I have money, how do I get started?

Question

Hi BP,

I have a good amount of money from an inheritance. I want to get started in REI, but I have zero experience. I have learned a lot in the last month. I was thinking of finding someone to partner on a BRRRR with. Any advice on how to go about this? I would like to invest locally.

Thank you guys!

Benjamin Aaker · Answer

Take the time to educate yourself about real estate investment first. Do a lot of reading and get involved with your real estate investors' association. Put that money somewhere safe while you learn. Start thinking about what type of property in which you want to invest. Many start with a single family house, but not everyone. Consider whether you are interested in moving into your new rental property or not. Determine what amount of money you can invest as a down payment. Start with something you can lose money in and won't mind looking at it as education. Build your network of real estate agent, banker, accountant, attorney, and insurer. Let us know how you progress and we can help with individual issues. Good luck!

John Warren · Answer

@Albert Velasquez  I would be cautious with this first nest egg you have been given. Look locally here and find rental properties that you can manage. From Bolingbrook, you have a lot of options. You can focus on single family homes or you can head towards the city or Aurora to find 2-4 unit properties pretty easily.

The thing with partnering on a BRRRR is that you have two risk factors. Number one is that you would be starting with a new partner, and number two is that a BRRRR has a bit more risk than a regular deal.

Funsho Adesanya · Answer

I'd recommend you put that money away into some index fund and get yourself educated in REI FIRST before buying any property, partnering up with anyone or doing anything related to real estate investing. You will make mistakes regardless as we all do but you'll need that education background/grounding to help you get back on your feet very quickly. Otherwise it could be a really tough experience if you don't know what you're doing. Good Luck!

Lumi Ispas · Answer

If I were you, I would put a plan together. You'll need a great team: a realtor that's an investor and has been in business for a long time, the same with a lender that does both residential & commercial lending, and an attorney that has experience with taxes and estate planning. What keeps most people from buying is the down payments. You already have the money. Now you need the team, a good strategy and then start buying.

Eliott Elias · Answer

Reach out to local investors and Realtors and tell them your situation. Be a sponge

Joe Villeneuve · Answer

Partnering at the start is a good idea, but be careful what terms you get as a partner.  One month of information isn't going to give you enough knowledge to get started.  You need to learn how to "use" that money...not "spend" it.  Spending it gets you only one use out of it.  Using it means no matter how many times you try to spend it, it keeps coming back with friends (CF and/or Profit) and you can use it all over again.  The BRRRR method is NOT an example of this.  The BRRRR method is not using your money over and over.  Every time you refi, you are buying money from the bank, not using your money again.  It it was you money you were using, you wouldn't be paying for it every time you refi.

I have money, how do I get started?

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