New to Real Estate · Port Orchard, WA · Member since 2020 · 12 posts · 2 votes
Wife and I are planning to begin our real estate investing next year as we want to tackle all of our student loan and car debt before beginning. How can we best utilize this idle time to avoid some of the errors and headaches that newbies encounter? We have started reading books and listening to podcasts to gain general knowledge. Our plan right now is buy and hold with BRRRR mindset. Any other tips out there? Planning to invest in my local market in the Kitsap County area in Washington, thanks!
@Joey Walker I'd start connecting with local providers and asked to be looped in on deals. That way you can start figuring out how to evaluate.. what a good deal looks like etc. Once you get going you'll need to be able to move quickly. Use this time to practice!
“Don’t wait to buy real estate. Buy real estate and wait.” - Will Rogers
Seriously, after you get started, you will be asking yourself, “Why oh why didn’t I start sooner 😫!!”
My wife and I were in the same boat last year. I transitioned jobs and had some money from my 401k with the previous company that would have put a huge dent in our student and car loans. Instead, we bought a four unit multifamily quadplex.
If you buy right (get a bow market deal because it needs some work) and planning to BRRR anyway, the money you were going to use to tackle your loans can get you a investment property, you fix it up, increase its value, get it rented and then refinance after 6 months and get back most if not all your initial investment back.
Then if you want, take care of the loans but will at least have your first one sooner rather than later. Other advice is find out how to go bigger, faster!
@Joey Walker, I'm happy to chat over coffee if you're game. I live in Poulsbo and love it here for many reasons. :-) Inventory is super-tight right now, but things will change eventually. In the meantime, best to have a good plan in place. PM me if you'd like to meet up.
@Joey Walker I'm guessing the interest on the student loans is relatively low. How much is the interest on the car loan? If both are at low rates and your credit is good, I would save and buy a rental instead of paying off the loans (obviously continue to make the regular payments). Once you have the rental, you can use the extra income from that to pay down the other loans faster.