When have I learned enough to start investing?

Question

When have I learned enough or read enough books to start investing? I feel like I need to learn so much before I can get into the real world and close on a deal. I know I can always learn more but I keep saying to myself that I need to be more knowledgable before I can take action.

Andrew Powers · Answer

A planning suggestion...

-Understand what your goals are and set target dates to achieve them. Be lofty yet realistic with your goals, theres a balance in there that's unique to each person. Then reverse engineer your goals down to small actions you can do every day to get there.

-Take steps that would get someone closer to closing on a house. Reverse engineer: closing a deal requires financing, real estate agent, location, property,  etc. Lay out these milestones in a rough timeline starting from the end (closing date). This will make it more clear what steps you need to take.. if it seems too short a timeline, no problem, adjust it to make it work for you. When you go along, things always don't go as planned or you didn't anticipate something, so adjust.

An action suggestion...

-like others have said, you'll figure things out, especially after buying your first property. This is of course true, but also don't take this advice as an excuse to not analyze a deal or make a rash decision.

Emily Salwen · Answer

Hi Raylene,

Thank you for your support! I am on the look out for my first rental property!

Damaso Bautista · Answer

@Emily Salwen

For me the most important factor to your question is about what type of personality do you have.  If you are a risk taker who can make decisions on the fly with basic information, then the learning curve isn't that great.

On the other hand if you are a planner who makes a plan and then a plan for the plan and then another plan just for good measure.  That type of personality seems to take a while in the learning phase.

It is different for each person.

Another factor that tends to keep new investors in the learning phase is risk factor.  How much money are they willing to risk on something that is not a sure thing.  There are many examples of how people have invested in real estate and it turned out different then they thought.

For me the investor that does really well really fast is the one who is a risk taker that knows how to mitigate risk to the point that personal financial ruin is not a factor.

Figure out where you stand and you will be on your way to investing in real estate.

Good luck!!

Chace Fraser · Answer

@Emily Salwen I spent YEARS studying and networking before I finally pulled the trigger. I learned more in the first 2 weeks of owning than I did in the years leading up to it.

Real world experience is the best teacher.

That being said, getting your mindset right, setting goals, and creating a strategy are essential first steps to investing in real estate. It's also crucial to surround yourself with the right people... there are many people that you will need to surround yourself with. To ensure success you will definitely want to associate with like-minded people, people with experience and who are already doing what it is you want to do, and people who inspire you… not naysayers, negative people, nor critics. BP is a great place to find these people, both virtually and in real life. You can find local meetups in your area by going to Network>Events up in the menu bar. I’ve found that people on BP are incredibly friendly and willing to help.

Emily Salwen · Answer

Yes, I would like to house hack and invest in rental properties in stable areas.

Raylene Luckett Froman · Answer

Emily, we all feel that way at times.  But what comes to mind is the quote - Start before you're ready.  Being a person of action is a good thing.  Keep learning.  Those that succeed learn something new very day.  This is a dynamic world we live in, things are constantly changing.  Start simple, do the math, find a mentor - someone that does what you want to do.  My favorite book is the Millionaire Real Estate Investor.  Good Luck, I am pulling for you to be a success.

Shannon S. · Answer

@Emily Salwen This is a great question and the fact that you are asking it means you are already doing the right thing. I had this same question before I jumped in to investing in 2015.   I think the first step to being ready is to figure out what area of REI is most interesting to you...do you want to invest in rentals, flip houses, wholesale, short term rentals, etc.  This can be a tough decision for some, but for others it's clear and easy.  There are different skill sets for each area, as well as differing levels of financial exposure, time investment, and business skills.  Have you decided on a path?

Arsen Atanasovski · Answer

@Emily Salwen

You’ll know everything once you close on your first deal! Go out there and get that deal! I’ve been doing this for over 10 years and learn things everyday. You’ll never be a professional, the podcasts are a great way to intake information but if you ever hear what they say they always say they learn new things. So if Brandon Turner is still learning trust me your learning as well! 10 years ago I was searching got properties that I can buy in cash $10,$20,$30k, today you can’t even find a vacant lot for $50k but interest rates were 8% and today it’s 2/3%, so my way of investing has changed with learning, you will always learn in any field your in. Doctor, Engineering, lawyers you’ll always be training for something new.

My grandfather once said, “son your born dum and you will eventually die dum” I never knew what he meant until we talked about him with my dad and my dad finally told me what he meant. My grandfather never had a driver license he was from Europe, he seen his son (my dad) drive and grand children drive but he couldn’t it did not mean he didn’t know how he just did not know how to read and take the test. My father then went on about technology how I am a lot more knowledgeable with technology then he was. So long story short you’ll always be learning and in the end new things/ideas will emerge and you will not know the until you learn them. But your best advice or experience is to go out there and close on a deal!

Taylor L. · Answer

A question many of us have asked ourselves. You'll learn more from experience than you ever could through books, podcasts, videos, or anything else. There will always be unknown unknowns. The question really is if you're taking "I don't know enough" as an excuse to avoid the unknown, or if you truly aren't prepared.

When have I learned enough to start investing?

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