Working for knowledge, not for money..?

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Chris Martin · Answer

See also this BP blog by @Mindy Jensen which is worth reading.

Rick Stein · Answer

I echo what Jim said. I would ad, it would be advantageous to join your local REIA (real estate investment association). For what is usually a minimal fee you get education from people who have "been there and done that" and, equally as important, the opportunity to network. I have been in the real estate business for thirty one years as an agent, office manager, REO agent and investor. When I Joined my local REIA about six or seven years ago, it changed my investing life. I have formed invaluable relationships with wholesalers (who actually know what they are doing)  and investors who have financed some of my properties and to whom I have wholesaled some of mine.

Getting your real estate license is an advantage only in that it gives you access to the MLS. It teaches you nothing, though about investing. The vast majority of agents know precious little , if anything about investing. It is not their fault as they are not taught that discipline. Investing is as much about creative financing as it is about the brick and mortar.

However, you do have a wonderful advantage in being in construction because you can look at a rehab and know, not only what it needs, but also the cost. Just get more education, network with people who can help you and go for it.

I wish you the best of luck,

Rick

James C. · Answer

David,

You don't need to be an agent to learn property sales. Matter of fact, if you switch to being a RE agent, then you are looking at 3 years-ish to establish cash flow for a bank. You have more of what you need to do real estate now than 99% of folks that start.

My best advice is to stay in construction (you have an established track record) and use those contacts to rehab properties using a BRRRR strategy. The pieces that you are missing are fairly easy to learn, especially if you have any knowledge of construction finance/draw process and reading/executing contracts.

You are going to have to learn how to do an APOD, but that is much like a construction budget. The contract for sale of real estate is like any other contract... read it, ask questions and think a bit. Valuing property is easy, since one of the approaches to a value is the cost approach, which you already know. Adjustments to sales comparables are done on a "cost to cure" value (i.e. construction cost to repair or make like the other property). If you have ever been on a construction site where you have draw inspections, some of the time, that person is an appraiser. Go make friends with them... it will be an excellent step forward. If you are involved with contracts for construction, excellent. If not, see if you can help the folks that do that work, or at least pick their brains over a beverage. I could continue to belabor this point, but I think you get it....

Your best step forward is to read on the boards here, find a good mentor, real estate agent, good money lender (Bank, Mortgage Broker, someone you have done work for). Your best bet for a mentor is anyone that you have done work for that has multi-family properties, or is a real estate investor.

In essence, start working your contacts and filling in those pieces you are missing. You have a TON more knowledge than you think you do... it's just a question of looking at it the right way. Don't focus on what you are lacking, use what you know now to fill in the gaps as you go.

Most importantly, go get started!

Good Luck!Jim

Antoine Martel · Answer

David.

Welcome to BP!

Great question and you have the right mindset. I think you should reverse engineer what you want to do. Being a broker or an agent won't help you become an investor, if that is what you want to become.

Working for knowledge, not for money..?

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