and Arizona - leaning towards the Phoenix market. The issue I'm having is that Phoenix MSA is an enormous area. So I need to narrow down my search - but this is difficult to do without knowing the area and not being able to see it in person. My #2 issue is with how to build my team to help me accomplish #1 (narrowing my market) and be the "boots on the ground." My fear is in the fact that I have to select people to view my property for me, estimate rehab costs, and then perform those tasks on time, professionally and without taking advantage of me. I'd be able to travel every few weeks to the area but I would need someone who would be able manage the day-to-day process of rehab on the property. I wouldn't have issues with expanding into any OOS market as long as I have my core team in place - but building this team and ensuring they have our collective best interest in mind is the thing that's holding me back!

Originally posted by @Leslie N Harmon :

I haven't been able to find the right properties on my own. I also in the past was unable to get Realtors to provide me with listings. The Realtors wanted to make sure I had been approved for financing 1st. 

Is it required to get approved before looking for a property?

And also Analysis paralysis is also an issue for me. Thank you.

 its not required to be approved first but the realtors dont want their time being waisted. You got to bring some value to them for them to give you something.

Originally posted by @Salvatore Lentini :
I have a rental portfolio of 127 units and soon to be 147 units.  I've experienced a lot: wholesaling, flips, single family rentals, multi family, office, triple net commercial, development...and now it's time to give back :)

So, fire away...what's holding you back from getting started?  If you could have your biggest questions answered, what would they be?

I just Bought my first deal. Two lots and Two houses for the price of one. I just didn't take no for an answer and made it happen. had to pay asking price but negotiated all repairs in it. jump on em fast and don't hesitate.

@Salvatore Lentini

I actually have one investment property already. Bought it 4 years ago. However, haven't been able to find anything else. I live in a hot market - Denver area - and no matter which house I am looking at I come up with a negative monthly cash flow. This is because I am planning on using our HELOC as a down payment, and in the model I am assuming that I am paying off HELOC as well as the new mortgage.

All in all, it seems like the biggest factor in moving forward is finding a good deal - priced well with enough equity. Now the question is - what is the best way to find those, especially if I have a demanding full time job?