Prerequisites for getting started?

Question

Very interested yet very new. Was wondering where to start. Do I need licenses?, a minimum credit score?, how much should I save before I get started? Any help is much appreciated

Ian Reeves · Answer

Sean,  I would highly recommend reading the bigger pockets books (The book on rental property investing and book on investing with low and no money down) and spending some time getting yourself educated.  I spent about 4 months reading and doing research before jumping into my first deal, and I am very glad I did.  That being said, don't fall victim to the paralysis by analysis syndrome! At some point you have to learn the rest as you go.  To answer you questions (cop out answer - it depends).  You do not need any type of license to get started, but as you grow you will likely want to set up a business entity to protect yourself legally (LLC's seem to be most common and that is what I have).  Credits score completely depends on how you plan to finance, but if your credit is bad, its probably a good idea to take  a hard look at your finances and get them in order first. You do not necessarily need a lot of money to get started (if you read the book on investing with no and low money down you will find this out) however you need to have a sufficient reserve fund to cover the undexpected.  What happens if a furnace or AC unit goes out, what happens if it takes longer than expected to get a rental filled etc etc.  If you read those two books you will have a basic understanding of how to invest, how to find the deals, how to finance and the different tools investors use.  I am a huge fan of Audible because I can educate myself while I am driving, or at the gym or even while doing chores around the house.  If you are like me and have a demanding primary job this is a great way to squeeze more out of your day.  Good luck!

Jonna Weber · Answer

Welcome @Sean Kasperek.   Yes - utilitize the tremendous resources readily available here and you will have a solid foundation of knowledge in no time!  Like @Ian Reeves,  I utilize audible and podcasts every day in the car and on walks.  Just that action of replacing music with education will set you apart from the masses.