Derby, KS · Member since 2016 · 32 posts · 6 votes
Hi everyone,
I've been throwing the idea of real estate investing around for about 6 months or so. The last couple of weeks I decided that I wanted to get serious about it.
I've been doing as much learning as I can, and so far BiggerPockets has been a tremendous help.
My goal (hopefully more short term than long term, but I know sometimes things take time), is to make enough residual income that I can quit my full time job and work on REI full time.
I am looking at SFH and MFH for my investment portfolio, and some day working up to commercial.
I've got around $15k-$20k to throw towards my first project. I'm hoping to find a property that I can use the BRRRR method to continue on different properties.
We have all been in that state of just thinking about real estate investing, its great to see you putting action towards it!
Education is key to your success!
Have you filled your negative time with podcasts or audio books? (Work commutes, cooking breakfast, during exercise?)
Books: BP has some great stuff! @J Scott put out two books that will help you estimate/perform rehab costs in an efficient way. If you plan to do a BRRRR then these books will help you with your scope of work. (Something you can show your hard money lender)
BP Meet Ups! By far the best thing I ever did for my investing career! Check out your local one and go to every meeting, so much fun and you learn tons!
Choose a market to invest in and set up your Zillow app to send you everything that comes up daily. Run numbers through the BP calculator so you can learn/become proficient. See what rentals are going for, in what areas, and with what amenities. (If renting is your exit strategy for BRRRR)
Connect:
Start building your team now. That way when a house comes up, and it will, you will be ready to lock it down. Some people will tell you a different order but use your best judgement to create the path that makes sense for your investing.
Start with lending. Call around for a money partner, most use HM because in my opinion its easier to get than private lenders. Unless you have the bank of Mom? Ha. (I used RCN for my loan this year, they helped me out and waived the number of investments needed BECAUSE I did what you are about to do. Study your butt off, know your investments, sound intelligent, and hand them the BP spreadsheet:)
Almost at the same time, find a RE agent that will help you find deals.
Contractors, unless you are doing the repairs yourself? Also build up your contacts on electricians, flooring, carpet, windows, roofs, pool removal/repairs, lawn care, etc. (Even if its just a quick excel sheet from a google search, it just saves you time during the rehab therefore cutting down your holding costs =$$)
Attorney for the closing.
I'm sure other BP members can chip in to mention what I forgot:)
Experience will be your best teacher Nick! Keep up the good work!
I am definitely soaking up as much info as I can. I am setting aside several hours on my days off as well.
I'm learning a ton, and so far it's been pretty fun!
I like the outline you gave above. A lot of it I am already doing, but I am a firm believer in visually seeing things, that repetition can help make us successful.
I actually have a word document with a simplified goal for myself. "Create enough residual income to quit my job and do real estate full time".
I open this document and read it everytime before I start in on the harder learning stuff (things past just listening to podcast for example). That way, if/when I hit an obstacle, there is no question why I am doing what I am doing, and I know why I need to push through.
I imagine most of the larger portfolio carriers do some kind of goal setting too!