@Kris Tidwell - real estate books are great for planting the initial seed and outlining steps and strategies but you'll always feel like you don't know enough... that you need to read one more book or learn one more strategy. Meeting real people, real estate investors "out in the wild" is what will give you the confidence to start investing. We all have these visions in our heads when we're looking to buy that first property of what a real estate investor is like. The reality is, they are just totally regular people like you and me. Once you realize that, making the leap becomes a lot easier. So, read a few books, attend some meetings and start looking.
@Patrice Holloway I am int he same situation. My husband and I are in the saving faze and by spring we should be able to have enough for the 20% down + additional savings for rainy days. What is your savings strategy?
@Josh Rodriguez - how to go about handling debt varies from person to person. It depends on a lot of factors: how much income you have coming in, how much those monthly payments are, what kind of interest rate you are paying, what point in the amortization schedule you are in, what kind of access you have or think you'll have to private funds, the type of property or properties you plan on buying, comfort level with risk and debt, long term plan, etc. There's no reason why you can't do both (pay down debt and invest in real estate). Like I said it all depends on the plan. Maybe you get a plan in place to pay down debt, while you start looking for an investment property. Say it's a flip. Maybe you partner with a family member or a friend or a coworker...anyone with money but no time. They put the money up, you put in the sweat equity. They get 70% of the profit and you get 30%. You're still paying down your debt but when the flip is done, maybe it profits $25K. Your 30% stake gives you $7500 that you can use to invest in another deal where you put some "skin in the game" and get a higher percentage. Maybe 60/40 or 50/50. Or you use the $7500 to pay down more debt. This is just one path of many but I'm mentioning it to show you that whatever your situation is, there are ways forward. You just need a plan.
@Alexander Kempf - Yes I work with private investors on all of my investments but in different ways. It all depends on the deal and how the numbers play out. Sometimes I work with private investors by doing high interest 8-12% interest only loans. I buy the property cash, rehab with cash and then when complete and rented I refinance the property and get a 30 year low interest mortgage. I use the refi money to pay back all of my lenders. Other times I work with private investors by giving them equity in the deal but no interest only payments. Their money goes into the purchase and rehab of the property. When it's done we either refi and get everyone paid back while they retain their equity, or their money stays in and the property just cashflows better. Either way, I am into the property for nothing. Or sometimes it's that same scenario but I put "skin in the game" so I can get higher equity. Getting private lenders definitely helps with real estate investing...especially if you want to grow quickly or build a large portfolio.
Buy and holds 3-4 Multi-Fam, build a portfolio is my goal, start off as owner occupied. Eventually scale to bigger units. If you could give me a few tips for step 1. I’m done waiting and overthinking I’m ready to pull the trigger.
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!
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.
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