New to Real Estate; Rental Properties
Member since 2022 · 7 posts · 14 votes
New to Real Estate; Rental Properties
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y1. 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 of your personal 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. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.
6. 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.
The DIY Landlord Book4.7248 Reviews
6 Replies
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes4y
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 of your personal 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. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.6. 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.
The DIY Landlord Book4.7248 Reviews - Real Estate Broker · Columbus, OH · Member since 2021 · 203 posts · 247 votes4y
BOOKS, even if you do not like reading get your glasses on and start going. The BP books are phenomenal. My personal recommendations are:
1. Rich Dad Poor Dad off the rip of course.
2. Low and No Money
3. Richest man in Babylon (not BP)
4. Rental Property Investing
- 4yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Vidal Gonzales:
Hello Everyone,
I am here to learn about real estate and to join the bigger pockets community. I am interested in investing into rental properties. While I am in my early 20s and do not have much money, I am hoping to start somewhere. I currently live in Southern California which I understand is too expensive for me to even consider buying property in so I am looking into investing out of state. I am unsure of which state markets would be the best to get into, but I did some research and found that the Ohio market might be a good start. While I am still learning and trying to understand real estate I am open to any tips, tricks, and suggestions you may have for someone just starting out. Please feel free to reach out and connect with me!
I would recommend picking up cheap, cash flowing properties in the Midwest. I have been doing that in Columbus, Ohio since 2017
- New to Real Estate · Member since 2022 · 5 posts · 11 votes4y
Hi @Vidal Gonzales,
Just like yourself I am also interesting in investing in out of state deals. Specifically in the Columbus, OH area as I live in Maryland and prices here are way to astronomical to get any reasonable ROI.
The books that @Joe Miller recommended are some great reads. I also like House Fire by Alan Corey who was featured on the BP podcast a couple years ago.
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- Investor · Amelia, OH · Member since 2022 · 58 posts · 45 votes4y
Quote from @Joe Miller:
BOOKS, even if you do not like reading get your glasses on and start going. The BP books are phenomenal. My personal recommendations are:
1. Rich Dad Poor Dad off the rip of course.
2. Low and No Money
3. Richest man in Babylon (not BP)
4. Rental Property Investing
Buy at least 1 book. Even if you don't read it for a month, its a form of investing in yourself that will go a long way so that you have resources available when you decide its time.
- 4yTy AshBusiness MemberReal Estate Agent · Milwaukee, WI · Member since 2018 · 201 posts · 132 votes
Hi @Vidal Gonzales!
I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking.
I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a newer investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income now and in the future, keep your expenses low, and take the difference to invest into assets, real estate/business.
If you're heading the route of investing out of state, make sure to connect with an agent that's experienced with investing and can coach you through the numbers (but make sure you fact check them). Also, make sure to interview property managers so that you have at least two points of views on any deals that come across your desk.
Best of luck getting started! Here for you with any questions you have along the way!
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