what would you do if you could start over.

Question

So my next big step is getting pre approved for a loan and buying my first property to rent. What should I look forward to in the next week  so based on what you have learned if youbdont mind me asking. Thank you

Brant Richardson · Answer

Getting started younger, you don't need that advice though.  I would concentrate on education right now.  You can take an online realtors course + exam + licensing fees for under $1000, great first step investment.  I would start presenting myself as a clean cut professional at an earlier age too.  No offense but people won't take you seriously if you present yourself like you do in your avatar.  I used to have hair halfway down my back and a Suicidal Tendencies base ball hat on most of the time, it didn't help me get any where.

Patrick C. · Answer

Chris and Jerry provide excellent advice. When I started there were no online sites to gather information and get educated. You have a huge advantage. 
	
	If I had to do it over again I would learn more about using leverage and getting all the numbers down (accounting) from the very start. I highly recommend these books:
	
	Retire Rich From Real Estate by Marc W. Andersen
	
	What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli (He's on BiggerPockets).
	
	Every Landlord's Tax Deduction Guide by Stephen Fishman.
	
	I don't think you need motivational books and seminars. They are a waste of time and valuable money in my opinion. Don't be fooled by the fast-talking gurus.
	
	You got your priorities right. Focus on the practical skills that will make you money. One last tip is investigate the hell out of your tenant applicants.

Paul Timmins · Answer

@Jose Vazquez

Welcome.

Check out the Start Here page http://www.biggerpockets.com/starthere

Check out the free Bigger Pockets Real Estate Guide http://www.biggerpockets.com/real-estate-investing

Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info.

Consider checking out HUD homes for small multi's owner occupied gets first crack.

Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

Good Luck

Paul

Patrick C. · Answer

Yeah, dress like me and Jerry here.

Steve Smith · Answer

not wasted my time our money on a coach should have used it for down payment on a rental

Michele Fischer · Answer

I would educate myself more on the target neighborhood/market.  We decided to focus on a 40 block low income area.  I would still probably stay in that area, but would have purchased more on the edges than in the middle of the neighborhood, and would have focused on the three bedroom sweet spot.  Four bedrooms don't come available often enough to have good market rent comps, two bedrooms are too plentiful, and one bedrooms are too labor intensive/low income.

Jerry W. · Answer

@Jose Vazquez , take the time to actually get educated about what you are doing.  Read the beginner topics they have in the Learn section above.  Spend hours online going over sites like Zillow, truilio, red fine, etc.  Know what the market prices really are.  Use BP to its full potential.  Put info on properties you are looking at on this site and let members evaluate them.  Do not let an agent say you have to buy it now it's a great deal.  We have other people looking at it, it won't last.  It is easy to manipulate someone new to real estate investing into buying the wrong property.  Take your time.  Maybe you will miss a great deal by being careful, but another deal will come along, they are not one in a lifetime deals.  When you get a rental property use the same rules in choosing tenants, be careful.  One bad tenant can cost you a lot.  Good Luck, wish I had started that young.

Chris Music · Answer

Jose,

Awesome that you are taking steps towards your first rental property! One thing I would point out is that your cash flow isn't as simple as rent minus mortgage. There are lots of other expenses that come along with a rental property and you want to account for them to make sure that the property will truly turn a profit. These expenses include: property insurance, taxes, repairs, property management (include even if you plan to manage yourself) vacancy, etc. One way to do a quick check is the 50% rule (great explanation at this link by Brandon Turner).

what would you do if you could start over.

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