My family has been investing in commercial real estate for as long as I can remember with a huge amount of success. I’m now wanting to get into the business as well. However, my grandparents are the ones who started it all and my father already had a lot of resources at his finger tips when he began. So I’m not really sure how to start on my own journey. I work full time and I have the ability to invest $24000 by 2020. But having money to invest and not knowing what to do with it is scary. I’ve worked hrs to save and I want to be wise with my first real estate purchase. Where do I begin?
To echo the other already great answers, learning as much as you can will reduce that feeling of uncertainty you're feeling. There are so many facets to real estate investing. Find the avenues that catch your interest, and learn as much as you can about them. The BiggerPockets podcast taught me a lot when I was starting out. Reading Rich Dad Poor Dad really put my mind in the right place. Ask questions on the forum and don't be afraid to reach out to those who are finding success doing the things you want to do!
Multifamily investor · Boston, MA · Member since 2017 · 281 posts · 521 votes
7y
Hi Anna, welcome to BP! The first thing I'd advise you to do is to GET REAL ESTATE EDUCATION. Read books, listen to podcasts, read blogs, be active here or even get a mentor who will accelerate your progress. Scary? Yes it is, when you start. Picking a mentor can help you ease the fear and prevent you from making costly mistakes.
@Ellie Perlman fantastic idea! My father is actually a real estate agent and I’ve borrowed and studied his books. Ill have to ask him if he’d be willing to take the time to actively teach me, knowledge is the biggest asset!
There're many different strategies within real estate these days. As you continue educating yourself, you have to determine (1) whether you want to be active or passive investor, (2) depending on #1, pick a strategy within such niche. Once you pick such strategy, concentrate on it only without any deviation to excel in it.
To echo the other already great answers, learning as much as you can will reduce that feeling of uncertainty you're feeling. There are so many facets to real estate investing. Find the avenues that catch your interest, and learn as much as you can about them. The BiggerPockets podcast taught me a lot when I was starting out. Reading Rich Dad Poor Dad really put my mind in the right place. Ask questions on the forum and don't be afraid to reach out to those who are finding success doing the things you want to do!
Real Estate Broker · Bay Area · Member since 2018 · 1k+ posts · 3k+ votes
7y
Hi Anna,
Number 1 thing in real estate investing is to get your money right. Gotta have your personal finances at the right level and gotta have enough saved to actually buy something. Nothing else matters until this is achieved.
@Hannah Krebs thank you so much! You’re definitely right, the more you understand the more comfortable you’ll feel. Ill check out the podcast and book you recommended!
Rental Property Investor · Montgomery, AL · Member since 2009 · 141 posts · 156 votes
7y
@Anna Felka, you've already had some wonderful advice, but I would add two points. First, if you have family members that have been really successful, I would ask for their mentorship, they care more about you than anyone else and will feel honored to share the information they have spent a lifetime acquiring. I used to coach for Robert Kiyosaki, have conducted all kinds of bus tours for the various personalities from HGTV and owned a real estate brokerage and yet I have family members and friends who go and try it on their own and then call me after they get in a bind. That always hurts my feelings. Often they tell me they thought my time was too valuable and they didn't want to bother me. I would have felt honored to have been recognized for my abilities and would have helped them at no charge. So please talk to your family and tell them your interests. The second thing is that you need to become an expert at market cycles, at the stage we are in it's very important to invest in the right market at the right time. You'll need to decide whether you want to do single family or multifamily, or commercial. Probably single family is the smartest way to start because you can't make a real big mistake, but you might want to do your first deal partnering with one of your family members? They might contribute money to match yours and might bring valuable lending relationships. Hope that helps, Merry Christmas!