I also posted in the pro forum, but wanted to reach out to my local family.
I am new and really need as much advice as I can get
My first question is: what is my next step?
I am currently 100% owner of E&S Properties LLC. This was my first investment in myself and a small nudge to push me in the right direction. I am saving every cent I can to buy my first property. I have spoken to a mortgage broker and have joined BP as a pro. What do I do next? I have 2,000 in the bank (a long ways to go), and a passion for real estate and passive income.
Can't wait to hear all your thoughts.
I would start by going to the monthly real estate investors meeting in Warwick, and just spending some time on here digesting the tons of information. Also start thinking about how you want to invest. Buy and Hold? Buy and Flip? Notes? Etc.
Best of Luck.
To just put it out there, I don't think starting an LLC provides any value in your position, other than to make it feel like you are taking action. I understand it's a first step and that's good, but what I think you should first do is get an idea of where you want to end up in real estate investing, fix and flips, rentals, wholesaling etc. To answer that question, you need to download a few ebooks from real estate investors and read them. This will give you a high level overview. Also attend local real estate investing meetings in your area. Then once you know where you would like to end up, you can create a step by step plan to get there, then every day work towards taking one of those steps to reaching your goal and over time you will get there, along the way you may also realize that you end goal is different than when it started. Basically, start taking action on things that will give you results, get educated while saving money is first.
Evan, I responded to your other post suggesting you meet with your mortgage broker to review your finances and what you can afford now, vs. what you can afford when you have various higher down payment amounts.
@Sam Albert is right that visiting one or more local REIAs such as RIREIG in Warwick or Black Diamond REI in Massachusetts, is a great idea too. You may find others in a similar place and get together with some of them to mutually support each other, or get together with more experienced investors for coffee, etc.
As others said, you can also do some reading and listening (such as to the BP podcasts) to educate yourself more, so that when you do have a bigger down payment saved you'll have more knowledge under your belt.
(Just remember that book/audio/class learning only goes so far, action/experience is the real teacher, and don't go to any seminars as many of them are just well oiled sales machines that get people to go to a free/cheap introductory seminar and then progressively upsell them to more expensive ones - which would actually reduce your cash and take you further away from your goal of owning property!)
Another option would be to learn about wholesaling as a way to build up additional cash for a down payment, but you sound like this is all new to you, and wholesaling is actually a bit complicated once you get into it. It's certainly do-able, but you do have to have a minimum level of familiarity and comfort with real estate, and the # of wholesale deals I've done that have become complicated/hairy/stressful far outweighs the ones that went smoothly :)
You might be better off paying a small amount to sit through the real estate pre-license courses they give to new agents, just to get familiar and comfortable with a wide array of real estate terminology and issues (as well as get a better understanding of how real estate agents/brokers/etc. work).
(There are many places to take such classes but I still think RIAR might be the best one, and while 99% of the people in the class are there just to take the salesperson exam at the end, you can absorb all the knowledge and then just not take the exam. I did that back in 2003 and still recommend it to newer folks.)
I have been a real estate investor since 1992 and I agree, first and foremost I would recommend that you join you local Real Estate Investor Association, I have spoken as a guest speaker at the Warwick REIA and the organizer Rick Cohn is wonderful, he really does a great job of focusing on the educational aspect versus bringing in a ton of people just trying to push their "system" or "product" to the members ("buyer beware"). As a mentor myself, I am disgusted by these "snake oil salesmen" who fly in to sell a program of some sort and don't know the market and more importantly do not provide actual mentoring or guidance of any kind. They sell you a bunch of materials and get rich quick story. I can say first hand that this is not an easy business. It takes perseverance, patience, knowledge, and a very thick skin, not to mention seed money. Just like any start-up you have to have a fund to start or partner with someone who does. Feel free to reach out if you have any questions. The Rhode Island REIA website is www.rireig.com (please note, I do not receive any payment for this referral). Best of luck.
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