Brand New to Real Estate Investing **Please Help:(**

New Member Introductions
6yFollow

Brand New to Real Estate Investing **Please Help:(**

Austin Shulman
Member since 2020 · 4 posts · 2 votes

Good afternoon fellow Real Estate Investors, 

I've come to realize that investing in the stock market is way too volatile. To be honest, I don't understand how company stocks increase or decrease in value. I don't have the brain capacity to study charts and research stocks in different market sectors. So, I decided to funnel all of my money into real estate because I believe real estate is: 1) Easy to understand  2) Has helped people become financially free for decades. 

My big question is where do I start? 

The backstory about me: I'm a mathematics teacher in Denver and I love to see students have those AHA moments when they understand something. Sadly, as a teacher, you don't have the ability to earn a lot thus it becomes challenging to put 20% down on a property. I'm trying hard to save as much as possible, but at the same time enjoy life as a 24-year-old living in a cool city like Denver. 

Any way that you could help me would be much appreciated. But, most importantly I would love to chat with you and hear your journey.  

Hope to hear from you all soon. 

-Austin S. 
 

2Reply
26 views

Most Popular Reply

James Carlson
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
6y

@Austin Shulman

Welcome to BP! And congrats on taking a small step toward real estate investment in Denver. So many things you can do to get started.

  • I'm assuming from your post that you don't own the place you live? If that's the case, I'd suggest buying your primary residence. Maybe that's a SFH in one of the Denver neighborhoods that haven't gone as super nuts with prices -- I'm thinking Athmar Park, Barnum, East Colfax, Englewood. Those places have some great appreciation potential. Or maybe it's a condo. Either way, I think taking action to get your first home is the best first step.
  • Talk to a lender to see what financing would look like. Any good agent will have a few great ones.
  • Look into down payment assistance programs, like CHFA's. I've worked with a few people who used this, and it's a great way for those without a lot of reserves to get into a home.
  • If you really want to kickstart the investment side of this, opt for house hacking in Denver. Two options with this: Find a 4-5br home and renting the other rooms. (This likely gets you the best returns, but it also is the least privacy. (Here's an example from some buyers of ours.) Or find a home with a basement apartment or an ADU that you can rent out separately. Not quite as much rent money, but you have your own uninterrupted space.
  • Set up keyword alerts for these forums, so that any time someone mentions, say, "house hacking," you get notified. Also, you should follow the Denver real estate forum. 

I wish you luck!

3Reply
See this reply in the discussion

10 Replies

Jump to latestLatest
  • Ryan IngramBusiness Member
    Rental Property Investor · Dayton, OH · Member since 2017 · 246 posts · 225 votes
    6y

    Hey Austin, I think you're on to something and I wouldn't put down your profession. Dave Ramsey put out an article after studying thousands of self made millionaires and teachers were in the top 5 careers. You can see that here. I'm saying that not to promote Dave Ramsey, but to encourage you. 

    I'd be happy to chat as well, my cell is (704) 706-4548 feel free to text, I respond to that best. 

    My wife was an assistant principal, 33, and I was 27 when we moved from NC to OH about 3 years ago. We now have around 64 doors. We started with about 120k in cash...and kept getting more and more creative. 

    I'd be happy to share with you everything that I know and have learned over this time. I've also started a youtube channel that revolves around the same. 

    Looking forward to learning more about you!

    2Reply
  • Andrew AdamBusiness Member
    Real Estate Agent · Sioux Falls, SD · Member since 2014 · 159 posts · 111 votes
    6y

    Hi Austin,

    I hear ya! I was a teacher myself not too long ago. I had purchased a duplex by house hacking and only putting 3% down while my wife and I lived in one side and rented out the other. It took a few years of hustle and sacrifice but once we saved up 25% for the next one we were able to buy a 4-plex too. I was teaching and self managing those 6 units for a few years. I think I could have continued to leverage them with refinances and grow the portfolio nicely for a decent retirement. So if you want to start it might make sense to get a place and rent out the other rooms, or get a small multifamily with FHA financing.

        I didn't stay teaching as I was bit by the bug and went into property management full time. I also got my real estate license and the rest is history. 


    Let me know if you have any specific questions I might be able to help with,


    Have a great day!

    -Andrew 

    0Reply
  • Justin WindhamPro Member
    Banker · Nationwide · Member since 2015 · 4k+ posts · 1k+ votes
    6y

    @Austin Shulman

    Welcome to Bigger Pockets!

    This is a great place to learn and network. A lot of forum members are very knowledgeable in their respective fields related to real estate investing, whether that is real estate sales, wholesaling, flipping, rentals, lending, self-directed IRA and Solo 401k investing, or tax and legal guidance.

    Discounts on some products and services are offered to BP members: https://www.biggerpockets.com/perks/pro

    If you haven’t been to it already, you might want to check out the BP blog: https://www.biggerpockets.com/blog/

    The site has quite a few tools that can be helpful for new members. I like the search features: https://www.biggerpockets.com/search

    0Reply
  • Jasmine Grier
    Investor · Atlanta, GA · Member since 2020 · 21 posts · 9 votes
    6y

    @Austin Shulman

    King! Foremost you’ve just made one of the best and most life changing move by investing in real estate.

    Would love to connect with you to provide you value and give you resources.

    2Reply
  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    @Austin Shulman

    Welcome to BP! And congrats on taking a small step toward real estate investment in Denver. So many things you can do to get started.

    • I'm assuming from your post that you don't own the place you live? If that's the case, I'd suggest buying your primary residence. Maybe that's a SFH in one of the Denver neighborhoods that haven't gone as super nuts with prices -- I'm thinking Athmar Park, Barnum, East Colfax, Englewood. Those places have some great appreciation potential. Or maybe it's a condo. Either way, I think taking action to get your first home is the best first step.
    • Talk to a lender to see what financing would look like. Any good agent will have a few great ones.
    • Look into down payment assistance programs, like CHFA's. I've worked with a few people who used this, and it's a great way for those without a lot of reserves to get into a home.
    • If you really want to kickstart the investment side of this, opt for house hacking in Denver. Two options with this: Find a 4-5br home and renting the other rooms. (This likely gets you the best returns, but it also is the least privacy. (Here's an example from some buyers of ours.) Or find a home with a basement apartment or an ADU that you can rent out separately. Not quite as much rent money, but you have your own uninterrupted space.
    • Set up keyword alerts for these forums, so that any time someone mentions, say, "house hacking," you get notified. Also, you should follow the Denver real estate forum. 

    I wish you luck!

    3Reply
  • Zac Newell
    Investor · Hove, United Kingdom · Member since 2017 · 42 posts · 34 votes
    6y

    Welcome to BP @Austin Shulman.  My sister is a 25 year old teacher in the Denver area.

    I like what @James Carlson said.  I bought my first primary residence in Denver at 23 years old and rented rooms to my friends.  I was on a tiny paycheck at the time but that was probably the best financial decision I've ever made and is still paying me today.  Buying your own residence allows you to take advantage of some great financing requiring low downpayents.  For future prospects you really can't beat Denver these days.

    Happy to chat and discuss your situation and see if there's anything I can do to help.  Send me a Private Message if you're interested.

    2Reply
  • James Baker
    Property Manager · Pittsburgh, PA · Member since 2018 · 27 posts · 15 votes
    6y

    @Austin Shulman

    If you’re only 24% my best advice would be to start by house hacking.

    You can buy a property with 1-4 units, live in 1 unit/bedroom and rent the rest.

    You can do all of this with a 3.5% down FHA loan.

    PLUS, you’ll be building equity, which in result with eventually help you pull a credit line for your next purchase!

    This is a great way to

    1. Get started in real estate with minimal risk

    2. Live rent free

    3. Potentially earn some rent

    4. LEARN

    Craig Curelop has a fantastic book called the House Hacking Strategy.

    I would highly recommend giving it a read. It’s published by BP.

    Good luck!

    1Reply
  • Craig CurelopBusiness Member
    Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    @Austin Shulman - Good to see you posting on here! 

    As you know, you certainly don't have to put 20% down on a property here. You can put down 3% to 5% when doing an owner-occupied loan. That will be the best strategy for you to get started! 

    [email protected]Podcast Guest on Show #350
    1Reply
  • Account Closed
    Real Estate Agent · Member since 2020 · 28 posts · 12 votes
    6y

    @Austin Shulman

    Hi Austin! I totally understand the frustration of stocks. I also took the leap of faith from doing stocks and charts everyday to investing in real estate. Feel free to message me and I can give you some of the tips that helped me get started.

    Have a great day!

    0Reply
  • James Carlson
    Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
    6y

    Well, I like what @Zac Newell said about him liking what I said. ;) Nothing better than a little Tuesday morning ego boost. 

    @James Baker's right about the FHA 3.5% down loan program being a great way to get in to a home, especially in a hot market like Denver. (It's practically step one in the house-hacking playbook.) Your monthly payments are going to be higher with that little amount down, but if a good option for getting into a place if the alternative is waiting another year or two to buy.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free