Advice for a brand spankin’ new & very excited member!

Advice for a brand spankin’ new & very excited member!

Concord, CA · Member since 2018 · 56 posts · 37 votes
Hello all of BP! I’m extremely new to all of this! Growing up I only ever saw how real estate could financially break people and so the idea of buying scared the bajeezus of me. Fast forward many moons and my wife and I are currently living in our very first purchased home. It wasn’t the right time to buy but our landlord decided he wanted to sell and gave us the boot. With rent prices insanely high it made more sense to purchase a home than to rent a house for $3,500 per month (Oakland, CA). A house with a backyard is necessary because we rescue and foster dogs. My wife had just finished a two year program at Stanford and we were living off of my income only. Credit card debt racked up a bit and now we have a mortgage and wonderful school loans to top that off. For awhile I’ve felt like life is a rat race. Go to school, get the job, buy the house and hope that a vacation gets to happen once a year. That doesn’t seem like life to me. I want more! I don’t need to be rich but I want more experiences to enrich my life. With all of this swirling around in my head I was introduced to Bigger Pockets by a friend. Sometimes it really feels like things happen at just the right tome. With all of this being said, I would love more than anything to hear everyone’s advice to someone who is just starting out. I’ve listened to a gazillion BP podcasts, I’m doing the Miracle Morning, I’m a PRO member after watching a webinar, I reached out to our favorite real estate agent and I’ve ordered a few of the books that Brandon had listed. I got some advice from a fellow BP’er to get approved by a lender ahead of time. Anything else we should do to start this new journey? I’m on the forum multiple times a day so thank you to everyone who offers up so much amazing information! I’m so grateful to this whole community.
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Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
8y

@Colleen Prescott absolutely is a great move. You don’t need to know how the whole world works. You just need to be an expert at running your own personal machine. 

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  • Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
    8y

    @Colleen Prescott Welcome to BP. I'm glad you saw the light and took a step into the world of RE. The most important thing is to first decide what your goals are. How do you want to be involved in real estate? 

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Colleen Prescott welcome to BP.  The first thing I thought when I saw the subject line is "don't be a motivated buyer"

    The books and info here will help you learn the strategies. You also need to learn, how to evaluate a deal. That you can learn from books and here on BP.  The last piece is knowing your market. That comes from being out on the streets looking at deals. 

    So I would start looking at deals and evaluating them. Look at all kinds of deals: listed deals from agents, wholesalers deals, FSBO, auctions, your own marketing and as many deals of other investors you can get into. I often stop when I see a house being renovated and go in to and meet either a contractor or other investor.

    I would also start networking and gaining the contacts you will need for this journey. A great place to do that is at local investment groups (search for REIA or Meetups)

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Heath Ryans I’m still researching that but we are thinking buy and hold would work best for us. My wife and I both work full time but I would like to eventually cut back to work on changing my career. Is that what you mean by how would we like to be involved?
  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Ned Carey thank you! This is extremely helpful. I was wondering if there were places I could go to talk with people so I’ll check out those meetups you mentioned. We are most likely going to be buying out of state so I’m reaching out to friends and family in certain areas like Cleveland and Atlanta. We will continue to research as many places as possible to see what would be a good fit for us. I’m still learning about all the different ways to be involved with real estate... wholesale, auctions, etc. I’m trying to educate myself as much as possible to understand all of this more clearly. It‘s like learning a new language! Also, my motivated buyer do you mean jumping in too quickly? I have no intention of rushing this. I’d like to learn as much as possible and meet as many people as possible before taking the leap!
  • Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
    8y

    @Colleen Prescott that's exactly what i meant. Now instead of trying to learn everything there is to know about RE, focus on buy and hold. Learn the ins and outs and get comfortable evaluating deals with renting them in mind. 

  • Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    8y
    Originally posted by @Colleen Prescott:
    @Ned Carey thank you! This is extremely helpful. I was wondering if there were places I could go to talk with people so I’ll check out those meetups you mentioned. We are most likely going to be buying out of state so I’m reaching out to friends and family in certain areas like Cleveland and Atlanta. We will continue to research as many places as possible to see what would be a good fit for us. I’m still learning about all the different ways to be involved with real estate... wholesale, auctions, etc. I’m trying to educate myself as much as possible to understand all of this more clearly. It‘s like learning a new language! Also, my motivated buyer do you mean jumping in too quickly? I have no intention of rushing this. I’d like to learn as much as possible and meet as many people as possible before taking the leap!

     Welcome to the site. If Cleveland is on your radar as a place to invest you'll want to give The Ultimate Guide to Grading Cleveland Neighborhoods a read. Tons of money has been made & lost investing out here. Make sure you know the types of neighborhoods you're getting yourself into because they vary widely.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    8y

    @Colleen Prescott 

    Many new investors are so anxious to get their first deal that they become very motivated to buy. This may cloud their judgement.  It can cause them to play with the numbers and use the most optimistic numbers to justify the purchase. 

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Heath Ryans Got it! I have been trying to learn about everting but this made me feel better... I would like to just concentrate on buy and hold but didn’t know if that was a smart move! So thank you!
  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @James Wise I bookmarked it and will read it on my downtime at work tonight. Thank you!
  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Ned Carey I appreciate you mentioning this. I work on an ambulance which has made me a realist. Although I have goals for myself I don’t dream on cloud 9 where things are only imaginary. I believe hard work produces results and I believe that educating myself is key to having a long lasting career in investing. I will probably ask a gazillion questions before I buy and will most likely present my opportunities to BP members to see if I’m heading in the right dIrection! I may reach out to you directly if that’s okay :)
  • Investor · Kingsport, TN · Member since 2016 · 412 posts · 254 votes
    8y

    @Colleen Prescott absolutely is a great move. You don’t need to know how the whole world works. You just need to be an expert at running your own personal machine. 

  • Flipper/Rehabber · Oak Creek, WI · Member since 2017 · 52 posts · 12 votes
    8y

    @Colleen Prescott

    Welcome to the BP family looking forward to seeing your success in real estate. If i can be of any assistance let me know. 

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Luis Sosa Thank you! I’ve heard Milwaukee is a great place to invest. What’s your opinion on this?
  • Flipper/Rehabber · Oak Creek, WI · Member since 2017 · 52 posts · 12 votes
    8y
    @Colleen Prescott Well Colleen I am a newer real estate investor and I dont know how valid my opinion is but so far so good. I think milwaukee has still a good amount of transitional neighborhoods were someone can get a great deal on properties. I have also done aome reasearch on the rental market here and ot seems like there is a great potential for some good cash flowing peoperties, specially in low income rentals, but thats just my opinio. I am learning everyday and will continue to learn my market and eventually be able to invest out of state. How is your market?
  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Luis Sosa California is insanely expensive. Maybe years from now we could afford it but right now that’s just impossible. We are definitely looking to invest out of state. Our good friend had suggested parts of Florida so we are looking into that and also Atlanta. Someone on here mentioned Syracuse as well. I am learning as much as I can and figuring the numbers out on as many properties as possible just to get the practice in! Good luck to you!
  • Colorado Springs, CO · Member since 2018 · 85 posts · 144 votes
    8y

    @Colleen Prescott - First of all, welcome. Second of all, good for you in taking control of your life and deciding not to be subjected to the rat race. Third of all, PM me if you want my unvarnished thoughts on Syracuse.

  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    8y

    @Colleen Prescott Welcome to BP! Best advice I could give is 1. Learn what strategy you want to implore and 2. Learn real estate numbers so that you can become versed in deal analyzing.  

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Shawn Ackerman Yes! That’s where I’m lacking.... real estate numbers. I’m trying to read up about that as much as possible. I have to admit... the numbers scare me but I’m slowly starting to understand them. Any suggestions for books to read that may help me more with that part of REI?
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    8y

    @Colleen Prescott have you thought about your Niche yet?  Flippikg, whokesale, buy and hold etc??  Here is @Brandon Turner breaking down renral property numbera and deal evaluation.  Sorry, not the biggest reader but the ultimate beginners guide is a good read for atarting out. Here is the link-https://youtu.be/T_7vhsSBi7c

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Shawn Ackerman Buy and hold seems to be what may work best for us. I have the beginners guide... need to print it out. I hate reading off of a computer :)
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    8y

    @Colleen Prescott Ok, that's a pretty simple Niche.  The good thing about learning the numbers is that the formulas never change and you will be able to spot a deal from a mile away.  Check this link out.  It breaks down some basics on real estate numbers.  https://www.coachcarson.com/run-the-numbers-investment-properties/#4

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Shawn Ackerman this is exactly what I needed! Thank you!
  • Shawn AckermanPro Member
    Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
    8y

    @Colleen Prescott happy to help. All the best to you on your REI Journey!!

  • Concord, CA · Member since 2018 · 56 posts · 37 votes
    8y
    @Shawn Ackerman thank you!!!
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