Just a quick background on me; I have just graduated from college and will be moving to Des Moines to begin work and hopefully my real estate investment portfolio.
I have listened to countless BP podcasts, watched hundreds of BP YouTube videos, and read several real estate books. Although I feel that my knowledge on real estate investing is sufficient, I feel that I do not have enough resources to go ahead with my first property.
I am just wondering how people combatted this feeling. Was there someone that mentored you (which I would love to have) or did you just have to go ahead and go against what your mind was telling you.
Welcome to Real Estate Investing and welcome to Des Moines! I'd say you are diving into one of the best real estate markets in the country (but I may be just a little bit bias). You'll never learn enough to be comfortable without making the plunge. But it sounds like you've done your homework, which will give you a huge head start. I wish I had BP 15 years ago...
Mentors are amazing, but the best ones will come with actually being active in the market, not the ones you can search for online. I've worked with a ton of first time investors by househacking. It's an amazing way to jump in without getting too far out of your comfort zone. But there are countless strategies, you just have to find the one that's right for you. I typically spend a bunch of time reading, learning and talking to others, but I really learn when I dive in and figure out what works best for me. Your strategy will change over time. Let us know how we can help get you on the right track! BP is an amazing resource!
@Drake Moser Congrats on your graduation. For me personally, I just had to get over the fear of losing money by just biting the bullet and diving into my first deal. Did I make mistakes? Yes. But I learned along the way... Yes you can wait to find a mentor but to be honest no one is going to hold your hand through the entire process. Best wishes, hope you join some REI groups, network, etc. and find some great deals in Des Moines and surrounding areas.
Welcome to Real Estate Investing and welcome to Des Moines! I'd say you are diving into one of the best real estate markets in the country (but I may be just a little bit bias). You'll never learn enough to be comfortable without making the plunge. But it sounds like you've done your homework, which will give you a huge head start. I wish I had BP 15 years ago...
Mentors are amazing, but the best ones will come with actually being active in the market, not the ones you can search for online. I've worked with a ton of first time investors by househacking. It's an amazing way to jump in without getting too far out of your comfort zone. But there are countless strategies, you just have to find the one that's right for you. I typically spend a bunch of time reading, learning and talking to others, but I really learn when I dive in and figure out what works best for me. Your strategy will change over time. Let us know how we can help get you on the right track! BP is an amazing resource!
@Drake Moser why not start with house-hacking? It's such an easy (relative to say wholesaling/flipping/etc) way to get started and can do wonders for your financial position. I bought my first house-hack a month before I graduated college actually.
Personally, I met my mentor after having purchased two properties. I don't think he would've given me the time of day if I hadn't already taken action on my own. Successful investors have a lot of people asking them for advice and the majority of them don't ever do anything with it which (often) causes them to become a bit jaded when it comes to helping new investors.
@Drake Moser I switched from the stock market to real estate about six months ago. A couple of pieces of advice:
- Know your numbers. Have a good idea what you want to invest and what your return would look like. I always estimate on the low/less attractive end. Plan for random expenses, property taxes, and income tax.
- Research your market and neighborhoods. Network. Find a realtor you trust and a good contractor to communicate and work with.
- Walk through houses and call on properties you know you might not even buy. Any time I speak to a realtor or another investor, I try to learn something new.
- Some might disagree with this, but live cheap in your personal life, and divert the money to investments. I only use cash, no loans. I don't owe a bank a monthly payment or have to worry about covering certain monthly expenses. It takes a lot of stress out of the process.
- Odd and ends - check sink and shower water pressure, run hot water to make sure it stays hot, exhaust fan in bathroom, crawl space opened or completely closed off, title insurance when purchasing, have someone present when sellers are moving out so they don't take your appliances that were included in sale, what's the property worth 30 years down the road, annual taxes, know your utilities.
I have some spreadsheet analysis I can share with you if you'd like. Any other questions feel free to send me a message. Best of luck.