New to Real Estate · Joliet, IL · Member since 2021 · 89 posts · 135 votes
Hello All! I am new Real Estate Investing, and looking for some encouragement. I have been playing it safe all my life and now with so many options, I struggle making a decision on which route to go. No money saved, 700+ credit score, and people around me that do not understand my mindset. I need a community that will push me to Bigger Pockets no matter what.
Rental Property Investor · Lakewood, OH · Member since 2016 · 119 posts · 156 votes
5y
@Robert Williams
5 years ago I had -$800 in my bank account. I had a car to drive for free and a free place to stay (furnished basement of a family member). I now own 5 doors. I have an airbnb property that stacks cash.
Most people are stuck in the rat race "matrix" and don't even know it. Finding this site was the first step. Start grinding and u will get there
Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
5y
@Robert Williams you should consider reading or listening to two books: Set for Life by Scott Trench and How to Invest in Real Estate by Brandon Turner and Josh Dorkin. You should definitely consider starting by house hacking as articulated in Set for Life. The other book will help you settle on a strategy. Finding the right strategy takes a little work. Attend local REIA groups and network with other investors. Be patient. Continue to educate yourself. Your path will become clear in time. Good luck!
Househak. Live there one year or more, fix up the crappy unit that you live in while you wait, move into your van, rent out your former unit, repeat.
Yep, got to shock yourself out of mindless mediocrity. How badly do you want freedom?
All non-essentials need to translate into hours of your time like in Your Money or Your Life. The big things are housing, food and transportation. That van that can double as housing should not have a payment and should be fully stocked with pb&j and some basic handyman tools. Labor is expensive, especially today.
True you can't save your way to riches, but the mindset shift and cost savings dry powder will set you up for success👍
@Mitch Messer Hi, Mitch! I'm new to this platform so forgive me, but I don't see any contact information in your profile.
Aha, I'll bet you're using the BiggerPockets smartphone app, which honestly is pretty limited in functionality. I almost never use it!
If you instead login to the biggerpockets.comwebsite, you'll see my full profile in all its glory, along with my email and links to my presence on other social media platforms.
Rental Property Investor · Channahon, IL · Member since 2018 · 161 posts · 103 votes
5y
@Robert Williams Be steady, continue to read, SAVE, listen to podcasts on real estate. Since you are getting started my recommendation is the Newbie Bigger Pockets Real Estate Podcast. Live simply (for now) with the end goal in mind. Also check out the Joliet area Facebook. There is at least 1 meet up for the area monthly.
Rental Property Investor · Dallas, TX · Member since 2020 · 50 posts · 41 votes
5y
@Robert Williams I started out by renting out my personal home and buying a house for myself to live in. Then repeating until I had 15 Single Family Homes. Reinvested the cash flow and now five are completely paid off. Be sure to qualify your tenants. I use National Tenant Network for screening. I have had great experience with Section 8. Engage the services of a great property management company. They can help you get started.
Rental Property Investor · Moss Beach, CA · Member since 2018 · 3 posts · 4 votes
5y
@Robert Williams I’m in the same boat! Looking forward to hear what everyone has to say. Reading David’s book now about out of state investing and love it so far! You should pick up a copy too, that’s the best advice I can give sorry.
Rental Property Investor · Bronx, NY · Member since 2017 · 152 posts · 65 votes
5y
Great things are going to happen for you Robert. Just reading these replies from genuine ppl reminds me I'm in the right place also.
If i were you, here now, I'd have a pen & pad to note down every comment that peaks interest to you w/a follow-up creative summary. Everyone was spot-on.
Don't stop reading all things RE. Join a RE meetup in your area or through FB. On this BP site click the 'Network' tab, enter your area & begin sending requests to connect w/other like-minded students of RE. Take offers up for coffee or lunch.
Continue to save money w/o a doubt. There are different markets in the nation where prices are more affordable to your pockets.
You can trade your time for money. Meaning someone else that has the money but NO time can be interested in you finding the deal sort of like a JV together.
Rental Property Investor · Houston · Member since 2016 · 23 posts · 17 votes
5y
Congrats on getting started @Robert Williams! Anyone with a last name of Williams has luck on their side ;)
There are lots of great tips in this thread. In addition to the areas already mentioned: mentorship, education, investing capital, and mindset, I would put forth creating a detailed and actionable system of regular discipline.
It's overwhelming when looking down the barrel of a thousand strategies. For me when this happens I go back to the old adage "how do you eat an elephant? One bite at a time!"
A lifetime ago when I was a martial arts instructor, I realized that for myself and for my students those that were most successful always were those that focused on consistent discipline rather than heroics. They stretched in advance, they put in the reps, they were open to feedback, and they always kept a growth mindset.
I apply that methodology to my efforts in the form of lists. I create daily, weekly, and monthly "quests" in a list manager that repeat continuously, and I find it helpful in getting me out of my head and into the real world. When I first started this practice was critical to my success. Sure, maybe you're still saving up capital, but that doesn't stop you from analyzing five deals a day, going to one meet up a week, and reading one real estate book a month (or whatever makes sense for your situation).
Even if you ultimately use a different strategy, there's something that is motivating and encouraging about making steady progress by enforcing constraints on your activities. Think about where you want to be in 3, 6, 12 months from now. If you project yourself into the ideal version of you one year from today, looking back over the last year from that future time point what were the challenges you had to overcome? What was the work you had to put in?
If I were to open Zillow and sit down with you and point to a random property on a map in your area can you off the top of your head tell me what the COC would be? What the major economic centers in the area are? What the crime rate is? What the appreciation is over the last 12 months? If you can't no worries! I definitely couldn't do that when I started, but for my target areas I can ballpark any of those figures off the top of my head just because of the sheer volume of properties I've analyzed.
Create a roadmap and hold yourself accountable – let fate do the rest. Good Luck!
Real Estate Agent · Baltimore Maryland · Member since 2019 · 98 posts · 74 votes
5y
What you're feeling is NORMAL! Everyone goes through the same thing, even seasoned investors. Mindset is key: read, study, and practice analyzing properties. Also, I would suggest reaching out to local investors you meet here and see if you can shadow them or volunteer as an assistant so you can see what they do and how they do it. That way, you're providing value to them and they are providing value to you. Maybe choose a couple different investors who do different strategies (buy and hold, flips, wholesale, etc.). That way, you can get your feet wet while you're saving money and learning. GOOD LUCK!
Rental Property Investor · Sacramento, CA · Member since 2016 · 93 posts · 85 votes
5y
@Robert Williams Stay obsessively focused on the long term goal- this is the idea that you are trying to actualize long term. This will keep you in line when you lose focus and are wasting time on things that are not helping you move forward in that respect.
As a beginner I was tempted to jump on many different things(wholesaling, development etc) none of which helped me progress in achieving the long goal. The best thing you can do initially is avoid wasting time, prepare via research and make that first move as smooth as possible
There are many ways to start but I think one great option if residing in the US is saving a small amount of money and purchasing a multi family via primary residence FHA conventional loan. This comes at a high monthly cost due to the fact that you will be paying mortgage insurance, and a point cost upfront but you are risking much less in terms of cash.
The benefit of this is you are living on your property and can do much of the work without traveling much.
Try to separate rational from irrational fear and make calculated moves. Move and feel out the environment by participating in the arena you're interested in not as a bystander