Hello everyone! My name is James. And i am brand new to biggerpockets.
My question is this. I've watched several podcasts and videos and I've got an idea now of what niche I'd like to get into. To me, buying, improving and holding onto rental properties sounds fantastic. But in all the videos ive watched, I've never heard anyone talk about what you need to do BEFORE you begin. Recently I've heard a couple times i might need a real estate liscense. Is this true? And if so, how do i go about getting it? Are there other things ill need to get out of the way before i start analyzing properties and getting my contacts in order?
Thank you all for your time. I cant wait to share my experiences here with you all.
No, you do not need a real estate license to be an REI. Some people do this, and it is a great way to cut down on your expenses, but I recommend building a team first and using an REA. First, determine the market you want to invest in and also identify a secondary market. Right now, the RE market is crazy, and having two gives you increased flexibility. Second, start building your team and focus on finding an REA that is also an investor. He or she will have a team you can use and will help when just starting. For example, the agent I use already had lender references, general contractors, and real estate attorneys. Third, make sure you have a CAPEX reserve if you're just starting. This will give you increased flexibility as you save up for future homes. My rule of thumb is $5K saved before investing in an SFH. Fourth, start networking with local investors and like-minded individuals. This will help you decrease the learning curve. Finally, set your crystal clear criteria. This will help you be decisive when it comes to taking action. If your home hits all your criteria, go for it.
Fantastic advice, thank you very much. I am excited to make this change in my life. It wont be much longer now.
@James M Fario Welcome to BP brother! I would start by trying to buy a primary residence that you can househack. That way, you can purchase a property with a relatively low down payment and rent out the extra room to have other people pay your mortgage for you. My biggest piece of advice for that is to make sure the numbers work as a long term rental for when you move out. Good luck getting started, this is a great community you are now a part of that can help you with any questions.
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