Charlotte, NC · Member since 2018 · 19 posts · 5 votes
Im feeling so overwhelmed/anxious about getting started in REI. My biggest motivation is being able to leave my job and focus on REI full time. My biggest obstacle is not having a lot of savings. My biggest weakness is my anxiousness. Im anxious to do my first deal, ive changed my life style spending wise in order to payoff debts(not a lot) and im able to save more but its still a 2-3 year savings plan on my income in order to afford closing cost and down payments. Im ready to start NOW and really don't want to wait years to move forward.
Is patience the reality of it all or should I head another route?
P.S. Ive looked into wholesaling to start but I don’t think that would be a perfect fit for me with no real sales or marketing experience.
REI or any career in real estate often starts off slow until it starts compounding. Look for a mentor in your area or consider getting better at sales, marketing ( real estate sales person license and a quality brokerage could help you grow in this area ). There are some negatives to being licensed and a full time REI investor but IMO there is also a lot of upside.
Remember, there is no "get rich quick" there is only "get rich slow". It is going to take years, try reading lots of books to pass the time :) You may find a way to execute your plan faster if you keep learning!
While you are still working and have an income, get some business cards made. Hand them to every friend, family member, everybody you can think of. Let everyone know that you are looking to help people with their real estate issues. Help people when they call with their real estate questions.
Sometimes the answer for homeowner is to sell the property. Then you can help them out by making them an offer for their home. If it is in great shape, refer them to a realtor friend who would welcome the business. After some time, you will be the go to person when it comes to real estate. You will be amazed that people will start bringing deals to you because you helped their friend or family member last week or last year.
It has been said that when you help enough people get what they want, you will get what you want. Something like that. In other words, help others and in time, you will get to where you should be.
Find a mentor you can shadow and learn from maybe even help them in their business and earn some extra income to help you in your business. Never stop seeking knowledge of this business because lack of knowledge can really set you back. It doesn't take a lot of money to get into this business but it does take networking and building relationships to be successful.
@Brianna Williams Hi Brianna! Have you attended any MeetUps in the area yet? DFW has a massive amount of them in almost every niche of REI. You might as well learn as much as you can during this time and start building your list (people who may invest with you or partner with you at some point in the future)!
REI or any career in real estate often starts off slow until it starts compounding. Look for a mentor in your area or consider getting better at sales, marketing ( real estate sales person license and a quality brokerage could help you grow in this area ). There are some negatives to being licensed and a full time REI investor but IMO there is also a lot of upside.
I love your assessment of self and situation! I like how you analyzed your strengths, weaknesses, and financial situation. You are thinking things through appropriately.
If you do look to pursue a deal where you own an asset, I would highly suggest something low-dollar figure. Remember, its ok to fail, but the higher the dollar asset, the bigger financial hit you take if you fail. I'm not trying to scare you, but rather make you aware of the possibilities. A highly leveraged $200k house say, if mismanaged to the fullest, could totally bury you financially. (it could also bring you some good cash-flow!).
All that said, I would recommend maybe starting with mobile homes. Have you considered this? And guess what, in most states = no closing costs! You dont "close" on MHs; they are treated as personal property (unless affixed to land by permanent foundation). You can jump into the game here for under $8-10k (this will depend on your region of the country**).
Most investors start in the business as wholesalers and then move into fix and flips after they have done a few deals and met some more people that will help them as they take baby steps within their own comfort zone. Wholesaling done right still does require some investing of your own personal money. You have to spend money on marketing knowledge setting up a legit business etc etc... But don't allow the advice you are being given to create fear in you. The word F.E.A.R. means... FALSE EVIDENCE APPEARING REAL !!! The fee in this FALSE EVIDENCE. Investing is risk but on the other side of RISK is REWARD so as investors we invest in FACTS EVIDENCE AREA & RETURN. That's our F.E.A.R. YOUR ARE GOING TO BE AMAZING.
WELCOME TO THE GREATEST CAREER IN THE WORLD
SEEK AND YOU SHALL FIND
ASK AND IT SHALL BE GIVEN TO YOU.
YOU ARE ALREADY A SUCCESSFUL INVESTOR THE WORLD IS WAITING ON YOUR BUSINESS CARD.
Sales requires training so don't sell just TELL. Learn how to solve problems for people. Jim Rohm said "help enough people get what they want and you will get what you want" Learn to ask the right questions that people will tell you what they need then solve their problem. Every investor needs their next deal it is your job to find out what that deal is and go find it for them. Even wholesalers. Everybody on here either has a deal or is looking for a deal. Everybody else is just reading posts and watching HGTV
Definitely takes patience, most important to make sure that first deal is solid. I crept into my first rental by buying a new primary and renting my previous townhouse so I already knew the house inside and out and had a grasp on the capex items and limited my risk that way. Then I did this again a couple years later with a live-in flip on the next one all the while trying to aggressively pay down mortgages. There were 3 years in between those two steps for me personally. And then now that I have more experience and confidence I have purchased multi families every three or four months over the past couple years....there’s no right way for everyone, but everyone needs to find their way
Get your real estate license while you are building up your capital. Then you can work in the field and troll the MLS in your free time. You can maintain your primary job while you do this. It’s terrific experience- you can pair up with an agent etc.