First order of business, for a beginner, advice?

19 Replies

Brand new to bigger pockets and REI. I HAVE 8 potential deals (distressed properties) and I just don’t know what to do next. Everything resource I look into tells me something different. What was your first, second, and third steps...? How did you close?

Before trying to do any deals, educate yourself more. It's very exciting to think about doing real estate, but it's super easy to lose a lot of money if you don't know what you're doing!

Evaluate if the numbers work.  Put the deal under contract with the seller.  Market to find a buyer.  If it gets too complicated perhaps you may want to partner with an experienced wholesaler in the area and split the profits.  Doesn't have to be 50/50.  Do whatever works.  The knowledge that you get from working with someone experienced is valuable and can take years off of the learning curve.

If you're looking for any kind of detailed recommendations, you're going to have to provide a little more info. We know nothing about you other than you're new and looking at distressed property. 

What is your starting point for knowledge? Have you read a book or two?

How did you narrow down to 8 potential deals?

Where are the deals and what do the numbers look like?

What is your financial situation?

What are your goals?

On BP there are thousands of posts and hundreds of podcasts that will get you smart on investing. Maybe that is your next step.

@Tiffanie Willingham I have not started yet, but I am hustling right now to get myself deals. I just wanted to come on here and publicly say I do not like the negativity and rudeness I’m seeing here. It is uncalled for, immature, and innapropriate. This is a space for growing an learning. 🙄🙄. With that being said I would like to tell you to follow as many sources and successful people as you can.!

Two people have been rude. The rest have given you solid advice and asked you questions that will help you make decisions. If you don't know what to do next, it means you haven't figure out your goals. Are you looking to buy and hold? Flip? Wholesale? This isn't "negativity." This is the reality of REI.

@Nicole Heasley I definitely know how to weed out the negativity. Lots of people have given great advice. The potential deals I have are distressed property leads provided by an REA. I have analyzed the numbers using the calculator on this site and I have also reached out to several potential buyers. Over the next couple of days I will reach out to the sellers and make offers, get the properties under contract, and present the numbers to buyers. I’m not working alone of these deals anymore. I have spoken to several experienced wholesalers and flippers that are advising me along the way. I’m doing lots of research. I know there is lots to learn, but I prefer on the job training so I’m going for it while asking questions and learning along he way! Thanks for responding!

Increase your financial IQ and build your team (CPA, Lawyer, Investment Agent) while you look and analyze deals. Talk to investment agents to have them send you deals, start analyzing the deals doing your own number, talk to your CPA about your tax's and your Asset Protection Lawyer to get you set up to limit liability and exposure. If you don't have CPA and Lawyer, start asking for referrals. Best of luck. 

Wow.  Totally surprised at the response to what is a perfectly valid question.  Anyone who can say that the 8 possible deals are or are not legit doesn’t know wtf they are talking about becuase without looking at them, you can’t possibly know.  Maybe she has a realtor hookup, maybe she is just more of a hustler than the person complaining...maybe a lot of things....having said that, your next step is to put a or all of the properties under contract.  If they are not under contract, you are windowshopping not investing.  If you are looking to wholesale without a quality list, you are likely to be in for some real heartache.  If you have a list then hit it hard.  My biggest point of view on your initial message though is that it suggests to me that you have put the cart before the horse a bit.  “If you don’t know where you are going any road will get you there “.  If you had real clarity on what you were after, you would have more clarity on the next steps.  Good luck 

From years of experience, not in REI, but in online forums, skype chat rooms etc. Frequently the written word comes across as abrupt and rude when that was not the intent. Always remember there is no "tone of voice" or facial expression to read in posts, and perhaps give the poster a break. Most in here are here to either learn or help, usually both.

@Tiffanie Willingham - you have a very short time to edit, but to do so, there are 3 small dots in the upper right of your post.  

And Good Luck to you, you appear to really be hustling!  You go girl!