Just starting out in real estate investing

14 Replies

So my wife and I have been reading, listening to podcasts and learning everything about real estate that we can. We are in medical field as a physical therapist and a nurse and are looking to build our portfolio to gain financial freedom. We are stuck where to start. We dont have any money down but do currently own home in Huntington beach, CA. We just paid our supplemental tax bill so that wiled our savings away quick. Shouod the first step be to find a property and run the numbers then speak to a lender or the reverse? Please any help will be awesome!

Thanks!!

That's awesome Sean! Definitely first step is to talk to a rockstar investor agent and lender in your area. With house hacking, you don't need a huge down payment and a lender will help you find the right loan option to accomplish that. They can also help you determine if keeping and renting your house in HB is best or not. Good luck Sean!

@Sean Starkey I would say the next step for y'all is to talk with lenders (maybe hard money) and find a contractor for rehab. Get your team lined up first. Once they are aware of your investment goals I would find a pipeline of deals to access and pick from. Finding rentals is not hard, but creating your investment strategy is. So having that narrowed down is immediate. Happy Investing!

Good Morning @Sean Starkey The very first thing you need is to identify what kind of market you like.  Do you like Primary markets (Like Chicago, IL, Phoenix, AZ or Los Angeles, CA) or do you like secondary markets (Like Toledo, OH, Greenville, SC or Kansas City, MO).  I tell all my investor clients that every market has its niche and brings something unique to the table.  Talk about Ohio for example, you will see that Columbus and Toledo tend to go neck and neck but each city brings something different to the table.  Columbus, OH has the appreciation and mass cash flow, whereas Toledo, OH has the big city, small town feel with cash flow opportunities.  Each city brings something different to the table and, as an investor, will need to figure out what satisfies your goal.

Once you have identified the type of market, its time to identify an area that you feel comfortable.  Being from out of town, you will need to identify your core 4 (Lender, Agent (Deal Finder), Property Manager and Contractor).  There are some top hitters in each market that can provide multiple areas as well but its important to do your research, network and get everyone on the same page.

Once you have identified your market and your core 4, you are ready to go!  If you want to discuss ideas or have questions, you are in a good area and hands of investors all over!

@Sean Starkey  
If you are looking to invest out of state, you should first narrow down where you are going to invest and find a real estate agent in that area that focuses on working with investors and, more specifically, out-of-state ones. If you are looking for recommendations on where to invest out of state, I would recommend looking at the Midwest. I live and invest here in Columbus OH. It's a nice hybrid of cash flow and appreciation. Once you have a market and an agent, reach out to a lender and get that process started and start analyzing deals the agent sends over to get a feel for the market and what you can afford in it. 

Originally posted by @Sean Starkey :

So my wife and I have been reading, listening to podcasts and learning everything about real estate that we can. We are in medical field as a physical therapist and a nurse and are looking to build our portfolio to gain financial freedom. We are stuck where to start. We dont have any money down but do currently own home in Huntington beach, CA. We just paid our supplemental tax bill so that wiled our savings away quick. Shouod the first step be to find a property and run the numbers then speak to a lender or the reverse? Please any help will be awesome!

Thanks!!

 You should speak with a lender first. What areas are you looking at? I started investing in Columbus, Ohio in 2017

@Sean Starkey - I think the first step is to figure out what your strategy (flip, wholesale, househack, etc.) is going to be and figure out how much money you might need for that specific strategy. Here in Chicago, there are a ton of 2-4 units properties so most people start out house hacking with an FHA 3.5% FHA loan.

If you have equity in your primary resident you could refinance or get a Home Equity Line of Credit.  If you have lived there 2 out of the last 5 years you could sell it and pay no capital gains and buy a small multifamily.

Start with your strategy, find a deal, and the money will come.

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