Very interested in real estate investing. How do I dive in?

10 Replies

Welcome to BP @Robert Troy

The best way is to jump in and learn as much as possible (books, podcasts, free market reports, webinars, youtube, etc). There are no dumb questions and luckily just about every one of them has been asked and answered before so I highly recommend searching the forums. Just soak up quality content and when a preferred strategy emerges - take action.

Good luck!

@Robert Troy get educated in this space. Then simply take action on what you know. You won't know everything before you get started. So don't go into the analysis paralysis phase. Network with other local investors in your area. You can find investors in your area by seeking out all of the local REIAs in your market. They can be found on meetup.com

I recommend you build a strong foundational understanding of real estate investing.

1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by @Brandon Turneror The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control your finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by @Scott Trench , or The Total Money Makeover by Dave Ramsey.

3. As you read these books, watch the biggerpockets podcasts. This will help clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.

4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. Biggerpockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up.

5. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.

You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

Robert,

Welcome.  Try answering the following questions for yourself:  

What? What type of real estate investing strategy will you initially pursue? Are you interested in buying and holding Single Family Rentals? Fixing & Flipping? House Hacking? Multifamily? Mobile Homes? Notes?  Read up on the various types of real estate investing and choose one strategy that you believe you can do well and you will enjoy.  Then dive deep into educating yourself on that one strategy.  You can expand and take on more later as you gain experience.  But start with one and go deep.

Where?  Where will you invest?  Where's your market? Local to your area or in other parts of the country?  Select a target market and get to know it well.

Who? Who do you know that can help you?  Build relationships with existing real estate investors who are doing what you want to do.  Its fine to follow the big names who have already made their multi-millions. But also connect with Investors who are still early in their investing career.  You can honestly learn a lot from people who are still very fresh in the early years of getting started, but are taking serious action. Partner and find a Coach or Mentor that can not only help you get going, but also keep you accountable to staying motivated and taking action.

How?  How will you take action every day? Read, study, get on BiggerPockets, listen to podcasts, talk to other Investors, talk to Agents, talk to Lenders, go to Meetups, attend Conferences, work on your personal finances and credit, etc, etc.  Do at least on thing each day that will move you closer to that first investment.

Hope it helps!