How can I start my real estate journey?

Question

I want to start my real estate journey but I don’t have any experience but listening to bigger podcast has inspired to start somewhere. I want to fix and flip homes but the homes i am looking at are in other states  because wa is to pricey. How do I go about that or is this not the right way to go about it? (I work a 9-5 so I don’t have have the lucky of flying to other states and just looking at the property)

Kevin Sobilo · Answer

@Jorge Jorge, a few thoughts:

1. EVERYONE thinks they want to "fix & flip" because looks like FAST and EASY money. Don't you think if it was fast and easy everyone would do it and then it wouldn't bring you much return?!?

2. Obviously there is money to be made in fix & flips as well as many other strategies available to newer investors.

3. For someone starting out, I personally suggest doing a serious "SELF ASSESSMENT". The best way for you to get into real estate IMO depends largely on where you are in life right now as well as what you bring to the table in terms of knowledge, skills, experience, or even your availability.

4. If you have no relevant experience, I think you will find it hard for someone to even lend you the capital needed to take on a serious rehab. Most hard money lenders require the borrower to have real experience because they are lending in part on their ability to execute on the plan to rehab the property.

5. Have you considered more accessible strategies that you can do where you are located now? For example a "House Hack" where you buy a small multifamily and live in 1 unit while renting the others. You can also buy a property that needs modest improvement to maximize its value and rents as well.

6. If you have no relevant experience, perhaps work on that! Consider getting your real estate license. That's a solid way to get some extremely relevant knowledge and experience and it works well as a side hustle to help you build money to invest.

Jordan Ray · Answer

Welcome to BiggerPockets! It's great that you're getting started, and I actually think you're asking this question before making a costly mistake. If you've never done a flip before, I probably wouldn't recommend your first one be out of state. Flipping requires a lot of coordination, quick decision-making, and tight control over timelines and budgets, which is much harder when you're several states away. If you're interested in investing out of state, I'd lean more toward a BRRRR or long-term rental strategy where you can build a repeatable system instead of relying on a single exit. One market I'd recommend looking at is Memphis, where there are still opportunities to buy quality single-family rentals under $150K, and depending on the neighborhood and condition, many can still meet or exceed the 1% rule while also benefiting from appreciation over time if you buy in the right locations. One of the biggest advantages is that local hard money lenders can finance 100% of the purchase and 100% of the rehab, with rehab draws throughout the project so you don't have to front the construction costs yourself. Many investors are able to complete deals with around $10,000 out of pocket before refinancing into long-term financing. Before buying anything, spend time practicing by analyzing ARVs, rents, rehab costs, market trends, and learning the overall layout of the city you're investing in so you understand exactly what you're buying. Then build a strong boots-on-the-ground team consisting of an investor-friendly agent who also owns rentals, a solid property manager, a reliable general contractor, and the right hard money and DSCR lending contacts. Having that team in place is what gives out-of-state investors the confidence to buy without constantly getting on a plane. Feel free to reach out, talk soon!

James Wachob · Answer

Hey @Jorge Jorge! Welcome! It's great that you're taking the time to learn before jumping into your first deal. Fix-and-flips can be profitable, but they're also one of the more hands-on investment strategies, which can make them challenging for a first deal. Especially if you're investing out of state while working a full-time job.If you're set on flipping remotely, the most important part is building a trusted local team. That means an experienced investor-friendly agent, a reliable contractor, and someone who can keep an eye on the project. Without that team, it's much harder to manage rehabs from another state.If your goal is simply to get started in real estate, you might also consider a long-term rental as your first investment. It's often a more manageable way to learn the business while building equity and cash flow.I'm a real estate agent based in Memphis and work with out-of-state investors building rental portfolios. Many of our clients come from high-cost markets like Washington because they're looking for more affordable opportunities. Some eventually move into value-add and BRRRR projects after gaining experience with long-term rentals and establishing a trusted team.Keep learning and analyzing deals! The right opportunity will come. If you ever want to explore out-of-state investing or learn more about the Memphis market, I'd be happy to connect and help however I can.

Mohammed Rahman · Answer

Hey Jorge,

I think the first step is figuring out your strategy before picking a market. Out-of-state investing can definitely work, but I wouldn't start by just looking for cheap properties in another state. The numbers might look attractive, but the local market, contractors, timelines, and exit strategy all matter.

Since you're working a 9-5, I'd focus on building your team before jumping into a flip. Find an investor-friendly agent, lender, contractor, and maybe a property manager in the market you're considering. Having boots on the ground is going to be critical if you can't easily travel.

I'd also spend time learning how to analyze deals. A lot of first-time flippers underestimate holding costs, rehab surprises, and how much experience it takes to manage a renovation remotely.

I've found that a lot of growth in real estate comes from taking action and learning along the way, but you want to make sure you're taking calculated risks. Start networking, study your target markets, and maybe look into partnering with someone local on your first deal.

All the best! Feel free to reach out and connect with me - my DMs are always open!

Marvin Chapman · Answer

Jorge. Do not worry. You have options to start your real estate journey in a way that saves you time and money. The option of turnkey offers those benefits. Turnkey real estate allows you to own cash-flowing, out-of-state properties that are already fully renovated, tenant-occupied, and managed by professionals. As a result, you have ownership that is completely hands-off for a 9-5 worker.

On the other hand, you will have to learn a process and then execute the process at the same time if you are to do it yourself. This process would consist of managing contractors, permits, and budget overruns remotely. These require extensive management experience. Having to execute a steep learning curve is compounded by the fact that you lack the flexibility to fly out to inspect properties because of your present job.

If you compare the remote fix and flip and turnkey options, you will see these differences. Where the remote fix and flip require strong experience in construction and management, turnkey requires none because the turnkey has already done it for you. Where the remote fix and flip require a heavy time commitment in terms of phone calls and remote tracking, turnkey does not because your ownership is hands off and the turnkey company handles the time commitment. Where the risk of the loss of capital is great with the remote fix and flip, the risk of loss is low with turnkey because you have an asset already rented with existing cash flow. Where financing with a distressed property will be difficult with a remote fix and flip, a turnkey property, having been renovated or newly developed, will be eligible for conventional financing. Last, a remote fix and flip does not produce immediate revenue until the sale where the turnkey property produces monthly passive income from day one.

Turnkey will support your present 9-5 commitment because of these benefits. Turnkey gives you passive income from day one because a tenant is already in place. Turnkey takes away management worries because you have a turnkey property manager that handles day-to-day operations and any issues that pop up at an inconvenient hour during the day. With turnkey, you do not have to do any costly renovations because the turnkey company has already done the renovations. Last, you will find turnkey markets in the southeast such as Alabama, Tennessee, and north Georgia that are accessible in terms of price with strong returns.

I hope that this helps. Reach out to me if you have any questions or want to talk.

Mike Klarman · Answer

Well, we all have time to spend, we all don't have money. We hope we can convert time into money by learning a process, trade, profession, what have you.  So, for people who want to be a successful flipper, I urge them to spend some of their time in learning those three areas as deeply as they can.

Mike Klarman · Answer

This is a very common starting point for most.

First, I'd take stock of what capital you have.  If you don't have 75k at least.  More like 100k.  Then you shouldn't do it. Too risky.  There's so much you do not know.

Plus you want to do a credit check and make sure you are loan worthy.

Lots of people lose money on their first one.

Before you jump in, ask yourself...

1) How much do  know about the rehab process?  That's prices. Methods. Labor. Materials. Processes. Etc.

2) How much do I know about the market, specifically where this asset is located in the market?  Is there parking? How's the school district? Is it walkable neighborhood? What's the value of the comps within 1/4 mile?

3) Do I understand bridge loans and how they work, particularly the draws on the rehabs? Do you understand how the sliding scale of leverage and rate work? Do you understand how draws work and understand how they are the secret torpedo that can sink the ship?

An education in the three areas above is free and I suggest becoming an expert before you spend $1.

I'm so curious, what kinds of strategies are these podcasts recommending?

Aaron Zimmerman · Answer

Are there any opportunities to house hack in your market? That'd be the best way to get started imo, especially if you're in an expensive market!

How can I start my real estate journey?

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