Hello BP family!
Ever since I joined the BP a couple of years ago and read many inspiring stories, I FINALLY decided to take major action and quit a solid paying career as a surgical device sales rep to focus on REI full time (I decided to go all in and apply the sink or swim method). I don't have initial capital to invest; however, I've read from the forums that I need to create value for to the REI community so I decided the most logical next step is to get my RE license.
I am extremely motivated and hardworking; after I set my mind on a goal, there is no stopping me. After quitting 2.5 months ago, I have taken the required curriculum and successfully passed my California RE exam. Now, I'm waiting to receive my license in the mail as we speak. Understanding that continuous education in real estate is important I've listened to the BP podcasts, BP webinar classes, read the following books (just to name a few):
- Rich Dad Poor Dad
- Cash Flow Quadrant
- Investing in Duplexes, Triplexes, and Quads by Larry Loftis
-Guide to Buying and Selling Apartment Buildings by Steve Berges
- The Book on Flipping Houses
-The book on Estimating Rehab Costs
I'm writing this post to hopefully find someone out there who can walk me through a deal from start to finish. I want to learn how to find deals, run the numbers, and find investors to fund them. In return, I'll do ANYTHING that adds value to your REI deals whether it be driving for dollars, writing hand-written notes to potential home-owners you want to buy from, picking up phone-calls from tenants you don't want to deal with, making spreadsheets for you, tiling the kitchen or bathroom, pulling out the toilet you don't want to touch... anything that brings you value. At the very least, I could buy you get a free lunch and I can pick your brain for 30 minutes.
Otherwise, I would love to get any and all advice on the best steps of how to build a successful REI career here.
Thank you BP family! I am really excited to embark on this new adventure in my life and hope to get to share it with you from here on out!
I wish you wouldnt have quit your job first, but we already crossed that bridge. Generally you want to quit your job after you replace your income. I will help you if you wish. Tell me about your deal. It sounds like you need to get a move on and start replacing your w-2 income very quickly.
Thank you for your help in advance. I don't have a deal in hand yet. And, would love to learn how to find deals and build capital needed to invest in future properties. Do you have any recommendations there?
My husband is completely supportive of my career switch. He understands the long-term plan with REI and is willing to be our W-2 for the moment. Together we have about $30k saved but not enough to buy a home in the SF Bay Area.
Lets start by finding a deal. I like to yellow letter out of town owners or expired listing. That being said, we need to find a city for you. do you have any connection to cities outside of CA?
Ok.. first things first. You have your RE license, but where are you going to hang it? You can't get a commission on the sale of real estate without being under a broker. So, if you want to learn real estate AND you have put the time, money and effort into getting a license, then spend a few minutes looking for a good agency. C21, ERA, CB, and KW are known franchises. I used to work for a C21 franchisee, and I have heard good things about KW. (FWIW, I had my own agency as well). All of them have good canned new agent programs that teach you about real estate and how to sell. Keep in mind you will be splitting your commissions with the agency (probably half to start). It's a cost of learning the business. Stay away from the 100% commission brokers, and non franchise agencies for the moment, since they tend to be for experienced agents, and as a result have weaker new agent programs. Once you are in the training program, and FOLLOWING IT, then I would be having lunch (or coffee) with the following folks: Mortgage brokers / bankers/ HML, appraisers, closing attorneys and any agent with a BROKERS LICENSE in your agency with 10+ years of experience and grey hair (NOT your manager/DB). Ask them 47 million questions about their business and how it works. Once you get a listing or a buyer and get the process, then start buying for your own account. Most agencies allow at least one sale per year to agents without a split to the agency (you will probably have to pay e&o, but that is minimal ). You will then use the commission as a down payment for your purchase. Because you know the bankers appraisers etc. and you have seen the process, you should be able to get it done. In the process of doing all this, you will come across most every possible scenario that you find on BP. Those folks you took to lunch, they are your support system and meal ticket. Keep building your contact base and growing your businesses, brokering and buying for your account. Once you do that, then you will find money, investors and deals to make it go.
Thank you very much for your advice. I was looking into KW, C21, and other big franchise brokerages to hang my license so that I can learn from their training program. I know that I'll also have some time in my hands as I get my business started so I wanted to reach out and learn from other BP'ers too. I just want to be a sponge a absorb as much information as possible at this point.
I have extended family in Boston, but not a RE network.
@Virginia F. - I commend you on your willingness to take the leap and move toward you goal without letting anything get hold your back. I agree 100% with @James C. - focus in on building your network. As you progress you will find there are three key's to investing; Criteria, Terms, & Network - and your Network is what feeds you. Spend time contributing and providing value for those who are in the business in some fashion or another and never eat alone (also a good book!) before you know it, an opportunity will be staring at you. The knowledge you can learn as an agent out in the field will be irreplaceable - if your goal is to invest in income producing real estate, focus your efforts on assisting commercial buyers and sellers - perhaps ask for co-listings with an experienced partner as you start out. You'll be able to learn so much by helping others do exactly what you'd like to be doing yourself.
Good luck to you!
Couple your savings with a creative financing method (HELOC, Home Equity Loan, private money, etc.) for a down payment + closing costs. Analyze as many deals as possible and find one that cash flows that you can afford the DP for. Get the best deal under contract ASAP. Qualify yourself as a full time RE professional and collect the tax benefits from that as well (double since you are married if you file jointly). I fully recommend refinancing your primary residence or getting a home equity loan to start toward your first property. After a year (usually), you can do it again to expand your investment portfolio and work toward replacing your W2 income. Best of luck!
Thank you so much for the advice! I don't have a large RE network and realize that's a weakness. I'm glad that I have BP to grow that network and my real estate license accentuate the process.
Another piece of advice that stood out to me in your post is your recommendation to work with commercial real estate transactions. I didn't connect the dots before, but it's great advice especially since I want to get into income producing real estate. Are you in that line of work or have experience in the field? Whats the most effective way to look for experiences like that?
Thank you so much for the advice! I wish my husband and I had our first property already. We are currently looking for our first home right now--preferably a duplex so we can start house hacking. However, we are still in search of one that fits our budget. $30k down payment in our areas doesn't get much out here. Therefore, my plan was to submerge myself in real estate to learn as much as possible while earning capital to buy our first property. However, it'll be the first to admit that I have much to learn from others and am willing to take any advice given. If you have any other tips or recommendations to jumpstart my REI career, please let me know.!
I don't have anything to offer you except encouragement Virginia. I'm a new Bigger Pockets member and only an aspiring real estate investor right now. It sounds like you've educated yourself pretty well and if you don't have anything else, you've got moxie for quitting your job. Please keep posting your progress. I know I could use the inspiration. I'm rooting for you!
Thanks, Nathan. I don't have a choice, but to make things happen and to make it work now. It'll be an adventure.