New member and new to real estate

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

1y

Books + podcast + real estate investor meetups = taking action. If you don't know what type of assets you would like, you have to think about your why for real estate. Is it to make more money on the side of your academy? If so, you have to see what capital you have to deploy and whether or not it makes sense. There are so many veterans who have carved nice paths in real estate investing all over the site and as guests on podcasts that you can learn from as well. Good luck. Just don't fall into the YouTube trap of planning your first deal with no money. Learn and save for a year before you do anything and meet as many other local investors as you can.

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Nathan GesnerBusiness Member

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Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes

1y

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 Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.

2. Prioritize your financial stability. Eliminate debt, establish a budget, and save. Remember, the notion of amassing wealth without investing is a dangerous myth perpetuated by self-proclaimed experts. A prudent investor doesn't seek quick riches through shortcuts. To thrive in real estate investing, you must maintain a firm grip on your finances. Explore my personal favorites, Set For Life by Scott Trench or The Total Money Makeover by Dave Ramsey, for invaluable financial insights.

3. As you read these books, watch the BiggerPockets podcasts. This will 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. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies who spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, Facebook, or a Google search. Birds of a feather flock together!

5. Now, you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum. A handy search bar in the upper right makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator 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, recognizing a good deal will be much easier 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.

6. Study the market. You can learn to do this independently or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR who works with investors and knows how to help you best.

7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. You could read 100 books and still need to learn more because certain things must be learned through trial and error. You don't need to know everything to get started; you 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 forgiving; the average person can still make money even with some big mistakes.

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Bill HamptonBusiness Member

Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 977 votes

1y

@Augusta Owens

Welcome to Bigger Pockets. Bigger Pockets is a great place for education and networking.

Join your local real estate investors association for additional education and networking.

Good luck.

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Shayne Hickey

Real Estate Agent · Mckinney, TX · Member since 2014 · 24 posts · 9 votes

1y

Hey @Augusta Owens Bigger Pockets has been so valuable to me in my own journey, so you are in the right place.

Ive been hosting an investor meetup the past 3 years and it's been a great place to collaborate with the like minded individuals and collaborate. 15-25 people show up each month and range from new investors to people,e who have been investing for decades.

would love to connect and get you some more information!

Good Luck.

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Augusta Owens
OP
Investor · Fort Worth, TX · Member since 2025 · 16 posts · 7 votes
1y
@Shayne Hickey I'm absolutely interested in the days and times of the meetup. I want to learn as much as I'm able to retain as quickly as possible.
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Preston DeanBusiness Member

Realtor · Fort Worth, TX · Member since 2021 · 779 posts · 368 votes

1y

Hi @Augusta Owens

First off thank you for your service! I am so grateful for the freedoms our vets fight for.

Secondly, I think by posting on here you are taking steps in the right direction! so kudos to you.

Regardless of when you plan to start your REI (Real Estate Investing) journey I would start building your team so you have them when you are ready, AND ASK THEM QUESTIONS

A wise man once said to build your team AKA Core 4. That wise man is the OG Brandon Turner from the BP podcast

WHO IS ON YOUR TEAM?

1. Your contractor

2. Your deal finder (agent/wholesaler)

3. Your property manager

4. Your Lender

My suggestion to find #2 & #4 would be to go to the top of this page and click on AGENTS & LENDERS. There you will be asked your criteria and then after answering a few questions you will be matched with 3-5 agents or loan officers in your area. My suggestion would be to select someone with the most forum posts or most reviews. That way you know they are active in the BP community!

[email protected]817-480-9452

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Augusta Owens
OP
Investor · Fort Worth, TX · Member since 2025 · 16 posts · 7 votes
1y
@Preston Dean thank you sir! I haven't been this excited about something since starting Jiu Jitsu classes 10 years ago. I'm grateful for the advice and I am reading 2 of Brandon Turner books currently. The tip about ensuring the agents and loan officers are active on here are both prudent and wise.
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Meghan Carson

Real Estate Agent · Memphis, TN · Member since 2024 · 250 posts · 71 votes

1y

Hi @Augusta Owens,

Welcome to BP!

Thank you for your service. The commitment you've made means so much and is so appreciated.

You have already made the first important step, connecting with investors here on Bigger Pockets. Now, it's time to explore your investment strategy.

We are local to Dallas and would love to see you come in and gather more information on Turn Key.

Best of luck to you!

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Kristin Flores-Brockman

Real Estate Agent · Fort Worth, TX · Member since 2021 · 142 posts · 59 votes

1y

Quote from @Augusta Owens:

Hello all,

I'm completely green when it comes to real estate, as in currently learning the terminology new. I never thought about real estate being something I would be remotely interested in, I'm more of a combat sports guy. I just recently started a jiu jitsu academy with a couple of friends, and although I was not in the day to day grind of the process in finding a building and building the space out, I did become fascinated with the process. This lead me into Youtube and construction/renovations, which eventually brought real estate and investing onto my radar. I recognize how much work is needed to succeed in this industry, and thanks to the US Army working hard has never been an issue for me. I guess my first question, which I imagine is similar for many who enters into this forum, is what is the best first steps for someone who is interested in real estate and investing, but doesn't have a great deal of capital to begin the journey?

Thank you all in advance for your feedback, wisdom, and tips.

Yay! Welcome to the community.

1. Network! - Get involved in local meetups

2. Learn the market and the industry

3. Build a team

Let's connect

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Greg KurznerBusiness Member

Real Estate Broker · Atlanta, GA · Member since 2016 · 200 posts · 75 votes

1y

Welcome, @Augusta Owens! Joining BiggerPockets is a fantastic first step – it’s where so many great real estate journeys start. I’ve been in this space for a long time, coaching and investing, and I love helping people get started. Educating yourself with BP is key and putting together a team is key. Let’s connect, and if there’s anything I can do to support you, just let me know!

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

1y

@Augusta Owens here's some copy & paste info you won't find in a book:)

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Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.

Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.

If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.

If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

Similarly, if you put several Class D tenants in a Class A 4-plex, what do you think will happen to the property?

So, when investing in areas they don’t really know, investors should research the different property Class submarkets.

Here’s our OPINION for the Metro Detroit market (use as a template for your target area!) that we’ve learned in our 24 years, managing almost 700 doors across the Metro Detroit area, including almost 100 S8 leases:

Class A Properties:
Cashflow vs Appreciation: Typically, 3-5 years for positive cashflow, but you get highest relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% the more recent norm.
Tenant Pool: Majority will have FICO scores of 680+ (roughly 5% probability of default), zero evictions in last 7 years.

Class B Properties:
Cashflow vs Appreciation: Typically, decent amount of relative rent & value appreciation.
Vacancy Est: Historically 10%, 5% should be applied only if proper research done to support.
Tenant Pool: Majority will have FICO scores of 620-680 (around 10% probability of default), some blemishes, but should have no evictions in last 5 years

Class C Properties:
Cashflow vs Appreciation: Typically, high cashflow and at the lower end of relative rent & value appreciation. Can try to reposition to Class B, but neighborhood may impede these efforts.
Vacancy Est: Historically 10%, but 15-20% should be used to also cover tenant nonpayment, eviction costs & damages.
Tenant Pool: majority will have FICO scores of 560-620 (approaching 22% probability of default), many blemishes, but should have no evictions in last 2 years. Verifying last 2 years of rental history very important! Also, focus on 2 years of job/income stability.

Class D Properties:
Cashflow vs Appreciation: Typically, all cashflow with little, maybe even negative, relative rent & value appreciation
Vacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.
Tenant Pool: majority will have FICO scores under 560 (almost 30% probability of default), little to no good tradelines, lots of collections & chargeoffs, recent evictions. Verifying last 2 years of rental history and income extremely important to find the “best of the worst”.

Make sure you understand the Class of properties you are looking at and the corresponding results to expect.

The City of Detroit has 183 Neighborhoods we’ve analyzed.

DM us if you’d like to discuss this logical approach in greater detail!

[email protected]248-209-6824

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New member and new to real estate

New member and new to real estate

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