Newbie from Tempe, AZ

Newbie from Tempe, AZ

Property Manager · Tempe, AZ · Member since 2015 · 26 posts · 6 votes

Hello, everyone!

My name is Josh Hill. I've actually been on BP for several months but haven't interacted much. I got introduced by my brother, who is in a similar position to me. I've mostly been reading up on BP articles, books, and listening to the podcasts. I love what I'm learning!

My goal (for now) is to make $100k/yr in passive income from rental properties, maybe using just my free time (10-15hrs/week).

Working against me: no capital, next to no available income, essentially no connections, no real relevant experience, little free time with my 50-55hr/week job (that pays little but I love it), and very little education. Working for me to overcome those obstacles: determination that will see me through hard times, a creative mind that will find a way when none presents itself, hard work and discipline enough to take what little education, capital, connections, skills, and experience I do have and make it work.

I'm fascinated by REI and believe I can be successful in this market given enough hard work and perseverance. I think I'll enjoy it enough to give me the motivation to face the challenge of succeeding.

I've done enough reading and listening to bring me to a point where I'm debating between working for next to nothing (or actually nothing) for some investor who can put me to work doing menial tasks in exchange for learning everything I can from him, or just going out there and trying my hand at wholesaling. Either way I plan to make my first real steps this coming summer (once my schedule opens up a bit). So I have the next 5 months of actively educating myself and making some final decisions into what strategy I'm going toward before I hope to take the plunge this summer.

Any direction, advice, or recommended reading is welcome!

Thanks!

Josh

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Dick RosenPro Member
Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
10y
Welcome to BP Joshua Hill ! I highly recommend that you get involved with AZREIA.org and because you are in Tempe there is a great group that meets in Mesa once a month that is extremely helpful. PM me if you are interested and I'll forward an invite.
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  • Investor · Bay Shore, NY · Member since 2014 · 1k+ posts · 688 votes
    10y

    @Joshua Hill

    Welcome to the vibrant BP community. Your time here will be well spent.

    Thanks for sharing your info which is sprinkled with challenges, but, not insurmountable.

    My suggestion would be for you to start with bird dogging  and/or wholesaling. Below, are links for your review on those topics.

    Frankly, I really like your honesty, acceptance of your current state of affairs and determination to succeed.

    https://www.biggerpockets.com/renewsblog/2015/01/31/ultimate-beginners-guide-real-estate-wholesaling-2/ (Ultimate beginners guide to wholesaling)

    https://www.biggerpockets.com/renewsblog/2014/10/09/getting-started-real-estate-wholesaler/ (BP Podcast 091 Wholesaling)

    https://www.biggerpockets.com/renewsblog/2013/10/31/wholesaling-podcast-mike-nelson/ (BP Podcast 042 - wholesaling)

    Now that you have made the move, below are some links that will help with the navigation of the site.

    https://www.biggerpockets.com/courses/a-beginners-introduction-to-real-estate-investing (video courses)

    https://www.biggerpockets.com/real-estate-investing (Ultimate beginner's guide to REI)

    Before your 1st purchase, please ensure you visit the below link for some tips.

    https://www.biggerpockets.com/renewsblog/2014/12/19/real-estate-investing-success-smart-tips/

    REI books suggested by BPers

    https://www.biggerpockets.com/renewsblog/2015/11/13/7-real-estate-books-beginner-investors/ (7 absolute must read books for beginner REIs)

    http://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/?utm_source=search&utm_medium=internal&utm_campaign=books (books recommended by BPers)

    Simply, bone up on the areas that you need to expand knowledge in such as, Forums, Marketplace, Learn, Network, Analyze and Resources.

    Continue to feast on the Podcasts, #askbp Podcasts, blogs and webinars

    Lastly, this site thrives on interactions and as such we encourage two way exchanges and look forward to educational, thought provoking ideas relevant to REI.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    10y

    Josh you're broke and you have time, so go to REIA's and see if you can't find a way to donate some of your time for free to learn this business.

    You need to find someone who has a lot of money and it's time to put you under their wing but you must have integrity and patience to learn how this local investor does his business

  • Property Manager · Tempe, AZ · Member since 2015 · 26 posts · 6 votes
    10y

    @Linval T. Thanks for the suggestions! I spent a good deal of time looking into much of the content you sent over. My focus is refining and I'm getting a real idea of what I need to learn before I can start and some actionable first steps for the weeks and months to come. 

    @Brian Gibbons I appreciate your advice, I know there's a REIA in Phoenix not far from where I live. I'll have to check it out and get connected to someone I can offer my time to. I'm looking forward to creating mutually beneficial relationships in this business, and I know REIAs are a great place to form them.

  • Investor · Mesa, AZ · Member since 2014 · 176 posts · 54 votes
    10y

    Hi Josh,

    As Linval mentioned I like the fact you know what you're current limitations are. Hell, I lost my job in the process of buying my first investment property. I followed through because I knew REI was what I wanted to do.

    I too would focus on wholesaling/ bird dogging. If you find something you could discount it to an investor who is willing to show you the ropes. When ready, I would use house hacking as your first method of obtaining your first rental. This method works best when you're young and don't have wife/kids.

    Good luck and don't hesitate to reach out,

    Casey

  • New York City, NY · Member since 2015 · 37 posts · 7 votes
    10y

    Hi Josh and welcome.

    i love Tempe and Arizona and my ex-girlfriend's father owns several rental properties in the Phoenix area which is how I got to know a bit about Arizona.

    Good luck with your goals. I too am starting with the goal of investing as little of my own money as possible to get started. 

  • Phoenix, AZ · Member since 2015 · 43 posts · 11 votes
    10y

    Welcome Josh! BP is a great place to get started as you can see. Great info, great people (like minded) and willing to help. 

    I'm in the same boat as you, and willing to learn and determined to make REI work me me and my family. Good luck and happy investing!

  • Dick RosenPro Member
    Property Manager · Gilbert, AZ · Member since 2009 · 1k+ posts · 451 votes
    10y
    Welcome to BP Joshua Hill ! I highly recommend that you get involved with AZREIA.org and because you are in Tempe there is a great group that meets in Mesa once a month that is extremely helpful. PM me if you are interested and I'll forward an invite.
  • Property Manager · Tempe, AZ · Member since 2015 · 26 posts · 6 votes
    10y

    Thanks for the replies everyone! 

    @Casey Miles I hope to use house hacking on my first property. I'm single now and hope to get my first property or so under my belt before I move into that stage of life, living for someone else, too!

    If anyone knows the difference between bird-dogging and wholesaling, let me know. I was sold on the idea of wholesaling, and bird-dogging seems to be just about the same thing, except with a stronger relationship with another investor/mentor. Maybe link to a place that can explain the differences? I'm not finding much.

  • Investor · Mesa, AZ · Member since 2014 · 176 posts · 54 votes
    10y

    Essentially, without getting too into the weeds, bird dogging is the initial step(s) within wholesaling. You find a potential deal and turn it over to a wholesaler that has the buyer's lists, etc. to execute the deal and in return you get small fee (much less than the total wholesaling fee). Some people consider bird dogging just driving around looking for and creating a list of potential sellers, you'd be paid much less per lead in this scenario. If you had solid leads that you setup and essentially negotiate and that actually come to fruition you can split the wholesaling fee with another wholesaler because you did most of the work and basically used their buyer's list only. You eventually establish your own buyer's list and deal flow and you're an official wholesaler, move to fix/flipping the property yourself, buy/hold some of those and bamm........ your sipping Mia Tias on the beach!

  • Property Manager · Tempe, AZ · Member since 2015 · 26 posts · 6 votes
    10y

    @Casey Miles your definition helps a lot, thanks! I feel the things I would avoiding on as a bird-dog vs a wholesaler are the very things I'm hoping to gain a solid knowledge and experience base in. 

  • Gilbert , AZ · Member since 2016 · 12 posts · 3 votes
    10y

    Hey @Joshua Hill just wanted to stop by and reach out I'm a Arizona native so I know the area fairly well. I just signed up with bp recently been educating myself non stop! Hmu if you need anything 

  • Savannah, GA · Member since 2016 · 86 posts · 11 votes
    10y

    I'm new, but hearing a lot about wholesaling so I think I'm going to look at this link as well. I joined BP @ beginning of the week with my mind set on flipping. I've since thought I might want to do turnkey too. I'm going to familiarize myself with some of different facets and move from there. I participated in the webinar tonight: How a Newbie Can Start Building Wealth Through Real Estate with Brandon Turner (which was Awesome!!) and I am sooo motivated, excited and ready to go look for deals now, of course, I need to read some more of the suggested material. Therefore, I'm going to spend the remainder of my week as well as the weekend doing that. Any suggestions as to how long before you should begin?

  • Real Estate Agent · Falls Church · Member since 2012 · 2k+ posts · 1k+ votes
    10y

    @Joshua Hill welcome to BP. The motivation you have is great. I think the best thing to do in this situation is to invest some time in yourself to improve your personal situation, while at the same time increasing your real estate IQ. Your first purchase will be a byproduct of those actions. A deal will always be around somewhere when you are ready.

  • Savannah, GA · Member since 2016 · 86 posts · 11 votes
    10y

    TU Brandon for that. That is very true. I want to be at my best and make a good deal.

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