Brand spanking new and never closed a deal

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Brand spanking new and never closed a deal

Daniel Buck
Member since 2019 · 3 posts · 3 votes

Hola BP friends,  I have been lurking around the BP forums and podcasts for a little bit of time now and thought no time like the present to introduce myself.  This is actually my very first post of any means.  I have been inspired by so many of you and your stories of success and hardship.  I think the journey is something of beauty in and of itself.  I still feel very anxious and nervous about jumping into my first deal (which i have not done at the time of this posting) but find comfort in knowing that this is not something that I will be alone in and have such a great community here at BP forums to help me along the way.  

I currently live in Fresno, Ca... work a retail management position and put in many hours there. Would love to have freedom of time to enjoy my children grow into wonderful people themselves and not miss all the milestones along the way which is why I am so interested in REI. I am very good with numbers and networking but am stuck in analysis paralysis phase so far. I don't have much cash to use in my beginning chapter of my investments but know I can find value in my strengths, and I am realistic when it comes to my weaknesses.

I have heard it so many times but what is the best tip you can give to get me out of my analysis paralysis zone and into a flow of investments? 

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Travis DeForge
Rental Property Investor · Wiesbaden, Germany · Member since 2019 · 49 posts · 50 votes
7y

@Daniel Buck

1) Figure out what type of real estate investment you want to get into. Get laser focused on that. A lot of times when people start out with a new investment class they are learning so much so fast they learn a little about everything. Find what makes you the most comfortable and zone in on it specifically and deliberately.

2) Determine who your target customer base is going to be based on the type of real estate you decided on in step 1.

3) Come up with a list of criteria that would be important to that specific customer base. Sort those criteria into a few categories and rank them from most to least important.

4) Look at different areas that meet the top criteria that you have set. Once you have found a few areas that you assess will have your target customer base then it is time to start looking for the deals.

By knowing the "where" and having multiple options on standby for places you would like to buy in, it gives you the flexibility of being able to talk to several brokers in different markets and finding the property that is going to work for you mathematically in a location you already know is going to be effective for your target audience. Knowing that at least the location is right will give you a lot of peace of mind going into your first deal.

If I can help expand on this anymore for you feel free to message me any time.  

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  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    7y

    @Daniel Buck What's up Fresno! I grew up in Modesto. Two things I would share: 1) find a local REIA club by going to biggerpockets.com/meetup and start attending it to meet people, learn, etc. 2) Study the concept of House Hacking. imo this is the easiest way to begin. Low down payment (5%) on a conventional loan and a great first step. Buy a 2-4 unit, occupy one unit and rent out the others. This is by far the easiest way to begin in my opinion. If you end up house hacking, find out who the rockstar RE agent is in Fresno and go hunting :) Welcome to BP.

    0Reply
  • Chad Deihl
    Real Estate Agent · Sacramento Region · Member since 2016 · 52 posts · 32 votes
    7y

    @Chase Hancock, let's connect.  We have mutual interests!

    1Reply
  • Travis DeForge
    Rental Property Investor · Wiesbaden, Germany · Member since 2019 · 49 posts · 50 votes
    7y

    @Daniel Buck

    1) Figure out what type of real estate investment you want to get into. Get laser focused on that. A lot of times when people start out with a new investment class they are learning so much so fast they learn a little about everything. Find what makes you the most comfortable and zone in on it specifically and deliberately.

    2) Determine who your target customer base is going to be based on the type of real estate you decided on in step 1.

    3) Come up with a list of criteria that would be important to that specific customer base. Sort those criteria into a few categories and rank them from most to least important.

    4) Look at different areas that meet the top criteria that you have set. Once you have found a few areas that you assess will have your target customer base then it is time to start looking for the deals.

    By knowing the "where" and having multiple options on standby for places you would like to buy in, it gives you the flexibility of being able to talk to several brokers in different markets and finding the property that is going to work for you mathematically in a location you already know is going to be effective for your target audience. Knowing that at least the location is right will give you a lot of peace of mind going into your first deal.

    If I can help expand on this anymore for you feel free to message me any time.  

    1Reply
  • Jeff Zimmerman
    Real Estate Agent · Fresno, CA · Member since 2014 · 367 posts · 174 votes
    7y

    What's up @Daniel Buck , congrats on getting up and running,  Your first deal is always the hardest so i've found that having the mindset of just getting through the first one is the best way to put your fear aside and make it happen.  The fear will always exist but i've always reminded myself of what John Wooden (legendary UCLA basketball coach) said.  he defined success as doing your best, nothing less, nothing more.  So if you get started and the first one doesn't cash flow or even loses money, it's ok, as long as you did your best you can sell that property, take your new knowledge and start on the next one.  You will also find that RE is pretty forgiving when you make mistakes.  I lost money for two years trying to add value to a property and then when i went to sell it i ended up averaging 33% average annual return (imagine how good it would've been if i couldn've gotten it to cash flow).  Now things are going really well, but you just have to get through the first one.  So be smart, do you best and it will all work out as long as you don't quit.  

    If you want to talk fresno market, message me anytime.  Good luck!  

    1Reply
  • Jason Pritchard
    Investor · Clovis, CA · Member since 2015 · 92 posts · 84 votes
    7y

    Hi, @Daniel Buck I have a similar background when it comes it my work experience as well as the reasoning behind why I got into REI. The bottom line is that you just have to start.......unfortunately, most new investors that I meet get stuck in the same position you're in now because they are unwilling to get started. I had no prior real estate experience when I transitioned from my corporate job but I was not afraid to get the process started.

    If I had to do everything all over again I would spend the vast majority of my time learning how to market to/get in front of as many "motivated sellers" as possible.  Nothing else really matters until you can start talking to sellers that are motivated to sell their property for some other reason than netting as much money as they possibly can from the sale.  Generally speaking, those sellers own properties that are distressed, have problematic tenants, are vacant, were inherited, have code enforcement issues, are in preforeclosure, are in tax default, owners are going through a divorce, etc, etc, etc.  The faster that you can learn to get in front of these sellers on a consistent basis the faster you will start doing deals.

    I run a local REIA on meetup.com that meets once a month. Our next meetup is tomorrow 4/8/19 at 6:00 pm. We usually get between 80-90 people in attendance so feel free to join us so you can meet some other like-minded individuals.

    Let me know if you have any questions or if I can help with anything.  

    1Reply
  • Sean Monahan
    Real Estate Professional · Fresno, CA · Member since 2014 · 19 posts · 5 votes
    7y

    Hey @Daniel Buck you have received a lot of great advice and since I am in a similar situation I just wanted to encourage you with your goals. When dealing with other large tasks I have found it easier not to focus on the big goal but just the next step, then the next. If I can help or encourage you anymore just let me know.

    1Reply
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