What is the best route full time newbies?

Question

Hello, everyone.  I work in sales and am brand new to real estate.  I'm getting involved because I feel that this will be the best method of securing my retirement.

I'm working between 60 and 65 hours pre week.  Under these circumstances, what do you think would be the best route(s) for me to pursue as a new investor?

Xeniya McBroom · Answer

Hi Iniabasi, welcome to BP and congrats on taking the extra step and becoming a PRO Member!

I also work a full-time job and I am a part-time Realtor and investor. Since you don't have much time to invest, then it depends on how much money you have to invest. Turn Key rentals are good if you have the money for downpayment, otherwise I suggest partnering with a more experienced investor on a flip and generating more income that way. That is my strategy right now - alternating flips and rental deals. Fell free to connect if you would like to know more. Good luck!

Crystal Smith · Answer

• My recommendations below are essentially about getting an education.
• Find a local group that plays Robert Kiyosaki Cashflow game.  I recommend it because after playing a few times you'll hopefully start to understand some of the financial acumen necessary to establish your investment strategy.  Real Estate is one part of the game but what's more important is it's a safe environment to learn how to set up your financial statements for your business.  If you have a financial degree then it will seem like a piece of cake.  You should be able to establish a strategy for your investments after playing the game a few times.
• Start building your network- Join a couple of REI groups & establish some relationships w/ realtors, wholesalers, other investors, bankers, attorneys, GCs, handymen...
• Financing- There are various ways to finance a deal.  Cash, conventional, non-conventional, hard money, private money, syndication......   Learn how deals are underwritten.  Once you understand how a deal can be financed you can then decide which strategies will work based on your own finances & credit
• Analyze markets/properties- Learn how to analyze markets/ properties,.....  Short term vs long term returns, Flips vs buy & holds, residential vs commercial....
• Establish your team- Realtor, wholesalers, funding arm, legal, project mgr/GCs, handymen, investors (If you want to wholesale), property mgmt, accounting
• Then Find It/Fund It/Flip or Hold It/Repeat

Andrew Holmes · Answer

@Iniabasi N Imeh

If you work a lot and assuming you like what you do and are paid well for what you do (This is up to you if you feel happy and want to continue what you do).

1. Figure out what you want

2. Set a money goal (Assets accumulated or monthly cash flow goal)

3. Think through a strategy goal (Wholesale, Flip, Cashflow/Rental Properties)

For people who have full time jobs and are well paid at their full time job. I categorize them as busy professionals. Just my opinion the best strategy for them is rentals.

So if you goal is $ 8,000 per month in cash flow.

Then you need 10 paid off properties each month that cash flow $ 800 per month after all expenses.

So you need 4 years to build and

7 - 8 years after that to pay them all off from your monthly cash flow.

I am just basing on what is possible here in Chicago suburbs.

Just don't get distracted by 10 things that are possible. Most people don't reach their goal because it is so easy to get distracted with so many different things in real estate.

Pick one thing and if that strategy works well for you. If it is getting you progressively and steadily closer to your goal then stick with it.

Josue Vargas · Answer

Its all about your devotion and interest and not the time.  It's hard to work work 60-65 hours a day.  Still, there are people that made it trough.

I would say the first step is to be informed and have a plan to SAVE money, and if not, to pay debts.

While you build your cash to go to a bank or lender, try to built a network of people (real people) that can help you in the way.  Listen to podcast, they are free and a really good gamma of information, from novice to experts.

Also stick around in BP and learn about anything... but be careful of what information you take for granted.  Here are a lot of good experienced people, a lot of them, but not everyone is an expert... if you want to take advice from someone, seriously, look at their profile, it will tells you who are you talking to.

Personally, I'm a proud civil engineer with four properties, and in my case, I enjoy to write about foundations, structural, drainage, and soil issues and help the BP community on these specific issues.

Good luck to you!

Lori Valene · Answer

Hi Iniabasi,

Find someone that knows more than you and partner with them until you can quit your job.

Sometimes you can find local real estate investment clubs to join and meet a few people that can help you.

The only thing I would caution you about are sharks that prey on newbies! Just because someone is a speaker or popular doesn't mean they won't take advantage of your ignorance. Non compete agreements usually fix that. Just say'in.

Larry Fried · Answer

@Iniabasi N Imeh It can all depend on what your goals and capacities are.  I wrote an article about some passive choices in REI called that might give you some ideas

Three Key Routes for Passive Real Estate Investing

What is the best route full time newbies?

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