I have become obsessed with the idea of owning real estate over the past couple of years. I have started a business within the last year to make some extra money, so I can begin investing. My company is beginning to come off the ground but I currently have to keep reinvesting in my business to keep it moving forward. I feel that I’m close to the point where I can start investing some of my profits into real estate.
I am looking more towards partnering in real estate deals, and am willing to do the foot work in the partnership with the right deal. I just don’t know exactly where to begin in this process. I have been looking into syndication, but I don’t have experience enough to do that yet.
Any advice or small success stories would help a lot! Thank You!
You can start with books like "The Hands-off Investor" by Brian Burke and also listen to podcasts like "The Real Estate Syndication Show" by Whitney Sewell. They can definitely add insight on investing with Syndications. The best way to get started in syndication is to mock up a deal as if you were going to present it to an investor. You don’t know what you don’t know, until you actually do it. Having something tangible or developed is the key. You can also start as an LP investor while learning the ropes. Best of luck on your RE investing journey!
@Cameron Dierking , you mention you are building a business, and that business, while taking all your capital at the moment, is growing. So what is it about real estate that you are looking for?
For one, real estate is not the only way to financial freedom. In fact, real estate is a business, very much like the one you are building. You are not going to make much money for many years, because all of your money is going to be reinvested in more assets. Once you have a lot of assets, you have bought yourself a full time job. Granted, it can be very high paying, but you have to work, and the bigger the portfolio, the more non-stop it is. UNTIL, you have grown your holdings to being a full on company, with trusted management, staff, etc.
If you are looking for partners, I would recommend networking with other local RE professionals. Meetups, the Networking page on BP, FB groups, conferences, etc. There are many others in your boat that will likely be happy to partner to start getting deals done.
I understand the work it takes with real estate, but it is the type of work I enjoy. I also understand that one must build a decent portfolio before it can become sustainably passive. This is my retirement plan.
@Cameron Dierking if you are good at something and it’s working out well then perhaps focus on that to keep growing, and invest in real estate only passively. Unless you have the capacity to manage your ongoing business and the new real estate business at the same time. You don’t want the ongoing business to suffer because you are putting more time in real estate, which may or may not work out as expected, because there will be a learning curve.
I invest in real estate only passively (for diversification), which means syndications. I don’t even see turnkey rentals as a passive activity - it will eat up my time for meager cash flow that I can live without.
My current business is near impossible to scale, and is meant only for a vehicle to get elsewhere. I will not enter any real estate deals that aren’t commercial. The cash flow will be more than my business makes easily, with much less time involved. (Mobile RV Repair)
@Cameron Dierking . You're certainly in the right place to learn more. Since you want to do CRE (great choice!), I recommend you link up with a mentor/coach who has training and a network of other students who you can partner with. There are many great ones in commercial multifamily (like Michael Blank); self-storage (Scott Meyers); and mobile home parks (Frank Rolfe). Good luck!
I have aspirations in opening several other businesses, such as an RV dealership, but it all ties in with real estate. McDonald’s is the worlds largest real estate investor, so I feel other types of business and real estate could be a great choice. I’ll learn more as I go though. I appreciate the comment.
I hear you. I used my knowledge in construction and extra side work to get into real estate. I love construction but my body will only go so far. I had to have a plan for when I got older.
If you are doing rv repair I would look at rv parks for sale and partner up with someone to buy it. You could run that out of the park.
@Cameron Dierking I've done the exact same thing as you to get started working in real estate investing. I started doing property preservation initially after the 2008 crash helping investors "turn" REO properties into flip properties. I cut my teeth by doing the "service" work meeting the right people and learning the business indirectly. Once I made enough "active" income then I started investing it into assets passively using the same skills and network I developed through Property Preservation. Word of advice, learn as much as you can from others who have done what you want to do. It is much more cost effective to learn from them than to do it all yourself. I personally started wholesaling houses initially to follow up my Property Preservation days to make more active income but the trick was that I had to keep working (thats the trap of active income is you have to keep going and doing it). I did that for a few years learning how to buy properties or at least flip paper in the wholesaling world. I also then learned how to do disposition and ran 12 billboards to sell properties rent to own which had both an upfront payment and monthly cash flow. Couple years later I sold all my 23 rentals and got into doing boutique senior living which now I own 5 homes 70 beds that average $5K each per month.
Keep going, work hard and listen more than you talk... ask the right questions and you’ll be successful. Only listen to those who have done what you want to do and can do it joyfully. Nothing admirable about working 80 hours per week and being on your 3-4th wife.
@Brandon Schwab Thank you much for that reply. Everyone has a different situation and opinion on what to do with their investments. I totally agree to only listening to those who have successfully done what I am trying to do.
I research consistently, and read all the time (audible). I plan to move forward and I’m not scared to execute once I’m able.
Welcome @Cameron Dierking . Some advice from me would be to surround yourself with the right people. Find people in your area who are doing what you want to do and find a way to bring them value. This will help to shorten your learning curve and get you doing deals faster.