Newbie here who doesn't quite know the best path

Member since 2022 · 7 posts · 12 votes

Hey everyone! I'm Brad and I live in Chicago and hoping to get started with real estate and a path to financial freedom.

Currently, I work a sales job I don't love with a long commute which is my motivation for trying to find a new path with investing and real estate. My wife gets to travel for a living and I'd love to have the freedom to join her while working from anywhere.

My first goal is getting to leave the 9-5 and see what happens from there. We do have some savings but not as much as I'd like, that's for sure.

I'm currently interested in a lot of different areas and probably need to figure out the best place to start. Multifamily, out of state, mobile home parks, storage.

Would love any advice to help me find my way and can't wait to meet you all.

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Justin WindhamPro Member

Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes

@Brad Knight

Welcome to Bigger Pockets!

This is a great place to learn and network.

If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users

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Julio GonzalezPro Member
Specialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
4y
Welcome to BiggerPockets, Brad! You came to the right place to learn more about real estate investing!

561-253-6640
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Justin WindhamPro Member
Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
4y
@Brad Knight
Welcome to Bigger Pockets!

This is a great place to learn and network.

If you are looking to connect with other members near you, or want to learn from people in a specific area you’d like to invest in, or have a desire to find people interested in certain topics, you could use the search feature here: https://www.biggerpockets.com/search/users
2 Reply
Jaron WallingPro Member
Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
4y
@Brad Knight Your level of success/profit/cashflow/happiness is directly correlated to the amount of effort you put in. You will sacrifice something to find it. That said the amount of knowledge and encouragement in these forums is unreal. I've connected with people from Denver, Las Vegas, and NYC. Some OOS investors, some local. You can't find a bigger source of first hand experience and harsh truth which is really entertaining.

REI is not that complex. People either understand it or they don't. Some never really "invest" in properties. Instead they buy an expensive house and think it's an asset but really it's a liability. Make that crystal clear in your mind before buying. Have a long term game plan for the property. Find/buy/create a deal with up side and an exit strategy or don't buy it. Right now is a great time to learn, save money, and find your path. It's arguably the worst time to buy in history so you're not missing out on anything!
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Brad Knight
OP
Member since 2022 · 7 posts · 12 votes
4y
@Jaron Walling Thanks for that encouragement. I've definitely enjoyed looking through the forums for info but I'm going to try and start being more active to keep learning and growing. Definitely will need to take the plunge at some point but I'm going to try and keep learning until I can be a little more confident.
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Brad Knight
OP
Member since 2022 · 7 posts · 12 votes
4y
@Justin Windham Thanks for that suggestion! That's something I'll have to keep in mind. I definitely think it will be helpful for me to be able to get connected with a few people to help grow my understanding. Thanks Justin!
2 Reply
Jacob Wietholder
Rental Property Investor · Davenport, IA · Member since 2019 · 18 posts · 6 votes
4y
@Brad Knight Welcome to the BP network! This platform has truly taught me so much over the last several months via podcasts, forums, webinars, etc. It is truly amazing and you won't get this information and networking anywhere else. Good luck in your journey to financial freedom! I am not far from you in the Quad Cities region (Iowa/Illinois).
2 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
4y
It takes A LOT of real estate to be able to retire off of real estate. When you quit your W-2 banks look at you as higher risk and are less likely to give you a loan. If you're genuinely unhappy with your job that's a different story, to be frank your path to financial freedom doesn't start by quitting your job.
Take advantage of your sales job and practice like their sellers or your client. Get the hang of negotiation and building thick skin!
0 Reply
John Warren
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
4y
@Brad Knight I saw that you posted in a few places, but I feel like in this post I really got a sense of what your goals are. I would look at things to see where your biggest expenses are. Most likely, it is housing in your situation. This means if you can house hack and "live for free" then you would be freed up dramatically to pursue your dreams of traveling. There are so many strategies out there like flipping, wholesaling, mobile homes, subject 2, but at the end of the day a good rental property is a huge portfolio piece that helps you get towards your goals better than almost anything. Best of all, the loans people have access to for 1-4 units are very advantageous to helping you early on while you still have a job.
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Account Closed
Wholesaler · Euless, TX · Member since 2021 · 8 posts · 5 votes
4y
First starting out I cant recommend enough to read Rental Property Investing and Investing In Real Estate With No (and low) Money Down. These two books will give you a good overview of real estate investment strategies that are available to you, and you should be able to come up with a good plan that fits your unique situation. If you needs some more inspiration for ideas, Profit Like the Pros is a good look at deals and the strategies used to make them happen.

The most important part is once you figure out your plan, be consistent and keep pushing forward!

Good Luck!!
0 Reply
Dan M.
Real Estate Investor · Unadilla NY · Member since 2017 · 418 posts · 297 votes
4y
In my opinion John said it best, start with house hacking. That means buy a 2-4 family property and live in one of the units and hopefully live for free, or next to free. This gives you the sort of feel what its like to be a landlord. Why this is so advantageous is because now that rent/mortgage payment your paying currently is gone and you can really start to save. There are ways like BRRRR to scale quickly but make no mistake I do not care what people say, you need money, serious money, to get into the game if you want to retire. Its not something that happens in a year. I did it by saving and scrimping as much as I could and working a second job for a decade plowing all of my hard earned money into tangible assets.
Aside from house hacking, read. Educate yourself and figure out what you want to do and then go forward with that plan. The market has changed drastically from two years ago, and drastically from that 14 years ago. Things that may have worked in any of those times won't necessarily work today. Good luck with enough hard work , effort, and patience you can do it!
1 Reply
Funsho Adesanya
Rental Property Investor · Chicago, IL · Member since 2019 · 17 posts · 9 votes
4y
I agree with @Dan M. get educated and start off by house hacking. As much as you don't like your 9-5, I'd suggest you stick with it for a while as it'd be challenging getting approved for loans without a W-2 income or minimum of 2 yrs business experience with income. I felt the same way you do 2yrs ago when I started investing. I still have my W-2 but I also own 10 units now thanks to the relatively easy way to qualify for loans with my W-2 income. Best of luck to you!
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Forrest Williams
Real Estate Agent · Chicagoland · Member since 2018 · 314 posts · 199 votes
4y
Welcome to the forums! The best path is the one that works for you. For me, it was house hacking. I bought a foreclosed house, lived in it while I flipped it, and then sold it for a profit. Later I did it with a two flat which I kept to rent out. Now, it brings me income every month. Not enough to live off of, but with more it will be. You won't get rich enough to quit your day job with one deal.
If I were you, I'd try to buy a multifamily that's closer to your job that you can fix up. Let your tenant pay the mortgage. You can learn some home repair tricks on youtube, hire pros for other things you can't fix. Painting, drywall, some flooring, plumbing, and electrical will take you a long way.
Also, now is a great time to look for a new job. Lots of places are hiring. Even if it means taking a small pay cut, if you don't like your job, it may be worth it to find something you'll enjoy more or won't actively dislike. If you can get something salaried with a W-2, the banks will be much easier to deal with for getting loans.
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Collins Bonnema
Real Estate Agent · Chicago, IL · Member since 2022 · 11 posts · 4 votes
4y
@Brad Knight why not find a remote job to travel now, and start building slowly in real estate? Real Estate isn't a get rich quick scheme as people like to say on youtube, it is a long road to get where you want to go but it will eventually lead you to the financial freedom you are looking for. I've made a lot of mistakes in my real estate journey so if you need any help finding a deal let me know.
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Jonathan KlemmBusiness Member
Moderator
Contractor · Chicago, IL · Member since 2016 · 4k+ posts · 2k+ votes
4y
Hey @Brad Knight - Appreciate you sharing and jumping into the Chicago real estate game.
Seems like you definitely have some good advice above. I personally recommend investing close to home because I enjoy the variety of price points and the amount of old inventory in Chicago. Additionally, as you'll see if you stay active on BP or, just in and around some of the local meetup groups, there are a ton of great real estate investors that are more than willing to give you and to get started.
Totally agree you are on the right path to achieving financial freedom. Now just decide on a strategy, build a team, and start taking action as soon as possible.
Typically the easiest way to get started is by taking advantage of a low down payment loan on a small multifamily 2-4 units. Happy to connect and talk through some ideas.

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Michael K.
Investor · Chicago, IL · Member since 2018 · 352 posts · 176 votes
4y
Quote from @Brad Knight:

Hey everyone! I'm Brad and I live in Chicago and hoping to get started with real estate and a path to financial freedom.
Currently, I work a sales job I don't love with a long commute which is my motivation for trying to find a new path with investing and real estate. My wife gets to travel for a living and I'd love to have the freedom to join her while working from anywhere.

Hi Brad, welcome to the scene! I was thinking to ask, what's your current living situation? If I were you, I would start by focusing on ways to reduce my living expenses. Whether that comes from buying a multi-unit and living in one of the units, or rent hacking, or some other strategy, will depend on your situation. That will give you some freedom to pivot out of your 9-5. It's also entirely possible that with your wife's job and current savings you can already afford to buy something. Talk to some lenders and see what you can get approved for. Best of luck!
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Victor SoBusiness Member
Real Estate Agent · Chicago, IL · Member since 2017 · 324 posts · 193 votes
4y
Hey @Brad Knight , a lot of great suggestions above. I know you mentioned you don’t like your 9-5 but I’d be cautious about quitting since this will prevent you from getting loans under your name. If I were you, I’d keep the 9-5 (or find another tolerable 9-5) and househack. That’s basically what I did for the past 5 years. I househacked one property per year and acquired 7 units that way. I still plan on househacking one property per year while pursuing other real estate deals. If you want to discuss more, shoot me a DM
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