Investor · Burien, WA · Member since 2017 · 6 posts · 2 votes
My name is Isaac and I am currently a junior at Marquette University, living in Seattle. This is actually my second introduction on the platform and simultaneously an honesty post:
I first became fascinated with real estate investing last year as a sophomore after hearing about the "wonders" of wholesaling from both an old friend a couple of internet gurus...and fell for it. I told myself I was seeking to ease into the industry when I tried to start my own wholesaling gig last summer, when I was really just chasing money.
Of course, I got burned out from trying to chase hundreds of leads per week because I was not truly passionate or aware of what I needed to do to reach success. I closed no business and learned much less from the experience than I thought I would.
Now, a year has passed and I have adopted an entirely new approach to my mentality about this entire industry. The main takeaway I have gained after reflecting on last summer is that 1) chasing money alone will not work in this business, and 2) that it cannot be done alone, instantly just like that, just after reading a few books or taking an online course.
I am ready to revamp my self-education in this field, learning, reading, and seeking advice from real professionals who have wisdom to offer. I am not focused on money at all as of right now or immediately trying to start up a business. I am focused on learning as much as possible about rental property buy-and-hold investing before I graduate next May so that I can come out swinging and hopefully make my first investment within the next two years aside from my corporate career.
Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
8y
@Isaac Feil Yeah...this business, especially wholesaling is a little more difficult than advertised. If you are truly looking for advice, here's some that took me a long time to swallow: you need money to make money. You don't need a massive amount, but do not be fooled, it takes $$$ to make $$$$$$. Only the broke or stupid believe you can make money from nothing (these days at least). So admit to yourself you're going to have to save, save and save...and the rewards will not come for years. It's a marathon, not a sprint. It's also not fun sacrificing now for a potentially better future.
Also, you should probably consider doing something that isn't in the books, the presentations or touted by the gurus, for when they do, it's over. Take wholesaling for example...no one heard of it during it's most profitable years after the credit crisis. Then, by about 2013 - 2014 you start seeing a few posts about it, by 2015 it's everywhere and by 2016 everyone and their mother is doing it. Now the market is saturated. Same goes with the fix n flip business. So i think it would behoove you to try to find the next "thing," whatever that might be.
Last but not least, recognize that there's nothing wrong with a "good" investment. Chasing after the "best" investment costs too much in the long run.
lakewood, NJ · Member since 2017 · 282 posts · 156 votes
8y
@Isaac Feil- I commend you for doing that self-reflection and learning what you did from your experience. Not enough young people (like you and me) reflect on anything these days :)
I would suggest reaching out and connecting with local, experienced investors that are doing what you are. If you can give of your time to help them with something, they might be able to teach you some things about your market, etc.
The best way to find them is here on BP or at meetups near you. Check out the events on this website or on meetup.com to see where they are. Don't be shy to talk to people when you go and you might find what you are looking for!
Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
8y
@Isaac Feil Yeah...this business, especially wholesaling is a little more difficult than advertised. If you are truly looking for advice, here's some that took me a long time to swallow: you need money to make money. You don't need a massive amount, but do not be fooled, it takes $$$ to make $$$$$$. Only the broke or stupid believe you can make money from nothing (these days at least). So admit to yourself you're going to have to save, save and save...and the rewards will not come for years. It's a marathon, not a sprint. It's also not fun sacrificing now for a potentially better future.
Also, you should probably consider doing something that isn't in the books, the presentations or touted by the gurus, for when they do, it's over. Take wholesaling for example...no one heard of it during it's most profitable years after the credit crisis. Then, by about 2013 - 2014 you start seeing a few posts about it, by 2015 it's everywhere and by 2016 everyone and their mother is doing it. Now the market is saturated. Same goes with the fix n flip business. So i think it would behoove you to try to find the next "thing," whatever that might be.
Last but not least, recognize that there's nothing wrong with a "good" investment. Chasing after the "best" investment costs too much in the long run.
Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
8y
Welcome to the Bigger Pockets universe @Isaac Feil !
I congratulate you in realizing earlier than most that your points (1) money, and (2) time and other people, are absolutely true. The brutal reality nobody wants to talk about is that this 'thing' called Real Estate, like anything else worthwhile in life, is hard, requires a painful change in mindset, takes dedication, practice and time.
Money is never the issue in any business. It comes when you can solve many people's problems. Most of us don't grow up learning from our parents or in school how to "make money" nor how to solve our community's challenges. We get only tought what our grandparents were taught:: prepare yourself to get a Job - A remnant of the past industrial age.
Time is of the essence. @Patrick Briton is right, it's a marathon. My grandfather used to say: "Servant years are not master years." Much of what we read, such as "10 Steps How to Make a Million Dollars in Real Estate in Less Than Six Months" or various similar "carrots" that get dangled infront of us, is deceiving in terms of how hard it is, how long it takes, how frustrating and lonely real estate can be. Do not look for the 'get rich quick formular',but look for get rich and stay rich.
People of the right mindset are hard to find. Yes, we can go to meetups, of which most will not serve your needs - start your own with your focus, invite professionals to learn from etc. And yes it's absolutely vital to read a ton of books, blogs and listen to podcasts every day to continue to grow your knowledge foundation. But nobody tells you how much persistance and focus it takes. How many people give up. Where's that team or mentor with decades of life and business smarts when you feel down and doubtful - again?
Learning is vital but can only do so much. Learn as much as you can, but also do your networking to find, join and build your team. Find a mentor or two. Online and offline. You will go through a few in the years to come. Oh, and do yourself and your mentors a favor, otherwise they will not take you onboard, or they drop you quickly: do not waste your mentors time and stay positive. You will need to trust, give up control, have faith and get down to the work your mentor puts on your table. That's where things change and get real uncomfortable and "scary" for most. Everbody wants somethings fast and for free these days. But only outside your comfort zone is where your future and success lies.
If you'd like to tag someone in the conversation, type @ followed by their name and then select the name of that person that appears below the comments box. They will be notified of being tagged so that they can jump back into the conversation.
Send me a PM should you ever get interested in commercial (5+ units) multifamily apartment investing. Syndicators like me are always looking for new partners in various metropolitan areas to grow our portfolio together.
Investor · Phoenix, AZ · Member since 2015 · 485 posts · 384 votes
8y
By the way @Patrick Britton , you're so right on with your summary.
Once the early adapters have spread the current RE "virus" or strategy at too many meetups, and the trend has become a fashion for all, most don't realize, that it's too late to jump on that band wagon. Unfortunatley they do (the greater fool syndrom) and pay the price as seen in the last crash. Everyone, their aunt and their dog was getting a "stated income" loan to buy dirt or a house they couldn't afford, silencing the inner voice of reason, letting greed take over and hoping for appreciation to take care of being way too overleveraged. It becane a mind-numbing gold rush, a national epidemic.
The challenge is to have spent enough time in the market to "see" and understand these wisdoms and act accordingly with courage and vison to do what nobody else or very few are doing or talking about now. Take CREI for instance, 3-5 years ago nobody dared to think outside the SFR/seller-financing/wholesaling/flipper box, now multifamily is becoming everybody's gig.
Thus, let us stay nimble, practice, learn, grow our network (PM me ;-) ) and expect to gradually change strategies as everything changes. Storage, notes, land anyone?
Investor · Burien, WA · Member since 2017 · 6 posts · 2 votes
8y
@Patrick Britton Thank you for replying and reminding me of that fact---very much a fact and a reminder that we do always need to be trying to critically think ahead of the curve by identifying real needs, not following the crowd.
And thank you @Ken Breeze for your great advice as well on finding the right people. I am definitely an advocate for pushing the comfort zone as I have done it time and time again so far just in my college career, so I have gotten a taste of its rewards already. I will account for your last note---good luck in your future endeavors! Both of you!