Finding Smarter friends

Finding Smarter friends

Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes

I've been putting off introducing myself to the BP community
because it seemed, well... scary. The thing you are most scared of is
the thing you should do to grow though, right?

I've also been told that when you are tackling a problem, you find a smarter friend to help you find a better way.

My name is Gabriel and I'm new to BP. I'd never thought of my self as a real-estate investor until recently. Like many people, Covid cost me my W-2 job. Unlike many people, I don't want a new one. ( I may have to get one, and accept that at least for a while.) I built a sales portfolio over that old career that paid me handsomely, made my bosses happy, and ultimately was taken away when Covid reduced my margins. I forgot that if you aren't working on your own plan, you are part of someone else's. They gave what I build to the senior salesman and cut the rest of us.

I don't know how to make a living investing in real-estate. I know how to learn, how to sell, and how to hustle, and I'm hoping to learn the rest here.

So... hello smarter friends! I'm learning and reading and listening to podcasts. I have one investment property that pays for itself, it's repairs/upgrades, and usually makes a small profit. I've learned a great deal from that property. (Both what to do and what NOT to do) I know I'm not ready to leap into BRRRRing through 6 properties this year, but I'm trying to learn what I need to learn to get there.

I'm here to learn, grow, and makes some friends along the way. 

Thanks for reading!

Gabriel

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Most Popular Reply

Real Estate Broker 路 Huntsville, AL 路 Member since 2019 路 1k+ posts 路 872 votes
5y

Your humility will take you far. Most people don't have the guts to say what you just said, but we all feel this way. Welcome to BP!

See this reply in the discussion

40 Replies

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  • Real Estate Agent 路 Houston, TX 路 Member since 2017 路 159 posts 路 161 votes
    5y

    Welcome to BP! Have you thought about being an agent? Your skill set and experience could transition well for you.

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Effram Barrett

    Hello and thanks!

    I have thought about being an agent. I was actually looking for a podcast on how to get started as one when I found BP. I still think it's good idea and am looking into it. Any suggestions for good info/podcasts to help with that?

    I've spoken with the agent that helped me aquire my current property. They were very helpful with giving me a realistic picture of the profession. Wonderful people to work with and learn from. They are in the unconscious competent stage though, and working almost completly through referrals.

    The only thing holding me back from committing to being an agent is 10 years of packaging industry knowledge and contacts. I'm trying to balance the advantages of learning more through being an agent against the significantly higher dollar value I can pull in packaging sales.

    My current idea on moving forward is to look for a job that takes advantage of my industry value while I take the classes required for an NY license. Either one can result in a stable income that'll further my goals and make me look better to lenders. Does that make sense?

  • Real Estate Agent 路 Houston, TX 路 Member since 2017 路 159 posts 路 161 votes
    5y

    There was a podcast I started listening to a few yrs ago for agents but I can't remember it. You can find a good one if you search though and check out various youtube channels. 

    To your other point, I understand where you're coming from. Another thing I could recommend is maybe working with a title company for W2 income. You can learn a lot about the industry at a great title company, but only you will know if you're better suited in the packaging industry. That experience will leverage you whether you are an agent, mortgage broker, or work at a title company. 

  • Real Estate Agent 路 Kalamazoo, MI 路 Member since 2021 路 10 posts 路 5 votes
    5y

    Hi Gabriel! I agree with Effram, working for a title company is a great way to learn the industry if you're looking for a w-2 situation. I'm an agent and here are some podcasts that have helped me specific to agents: Keeping It Real podcast hosted by D.J. Paris, The Kevin & Fred Show, and The Brian Buffini Show. Best of luck! :)

  • Real Estate Broker 路 Huntsville, AL 路 Member since 2019 路 1k+ posts 路 872 votes
    5y

    Your humility will take you far. Most people don't have the guts to say what you just said, but we all feel this way. Welcome to BP!

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Effram Barrett I hadn't thought of a title company job! I'll take a look and see where my skills might earn me a place there. Thank you! Side note, I used to spend a lot of time in Austin for work. Do you ever get out that way?

    @Account Closed Hello and thank you for the podcast suggestions. I will absolutely download a few and listen on my next run!  It's less that I am specifically looking for a W-2 and more that I know having a stable income looks good when one applies for financing regardless of other assets. I love the idea of learning more while getting paid!

    What kind of agent are you?

    @Stephen Brown Hello! Thanks man, its a tough place to stand but we all start somewhere right? Hows Toledo these days? I'm originally from Cleveland and used to hang out a little up in your area. 

  • Flipper/Rehabber 路 FL 路 Member since 2019 路 15 posts 路 2 votes
    5y

    Congrats on picking an industry with seemingly unlimited opportunities with unlimited potential! My suggestion would be to look through some of the BiggerPockets blog posts and webinars. The objective would be to zero on which part of the industry might best fit your skill set - there are lots of different options. 

    I found that I'm pretty handy, love to work with tools, and really enjoy having the fulfillment of seeing my work to completion. What works for me is fix-and-flipping houses. 

    Figure out what works for you and then pursue it with abandon! I'm sure with your attitude you will be very successful!!

  • Real Estate Investor 路 Sacramento, CA 路 Member since 2014 路 78 posts 路 41 votes
    5y

    Gabriel,

    Get yourself on the title on the right property. (Purchase, owner finance, lease option). Choose a path - Cashflow, Equity or Appreciation or any combination of the three.

    Be hyper focused on your cash flow numbers. BP is awesome. Connect with people and kick a$$.

    HTH,

    Tapan

  • Rental Property Investor 路 Knoxville, TN 路 Member since 2011 路 701 posts 路 531 votes
    5y

    Most agents are not very good at their job and don't have formal sales backgrounds. Your sales background and drive could catapult your agent career faster than you think and keeps you in this industry directly. I have that most of the information shared about jobs and careers online is geared towards the average person. High achievers are not average people so the challenges and limitations expressed by others in starting a career are not always accurate. David Greene here on BP very quickly became a top producing agent in a highly competitive market. In 10yrs I have met maybe a handful of truly good agents in my market and I work this business every single day. I actually wish I had become an agent when I first got started years ago. It is a very scalable business model and once the foundation is built can generate income into perpetuity with a proper team in place without being a time vampire. 

  • New to Real Estate 路 Manalapan, NJ 路 Member since 2020 路 11 posts 路 2 votes
    5y

    Hi Gabriel. I'm brand new to real estate investing, so I certainly don't qualify as one of the "smarter friends" yet, but I'm all for connecting with new people. I've been doing boatloads of reading on BP forums, listening to all three of their podcasts (the normal one, plus the rookie and money ones), and reading Brandon Turner's intro book. I also highly recommend trying out the "Racking up the Rentals" podcast by Jeff Stephens. One of his main things is seller financing, which may be right up your alley with your sales experience.

    Btw, I see your located in Peekskill. I grew up in Yorktown Heights!

  • Investor 路 San Diego, CA 路 Member since 2016 路 265 posts 路 305 votes
    5y

    @Gabriel Bures

    You have some great skills that will translate well into REI my friend. Sounds like you now have some time to dive deep and educate, network, study markets, look for deals.

    What are your constraints right now?

    Capital to invest?

    Deal flow?

    If you did will financially in your previous W2, maybe you can go the passive investing route (limited partner in syndications, private lending to other investors, etc.) and invest some of your W2 job proceeds while you learn the ropes to actively invest.

  • Flipper/Rehabber 路 Memphis, TN 路 Member since 2020 路 758 posts 路 285 votes
    5y

    Welcome to BP! All the best!

  • Investor 路 Richmond, VA 路 Member since 2016 路 1k+ posts 路 2k+ votes
    5y

    @Gabriel Bures,

    Welcome to BP!   Everyone starts as a little fish, with no experience  at the beginning, so just writing the post is a good start!   If you can sell, without a doubt become a real estate agent!  

      Think about what you want to do, where you start risk vs. reward, and find people doing that here!     It's much better than recreating the wheel, but  instead  learning from someone  (ex: find a mentor!)  and figuring out how you can even help them in the meantime!     If you wanna do C/D low income rentals, PM me.   

  • Jon KellyPro Member
    Investor 路 Bethlehem, PA 路 Member since 2016 路 929 posts 路 951 votes
    5y

    @Gabriel Bures Welcome and good for you for stepping out of your comfort zone! 

    There is a webinar hosted by David Greene tomorrow at 6pm related to agents and sales. You may find that helpful. 

    I would continue to take at least 1 action related to real estate per day. There are so many different directions your real estate journey can take and it can feel overwhelming. Simplify it and take 1 action each day. It can be as simple as writing a blog post, listening to a podcast, looking for a property in your market, analyzing 1 deal, etc. These actions will start to compound on one another and before you know it you'll be on the BiggerPockets Podcast sharing your story and helping others. 

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Tapan Trivedi

    For sure! Right now, cash flow is the goal. I'm just trying to figure out the most efficient path. I'm financially able to purchase a small property outright (150k or less) or a larger one using that amount as a down-payment.

    I own a house that rents on airbnb that cash flows a bit but live in an apartment I don't own in order to free up the house to rent. I realize now i should have worked that differently but I was in a different situation with different goals when I bought it.

    I'm thinking that a house hack to eliminate rent, build equity and start a small cash flow there would be a good start.

    What do you think?

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Christopher B.

    That's a really good point!

    Can I ask what qualities really set an agent apart for you? What really makes an agent a Rockstar in your eyes?

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Brandon Pimm

    Hello Brandon!

    Way cool! Do you ever make the trip back up here?

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Eric Schultz

    I'd say my major constraint right now is the knowledge needed to efficiently apply my tools/assets and in a risk profile I can accept.

    Put another way, I have a series of solutions on hand, I want to learn which combination of problems I can solve to make the most money.

    I have time. I can easily live out the year with my checking account and airbnb income.

    I have 150k I can pull as a line of credit from investments at 4% without touching my principle.

    I can sell. (More if I actually liquidate some stock)

    I have enough carpentry experience and tools to do small to medium jobs.

    What I lack is a clue what to do with them!

    I have the rough goal start looking for property in earnest after my second dose of vaccine in April.

    Until then I am devouring as much knowledge as I can.

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Aigo Pyles

    Thank you! Best to you as well!

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Linda S.

    Hello Linda!

    Thanks so much for the reply and info. I'm trying to figure out what combination of real-estate tactics and markets best suites the tools I have at hand!

    I would like to learn more about what you do and what lead you to it!

  • Peekskill, NY 路 Member since 2021 路 20 posts 路 28 votes
    5y

    @Jon Kelly

    Hello John,

    Thanks so much for taking the time to answer!

    I am definitely in learning mode right now. I run between 2 and 3 hours a day 5 days a week and it's BP podcasts all the way. Reading in the morning and hitting the webinars as well.

    Next step is analyzing 2 deals a day to get a handle on that!

  • Cincinnati, OH 路 Member since 2020 路 4k+ posts 路 3k+ votes
    5y

    @Gabriel Bures, I am sorry to hear about the layoff.  That is always painful, having been laid off a couple times over my career.

    Real estate investing, like basically all investing, is not "today I sell packaging, tomorrow I am a fully time real estate investor". Just like your sales roles, it took time to build your network and trust within that network to get people to buy from you.  A realtor is similar.  Unless you have an extensive list of friends local to your market that are all in the market to buy or sell property and use you, your early years will be very lean.

    With buying rentals, the same is said.  As you noted, most people cannot live off a one rental, or even 2, 3 or 4.  Super successful airbnb's might be able to support a comfortable life around 4-5, but from what I have heard/read/experienced, you are going to need a few hundred thousand dollars in order to acquire that many properties, which most people don't have laying around.  So therefore you do one, save the proceeds to buy the second, then third.

    Where I had every intention of leaving corporate America and being able to survive with my family financially was through flips.  The turn around and payoff is much faster, assuming they are profitable, that can quickly replace most mid-level w-2 earnings.  I.e. if you can do 3 houses a year and turn $20k profit per, that is 60k per year in earnings.  Does that make you wealthy? No, but for many that can be a very viable income, and typically 3 per year means you are only doing 1 at a time.  

    To earn even 20k per year as an agent, you will need to sell roughly $1.4mm per year, Assuming 3% commission to you, and your broker takes about half of your commission.  A lot of brokerages have caps on their take, so it is not 1:1, but you likely need to sell 3-4mm per year to make 60-80k/year.  And you are competing with every established agent and all the others getting their license each year.

    I am not discounting owning rentals, but if you have some savings, a flip is a faster way to start turning a profit to both live off of and reinvest to make more money in fairly short order.  I own rentals, flip houses, and passively invest.  One flip can create as much profit in a 4-6 months as my rental cash flow would in 5-6 years.

  • Real Estate Broker 路 Huntsville, AL 路 Member since 2019 路 1k+ posts 路 872 votes
    5y
    Originally posted by @Gabriel Bures:

    @Effram Barrett I hadn't thought of a title company job! I'll take a look and see where my skills might earn me a place there. Thank you! Side note, I used to spend a lot of time in Austin for work. Do you ever get out that way?

    @Account Closed Hello and thank you for the podcast suggestions. I will absolutely download a few and listen on my next run!  It's less that I am specifically looking for a W-2 and more that I know having a stable income looks good when one applies for financing regardless of other assets. I love the idea of learning more while getting paid!

    What kind of agent are you?

    @Stephen Brown Hello! Thanks man, its a tough place to stand but we all start somewhere right? Hows Toledo these days? I'm originally from Cleveland and used to hang out a little up in your area. 

    Toledo is on fire right now! However we still have plenty of deals for out of state investors. A lot of people trying to sell at top dollar :)

  • Rental Property Investor 路 Knoxville, TN 路 Member since 2020 路 51 posts 路 40 votes
    5y

    @Gabriel Bures

    Hey! 馃コ馃コ

    Just a few suggestions.

    If you don鈥檛 want to return to w2 job.

    I would...

    1. Get your real estate license.

    2. Join a brokerage

    3. Use commissions to live and fund your investing.

    4. I like the buying a property portion where you get paid to buy investments. Starts you off with safety net money out the gate.

    Hope this helps!

  • Realtor 路 Boston, MA 路 Member since 2019 路 91 posts 路 60 votes
    5y

    @Gabriel Bures

    Welcome Gabriel and kudos to you for delivering such a thoughtful vulnerable introduction

    You ll find this group focusd on sharing and growing together

    With what you intoned in your intro, it won't take you long at all to excel for your self and your new business

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