New to investing in real estate

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New to investing in real estate

Andrew Yen
New to Real Estate · Sunnyside NY · Member since 2021 · 17 posts · 3 votes

Hi everyone. New to real estate investing. A little nervous but desperate to get out of the rat race. Looking to try out the BRRRR method. Hoping to get some incite. Any advice would be appreciated.

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Samara HuntleyPro Member
Investor · Charlotte, NC · Member since 2020 · 124 posts · 189 votes
5y

@Andrew Yen Hi. Congratulations on your goal of getting out of the rat race! Real estate is definitely the tool to achieving that goal.

I suggest you get an investor savvy agent in your desired investment location that knows the BRRRR method like the back of their hand. This will enable them to be able to guide you through this process over and over again until you're officially out of the rat race.

My local market of Gastonia NC is a great market to check out for BRRRR's. 75-100k purchase price, around 15k+ in rehab and we usually end up hitting the 1% rule!

Also, just start analyzing deals. The more the better. I suggest using BPs calculators to learn how these deals work with ALL expenses calculated. Vacancy, capex, maintenance, taxes, insurance etc. The more educated you get on the subject the easier RE investing will become!

Good luck, Andrew!

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  • Joshua D.
    Investor · Columbus, MT · Member since 2013 · 1k+ posts · 1k+ votes
    5y

    @Andrew Yen

    Welcome sir!

    The principles from the BRRRR method are certainly powerful.

    Also don't forget house hacking.

    Those 2 things created most of the wealth we have today.

    0Reply
  • Drake Johnson
    Real Estate Agent · Member since 2019 · 21 posts · 18 votes
    5y

    Learn how to analyze deals. 

    Leave emotions out of the decision.

    Read the BRRRR book.

    Do you have more specific questions?

    0Reply
  • Paige Hutchinson
    Real Estate Broker · Gulf Shores, Orange Beach · Member since 2020 · 65 posts · 18 votes
    5y

    I am interested in buying buy and holds using the brrrr strategy also just having a hard time finding the properties that work in our market. 

    0Reply
  • Andrew AdamBusiness Member
    Real Estate Agent · Sioux Falls, SD · Member since 2014 · 159 posts · 111 votes
    5y

    Hi Andrew,

    It is normal to be nervous. I think that finding a local agent and lender in your area would be some important first steps in getting a property to house hack or BRRRR. Don't put too much pressure on your first deal as it is a stepping stone to your future deals and doesn't have to be a forever hold. Getting in now and then having years of appreciation, debt paydown, cashflow and experience is worth not waiting.

         As a recent podcast mentioned "You can't really loose money in real estate". And he was talking about how even if there is a loose when you get started or one year, often the loose can be carried forward and help you on taxes in the future when you have a gain. So there is really not that big of a risk when you look at it like that.

     Best of luck!  

    0Reply
  • Andrew Yen
    OP
    New to Real Estate · Sunnyside NY · Member since 2021 · 17 posts · 3 votes
    5y
    Originally posted by @Drake Johnson:

    Learn how to analyze deals. 

    Leave emotions out of the decision.

    Read the BRRRR book.

    Do you have more specific questions?

     Thanks for the advice. I just bought it on audiobooks because of your recommendation. The author is David M. Greene. 

    I guess I wouldn't even know where to begin to search. I feel like I'm all over the place right now. I live in NYC and we are more tenant friendly. I'm not trying to be a slumlord and I want to take care of my tenants the best I can, but I worry a lot of people would take advantage of the tenant friendly capabilities. 

    0Reply
  • Andrew Yen
    OP
    New to Real Estate · Sunnyside NY · Member since 2021 · 17 posts · 3 votes
    5y
    Originally posted by @Andrew Adam:

    Hi Andrew,

    It is normal to be nervous. I think that finding a local agent and lender in your area would be some important first steps in getting a property to house hack or BRRRR. Don't put too much pressure on your first deal as it is a stepping stone to your future deals and doesn't have to be a forever hold. Getting in now and then having years of appreciation, debt paydown, cashflow and experience is worth not waiting.

         As a recent podcast mentioned "You can't really loose money in real estate". And he was talking about how even if there is a loose when you get started or one year, often the loose can be carried forward and help you on taxes in the future when you have a gain. So there is really not that big of a risk when you look at it like that.

     Best of luck!  

     Thanks for the encouragement! I just got my real estate license and I'm hoping having one will help. I'm not exactly sure how to "house hack". Are there any good books to recommend where I can learn to do so? Thanks in advance! 

    0Reply
  • Drake Johnson
    Real Estate Agent · Member since 2019 · 21 posts · 18 votes
    5y

    @Andrew Yen 

    @Joshua D. has a valid point. The fastest and easiest way to get started in real estate investing is with a house hack.

    I'm not exactly sure where you're at in your journey, but there will be times where you go "HOLY COW I NEED TO TAKE ACTION RIGHT NOW. GO GO GO." Then you'll chill out and be like "What am I doing?"

    We all talk about being stuck in "analysis paralysis" but, I do think it's crucial to have a baseline of knowledge. That book will teach you a LOT. Since you have the audio version I would encourage you to listen to it multiple times. Once you sear that book into your brain, you'll know the next step. Learn as much as possible for the next month. Set a hard date with a note that says, "On this day, I'm going to identify a market and find a damn good investor friendly agent in that market."

    Also, I will say, not all realtors you find on BiggerPockets are going to be investors. Some claim to be, but aren't. Unless they've done deals and have helped other investors before, I'd stay away from them. I should have 2 flips closing this week and I'll post it to my profile. Reach out to me if you have any other questions!

    Don't forget that real estate investing is like a game of hide and seek with 3rd grade math problems.

    Find the problems, associate a cost with that problem, factor it into your purchase price. 

    0Reply
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Andrew Yen

    The BRRRR method is a fairly advanced technique. I would recommend a house hack to get you started so you can learn the process and not go broke on the first deal.

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    0Reply
  • John Jones
    Realtor · Memphis, TN · Member since 2020 · 33 posts · 22 votes
    5y

    @Paige Hutchinson Have you considered other markets?

    0Reply
  • Paige Hutchinson
    Real Estate Broker · Gulf Shores, Orange Beach · Member since 2020 · 65 posts · 18 votes
    5y

    We are looking in New Orleans also just haven’t found anything that works yet. 

    0Reply
  • Samara HuntleyPro Member
    Investor · Charlotte, NC · Member since 2020 · 124 posts · 189 votes
    5y

    @Andrew Yen Hi. Congratulations on your goal of getting out of the rat race! Real estate is definitely the tool to achieving that goal.

    I suggest you get an investor savvy agent in your desired investment location that knows the BRRRR method like the back of their hand. This will enable them to be able to guide you through this process over and over again until you're officially out of the rat race.

    My local market of Gastonia NC is a great market to check out for BRRRR's. 75-100k purchase price, around 15k+ in rehab and we usually end up hitting the 1% rule!

    Also, just start analyzing deals. The more the better. I suggest using BPs calculators to learn how these deals work with ALL expenses calculated. Vacancy, capex, maintenance, taxes, insurance etc. The more educated you get on the subject the easier RE investing will become!

    Good luck, Andrew!

    1Reply
  • Antonio CuccinielloPro Member
    Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
    5y

    @Andrew Yen Great that you want to get started. I understand how you feel, you want to get out of the rat race. Same here. I personally do not recommend starting with the BRRRR strategy as your first property because of how complicated it can be to pull off, especially for beginner real estate investors.

    My recommendation is you learn either fixing and flipping or rentals first. Do one, then move to the BRRRR.

    732-402-6988
    0Reply
  • Ken Naim
    Investor · Lake Worth, FL · Member since 2016 · 233 posts · 140 votes
    5y

    @Andrew Yen Congratulations on getting started. Take the first step and look at properties. Then analyze if any of them work for you. If they proceed onto offers and if accepted work hard to get each duck aligned in turn, financing, rehab, leasing, management etc. Don't be afraid of mistakes, they will happen. just fix them as best you can and move on. Forgive yourself, it is part of the learning process. Don't worry about anything but your immediate next step for the time being.

    0Reply
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