Hi BP friends,
I'm beginning the real estate investing journey, and while I'm still in the research/learning phase of things (reading, REIA meetings, etc.), I already feel a bit of paralysis on what type of RE I should consider. I have a limited bucket of funds, but enough to purchase at least one decent SFR, but also considering Reg A type funds and other crowdsourcing opportunities. Would love to hear from some others on how they got started and anything else relevant for someone in my position. Thank you!
Hi @Rich Dooley ! Welcome to the BiggerPockets family! You came to the right place to learn all about real estate investing! Here are some recommendations for you:
Find and connect with other BP members that are in your area: http://www.biggerpockets.com/meet
Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
Read Beginner’s Guide: http://www.biggerpockets.com/real-estate-investing
Check out BP Podcasts: http://www.biggerpockets.com/renewsblog/category/podcast
@Rich Dooley I can definitely relate to that. I got started less than a year ago, but it took me a while to take the first step. Here's what I did to get out of analysis- paralysis ( but I'm not recommending you to do the same) : I stopped listening to podcasts, watching investment videos and solely focused on making offers that made sense. Eventually, one of them clicked and I got started. It probably won't be your perfect investment, but you won't know it unless you take action. Having said that, if you don't have a primary residence yet, you could look at a multi unit and get started with that.
Single families aren't a bad way to start, but if you're wanting to get into bigger units, there's nothing stopping you to go for the big one right away. Take help from your local REIA folks as far as running numbers goes. BP is always there to help.
@Rich Dooley : Welcome to the investment community! Like Mihir mentioned, I highly recommend you consider taking a leap into multifamily investing rather than purchasing an SFR. With every additional unit, you slightly reduce your tenant risk and find that valuations are better on larger assets. If you're uncomfortable going at it alone, find a local semi-pro who can partner with you on your first deal. You won't regret it.
Thanks for your responses - exactly what I was hoping for and expected from BP. Tyler, I agree totally on SFR vs. MF. I think I need to get more deeply involved in local networks and find a good deal I can be a part of. All the best,
@Rich Dooley Welcome to BP! When you're just starting out, learn all you can about whatever property type you're interested in. Many start out in the single-family home business. I did the same and transitioned in mobile homes. You may also want to attend your local real estate investment club. Find people there who are doing what you want to do. Offer to help them out in exchange for learning from them. It's important to connect with people whose personalities work wells with yours. Good luck!!
Thanks Alina and Rachel!
Rich there are deals to be made in this market but the good ones are very few and far between. Most are priced too high to provide adequate cash flow so don't compromise, keep looking and one will present itself. I agree that MF is the way to go especially rehab and repositioning. Take your time, build up your investment cash, and be ready when the opportunity strikes. This is a good time to be meeting with fellow investors, banks and whoever else might help you find that deal. Do your homework more thoroughly than ever and don't get taken in just because opportunities are few, and never, ever, ever, run out of cash! All the best.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you