Please advise on how to proceed.

[Nick Papayiannakis]

Hello everyone!

I will start by expressing my respect and admiration for the vibrant community of investors helping one another for the mutual benefit of all here at BiggerPockets. I also wish thank all those who take time out of their schedules to contribute articles and answer questions for up and coming investors and seasoned veterans alike. I wish one day to be able to give a helping hand to the degree that you do.

To get down to business, I am having trouble deciding the order of certain steps to take in my action plan and I would like to hear your opinions on how to proceed. I have established the following plan for the short term (next 12 years):

1. Set goal (In 12 years I will own 35 units with a minimum CFAT of $100/unit/mo.)
2. Organize household budget
3. Educate myself
4. Attend investor's clubs
5. Establish a team
6. Create a business structure
7. Begin investing proper (market research, ads, cold calls, door to door, etc)
8. Purchase 1 fourplex every 2 years beginning in 2015 for the next 12 years to gain experience.

In short, I am unsure of how to proceed about steps 4-6. Should I attend clubs to learn but risk appearing foolish since I do not have a "investment business" to back me up? Should I set up a business structure, print some cards, and then network? Do I even require a business structure this early in the game or will a team consisting of an attorney and accountant suffice? Should I hold off exposing myself to others until I get 1 or 2 multi-families under my belt to build credibility first?

I will be leaving for europe in January for half the year and wish to know how to proceed in the interim. I understand that networking and relationships are very important in this business and do not wish to destroy my reputation before it even exists.

Thank you in advance and I look forward to your replies,

Nick

[Alison Robinson]

Hi Nick,
I am a new investor as well. I am not bold enough to give you advice on your approach, but I can share with you mine. About eight months ago I made a decision to start investing in real estate. It is something I have thought about off an on for many years - as far back as the Carleton Sheets infomercial days. I finally decided to just do it! I wanted a partner to share both the financial risks as well as someone to discuss strategy and approaches. I asked the one person I trusted completely and who was financially positioned to match my contribution – My brother. Our approach is to focus primarily on cash flow today with intent to hold for 10+ years. We closed on our first SFH in December. The property is rented and cash flowing at $300+ a month. We purchased a second property in March, all cash. We are currently in the middle of a complete gut and rehab. The property is only 1000 sqft but it is proving to be every bit the learning experience we anticipated. Our short-term goal is to purchase four properties this year with a longer-term plan to supplement retirement from our primary jobs in ten years. Our long-term goals are still under development. We made a conscious decision to take an aggressive path and just get started. We are minimizing our risk and gaining experience/education as we go. I spend most of my free time analyzing properties and researching investment strategies.

Thanks
Alison