New to Real Estate Investing!

11 Replies

Hi BP members, 

I have been researching Real Estate Investing for a while now and would like to start! I currently live in the Minneapolis-St. Paul area. I wanted to hear from you all, some tips that you wish you knew when you started. Whether that be connecting with certain people, going to certain meet ups, or headaches you could have avoided. I would love to connect with some locals as I have the time and the drive to get this career started.

Looking forward to connecting with everyone!

Thanks, 

Jarod Blackowiak

Hi @Jarod Blackowiak . I just became involved in this community a few weeks ago. I'm having difficulty creating the hyper link, but Alyssa Strom (realtor) and Tim Swierczek (lender) have been instrumental in helping me get going. Both of them responded to my emails within hours (often less than an hour) even while on vacation! If you post some specific goals you have (i.e., house hack, BRRR, etc.), I think this community will be able to give you some great advice.

@Jarod Blackowiak - Welcome! I would agree with Richard. Honestly just hanging around these forums will give you some great connections. There are many here who have been beyond generous in giving me time and answering questions. As he shared, it might be helpful for you to share what your goals are with investing, as recommendations would be highly linked to those.

The biggest thing I see new investors struggling with is gathering relevant information for their analysis - most assume figures they can't or don't want to put the effort in to find and that assumption ends up being wrong. 

Do endless dry runs when it comes to rental property analysis. Look up actual tax records to find out what the annual taxes are. Call the electricity/water/gas/garbage/sewer people and find out what the real cost is. Get an actual quote for insurance. Scour Craigslist and look up other rental listings to find out what the property could rent for or call a property manager and ask what they think.

In short, never assume. You must know with certainty what your income and expenses will look like otherwise you're relying on luck.

I think i'm still very very new as well. But these are the things that helped me get started: 

1. Cut cost on EVERYTHING. Living below your means. It's nice to be able to leverage other people's money but the first few years you need to get your credibility build up. Save as much cash as possible.

2. Make educated decisions. Ask people here questions. 

3. Know your number. Analysis all the deals. make time to find comps and make sure your number work.

4. Do it. I made mistakes on the way might be the best way to learn honestly. 

5. Have fun!

@Jarod Blackowiak welcome man! I'd definitely say utilize the events page on here to search local meetups. Search by zip. Meetup.com is another hidden gem.

One thing i wish i knew when starting was taking more time to evaluate a market and knowing the numbers on a deal to a tee.

Let me know if you want to grab coffee and talk shop anytime.

-Bjorik

Hi @Jarod Blackowiak welcome!

@Jingru Sui made some great points. Number 5 especially!

I would get around as many different investors and events as possible as others have mentioned. I’d also continue to hang out on BP, listen to podcast, and read as many books as you can. Then decide on which strategy to focus on and go deep there. Find a mentor who is succeeding at the niche you want to focus on and let them guide you through your first few deals. Set goals, take action, keep learning, keep networking.

@Jarod Blackowiak Such a big question and I get why you are asking.  There are literally hours of advice I could give you but if I really think of 2 key things I would suggest you analyze closed properties, instead of waiting on new ones.  You could analyze 5 per night for a month and that would be 150, much more than you can analyze by waiting for new homes to come on the market.  The second is to take action, reading books is great but it will not replace what you learn by doing.

PM me if you want to grab coffee sometime and talk more.

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