Newbie from Mesa, AZ

[Christene B.]

Hi! I'm a newbie investor based in Mesa, AZ (Greater Phoenix area). I've very recently become interested in real estate investing because of financial planning. After thinking about financial goals and wanting to be able to achieve financial freedom, it seemed real estate investing would be the best course of action to reach our family goals. 

I'm only a month into learning about real estate investing--I'm listening to the BP podcast, the Rookie podcast, and a handful of others. I'm also trying to read as much as much as possible. Since I don't have a lot of time to put in the sweat equity, I'm interested in single family rental properties that don't need a lot of work (or none at all). We're in the process of saving up money right now while I continue to educate myself. The plan is to find a property where we can house hack and then rent our current home out. 

Very excited to be here to learn and grow! 

[Brian Geiger]

@Christene B.

Congratulations on taking the step towards investing in Real Estate. I've seen so many people including me become successful in this endeavor. As a resident of the Phoenix Metro, I can tell you that Phoenix is an excellent market to invest in.

May I give you a word of advice:

1. Know Your Market and know it well: Just like the economy, markets can change. The key here is to focus on net-migration and job diversity. You want to know where people are moving to when looking to invest. I mentioned that Phoenix is a really good market however like any market, there are sub-markets that I would stay away from because the deal it self doesnt pencil out. 

2. Learn how to analyze Single Family Rentals: The key here is Cash on Cash Return and Cash Flow. 

3. Get Educated (You are already doing this): A lot of people listen to podcasts and read books which is good but you need to get out and talk to people (or in this case zoom conference people). I recommend you go on Meetup.com https://www.meetup.com/ and find some groups that fit your criteria i.e. Single Family Rentals. Be careful of going to meetups that are pitching a course or a program to you. In my experience, you can learn this business by networking with people and getting educated in it. Now if you want a mentor, find one with years of experience doing what you are doing and can teach it well. A lot of people can not explain things at a level that is understandable and you want that person to be accountable to mentor you and get you to their level in RE. 

Now for books, Here is my top Five Books for anybody Interested in Investing in Single Family Rentals:

1. What Every Real Estate Investor Needs to Know About CASH FLOW and 36 Other Key Financial Measures by FranK Gallinei

This book not only explains how to analyze for positive cash flow. But it also explains how you can negotiate a lower price on properties and get a good Cash on Cash return on your deals. EXCELLENT BOOK FOR WHAT YOU ARE DOING.

2. Recession-Proof Real Estate Investing by J.Scott:

When I started this post, I said you must know your market before you invest. This book will explain each market cycle and give you an idea on how to apply it to your current market. It also explains which Real Estate Investing Strategy will work well in each market cycle.

3. One Rental at a Time by Michael Zuber: Michael is a RE investor out of Fresno California and his strategy is Single Family Rentals. His story is interesting because he started off with nothing and now he has a nice portfolio of SF Rentals. He has a really good youtube channel that he offers very valuable content. You should definitely check it out.

4. How to Create Lifetime Cashflow Through Multifamily Properties by Rod Khleif: I know you mentioned SF Rentals but the strategies he explains in this book works very well in SF Rentals. In addition, Rod explains the type of debt options that an investor can take to use as leverage when buying SF Rentals.

5. Financial Freedom through Rental Property Investing:

4. I recommend running your SF Rentals like a business instead of a hobby because you can definitely make more money doing it this way. So after a while you need to bring on investors to invest with you so you can scale up. The best way to attract investors believe it or not is a BRAND! Most people think experience is what does it but I continue to see that to not be the case. It is how a deal is presented and how good the person is at branding themselves that will do the trick. 

5. Get the right legal and asset protections around your business. For this, I would talk to an attorney. A good attorney that represent RE Investors in Phoenix is Roger Spencer. The guy is brilliant when it comes to asset protection in Arizona regarding RE. His contact info is 

Roger K. Spencer, Esq.

Law Offices of Roger K. Spencer, PLLC

777 East Thomas Road, Suite 120

Phoenix, Arizona 85014

(602)279-0101 – Office

Good luck and be well.