BRAND NEW to the world of real estate investing. Currently educating myself as much as possible before feeling ready to get out there and start networking and making deals. Two minutes after I finished “Investing in real estate with no and low money down”, my phone rings and it’s a local real estate broker returning my inquiry for distressed properties in my area that I submitted months ago (just to see what was out there). I now have a meeting tomorrow to discuss with an agent and a follow up with the broker Thursday.
What would you suggest to someone with no experience that I should be asking or communicating to a local real estate agent on helping me get started in the right direction and not wasting anyone’s time.
Good to see you're taking action, while you're soaking up knowledge.
Regarding your question, if you have an idea of what you're wanting to do in RE, it'll help determine what type of people you need to make connections with, then you can narrow down what sort of questions you need to be asking them.
If you want to get into doing fix & flips, BRRRR, wholesale, STR (short term rentals), notes, syndication, small multi-family, etc., then figure out the methods you'd need to deploy that'll allow you to find deals you can buy at a price point where you can make that profitable. (Realtors, wholesalers, in-bound/out-bound marketing, etc).
I know you were probably asking specifically about your meeting on Thursday, but you want an overall strategy to what you're trying to accomplish so you see the big picture. That'll help determine the course you want to take.
@Danielle Champagne welcome to BP! Good way to get started is read BP Beginner Guide.
What helps me is to just put it on paper. Write down the step by step process of what needs to happen between now and having your first rental rented out. Break it down into substeps, who do you need to help you (agents, contractors, property managers, etc), and when do you want it done by? Now you've got your plan in place and all you have to do is execute!
I think the very first thing is knowing your buying power.
Why? Because investing usually involved putting some kind of money into the game, yes, I get that many strategies require that you put something else like sweat equity, which is great. That said, it is always nice to have some money on hand, and this capital doesn't have to be your own money, it could someone else's money, say a family or friend.
Now, before you start taking other people's money make sure that you are well versed in the particular strategy you are looking to invest in.
Keep the momentum up!
Hey Danielle. Everyone has given great advice so far. Once you figure out what strategy you want to pursue, evaluate a bunch of deals. You can use sites like Zillow, Realtor, Trulia, Craigslist, Facebook marketplace, etc. to figure out market rents in your area and what houses are selling for. Use bigger pockets calculators to figure out what expenses to account for when evaluating properties as flips, buy and hold, etc. You can create your own spreadsheets. Start evaluating properties that are on the market with more than one exotic strategy- what are the numbers to flip it, to rent it? You'll start to see patterns of what works. You'll learn to recognize potential deals. That way you can be decisive with a realtor and know exactly what you're looking for.
@Danielle Champagne Belief system. Education. Massive action.
@Danielle Champagne I found a great deal and knew I had to make it work and it would be more risky to not buy!
1. Realize that everyone is afraid for a major investment, probably even the seasoned investors.
2. Have clarity on your criterion.
3. Keep taking small actions every day, may be sending a message, analyzing a property, or making a call.
Gradually your brain will start seeing yourself as an investor, but final action has to come from determination to take action. There are no shortcuts. Try not get a perfect deal, but one which meet your criterion.
Thank you so much for your advice! Makes sense and you’re right; I need to narrow down what exactly speaks to me.
Awesome! Thank you. I’ll definitely start there :)
I love this! Thank you so much for sharing. I’m going to try it
Thanks for the advice! I agree, I want to ensure I’m well educated and understand everything on the area of RE I wish to pursue.
Thanks so much for your advice! I like your idea of evaluating properties in order to gain knowledge and familiarity with my options. Great place to get started :)
Love it! I’m definitely at education now and excited to start taking massive action very soon
Makes sense! I’ll need to put in more work looking at available properties. Thanks for reaching out :)
@Danielle Champagne your same question has been asked many times on here. The typical advice people give isn't helpful in my opinion. People will tell you to educate yourself, analyze deals and make a bunch of offers. Usually this just results in someone delaying meaningful action. You can ultimately overthink things and fall victim to analysis paralysis.
When I got into rental properties, I read one book. I looked at three properties and I made one offer that got accepted.
People make this all far too complex. Either you are going to close on a deal or you are not. More information and more analysis isn't going to help you make that decision.
If you are serious, tell the agent you want to have a property under contract within 30 days. Then follow through on that.
Thanks for the advice! I like your ideas on smaller steps options to implement daily. You’re right about building belief!
I would tend to agree with Joe here . So many people think reading books listening to blogs going to seminars and calling agents to chat is taking action ! It’s not ! That is meaningless fluff that fakes you out . Go buy something and stop procrastinating. Do you want to be an old woman laying in bed saying wow what an amazing journey and thank God I bought 30 homes over the years .. or laying there saying geez I wish I would not have just sat around and reading books all
Do you have a pre-approval letter from a lendor? Knowing your money is lined up makes taking action much easier.
Ask them if they have any investing experience such as flips or buy and hold. Test there knowledge of the area to make sure they know enough about it.
Well my journey started on accident twice in a row. First house we put renters in our home we lived in because wife wanted to stay home with baby #2 and we couldn't comfortably afford the mortgage on a single salary. 3 years later that initial $1800 FHA down payment we made turned into $87k when we sold the home.
On our second home I wanted to sell but I wouldn’t take less than a grand slam. It was a slow market and we had already bought our next personal residence so paying two mortgages wasn’t fun. We brainstormed and thought we could put it on Airbnb for about a month and show the house between guests. We had no idea what we were doing and Airbnb was still pretty new so we didn’t know what it would turn into. We were instantly booked for two months straight with maybe a day or two not booked. Our real estate agent wasn’t too stoked when we told her we were probably not selling.
That started our investing journey and our mild obsession with short term rentals and a few LTR’s. It’s also fueled our residential construction hobby, and now working on opening an events center.
My advice is commit to getting the best you can and soon. Everything doesn’t always turn out great but the killer of any amazing real estate life is analysis paralysis. Education is great but sometimes we make ourselves lifelong students and look back and have every degree known to man but no real fruit to show for it.
Go for it, I believe in you!
@Danielle Champagne thinking but not overthinking it!
@Danielle Champagne Welcome to the community! Excited to see you are ready to jump in.
Your meeting probably already happened by the time I am writing this. However, I want to share some thoughts on getting started.
Before you get started, know why you want to get into real estate investing? Are you interested in cash flow or appreciation? Do you need immediate cash flow or can it wait? What is your appetite for rehab? This is going to be your guide throughout your roller coaster journey and will keep you looking forward through the good and bad days. After you know your why, work backwards to establish short-term and long-term goals to help you accomplish your why.
Understand what to you constitutes a great deal. This is typically a personal decision and can include specific returns you want to see from a deal. This will also help you stay focused and to not give in to a make a bad deal work.
One of the most important skills of an investor is deal analysis. You will want to practice analyzing deals everyday, even if you don't plan to buy yet. This skill is invaluable and a perishable skill.
You'll want to share your vision and goals including what types of properties you are looking for with the realtor. This will help them see what you want and look for those properties that meet your criteria.
Continue educating yourself everyday as there is too much information to learn in a short amount of time. Know that mistakes will be made, but the great thing about real estate is that over time and if purchased right, many mistakes can be mitigated or overcome. Don't be afraid to make the leap. Analysis paralysis can and does stop many from moving forward. Some of the best learning comes from jumping in and figuring it out.