Newb in Baltimore, MD - sponge mode

[Nate L.]

Hello All!

I'm currently in what I call sponge mode - I'm trying to soak up all the knowledge I can before making my first deal. I'm reading books, listening to podcasts and talking with people I know in the industry. A few internet searched have led me to the BP podcasts and eventually the forums.

I'm interested in buy and hold, the BRRR strategy seems right up my alley, however I'm not trying to limit myself to one option.

I can't wait to meet you all!

Nate

[Garrett M.]

Hi @Nate L.,

Just jump in! I don't mean to sound cavalier, but I think it is always the right time to invest in real estate. 

Personally, I wanted to invest for years before I finally got started. But I thought investing in real estate was mysterious and scary and that one needed resources, knowledge, connections and skills I didn't have access to. And that is where Bigger Pockets came in. I owe so much to the great folks on this site. Thanks @Joshua Dorkinfor providing such a great foundation.  

So here's the best advice I have. Disclaimer: I'm still a relative newbie myself.

First, continue in sponge mode. Learn as much as you can about your market, look for your advantages based on your unique skills, situation and market, and choose a strategy- What types of deals do you want to be a part of? Flips, buy and hold, BRRRR, syndications, wholesale deals?

If you will be investing in the "traditional" ways, your ability to buy an asset will depend on your available finances. Can you scrape together a down payment? Can you qualify for conventional bank financing? Do you have any advantages like being eligible for VA loans or FHA loans that only require 3.5% down on up to 4 units? I would also add using private money and hard money loans to this side of the column, even though they do require more experience, knowledge or both.

If you will be using "creative financing" that path seems to be less dependent on having cash available and more about how resourceful you are. Creative real estate strategies like wholesaling, seller financing, subject-to deals, lease options all require you to know your market and be good at finding and working with distressed/motivated sellers.

Listen to all of the BP podcasts, even the 100 AskBP podcasts that @Brandon Turner put together! Through listening to the interviews, you will learn which strategies are attractive to you, and you will focus your interests into achievable goals. Analyze a bunch of properties to see if they work financially until you can spot a potential winner as soon as you see the numbers.

Network with other investors in your market. If possible, find a mentor in your area for whom you can add value. Keep asking questions in the forums and keep learning. Hone your strategy and set goals for your investing. At the same time focus on getting your funding together and when the moment is right and you find the right deal- you'll be ready.