First Steps of an Absolute Beginner
I am an absolute beginner.
Sure, I read Rich Dad, Poor Dad a decade ago, I played some Cashflow with a bunch of other people while we were sold real estate training courses by some guy in a polyester suit. I even almost bought and then actually bought an investment property.
It doesn't count.
The property is not in the US, still isn't built and most importantly I bought it almost entirely out of ignorance.
So, what do I have to offer seeing as I have been a member of Bigger Pockets for a whole 2 weeks? If there is one thing that has me completely convinced so far, it is the value of this community and the importance of giving back to it. What I can give back is to share my newbie point of view on learning about and starting real estate investing. Hopefully you'll find it interesting or at the least entertaining.
What do you want ?!
Everybody wants to get into real estate. Especially after binge watching some flipping show or after someone tells you how their tenants are paying for their mortgage. Very few do anything with this and most of those that do go back to their routines within a couple of weeks. Making changes to your life is difficult and changing your behavior even more so. I don't need any background in real estate to know that most times I've succeeded in changing things in my life I have done these two things:
1. Define, in writing, what I want to do and why I want to do this
2. Define measurable, short term goals to get you on the path of where you want to go.
Here it goes:
1. I want to buy and hold rental properties to increase my equity and create passive income. Eventually I want to do additional types of real estate deals to raise capital to invest in more rental properties. I want to do this to allow me to retire and to do so early, to allow me to work with my wife, to be able to chose to work for income rather than needing to do so.
2. Purchase and rent out a cash flowing, single family home in the next 6 months.
Clearly item #2 needs to be fleshed out and I will be spending the next couple of weeks working on the details for how reach that goal.
Comments (11)
great post!!, i too am i beginner and while i have the resolve to completely dive in and commit 1000%, it is an intimidating process, especially if you do not know where to begin? I know this question is asked often, in simple terms how can you acquire cash flow properties with no money or credit?
Joel Custodio, almost 11 years ago
That is very tough. There are enough people on BP who have done it so it isn't impossible. With my limited understanding, the only way you can ever do that is through building relationships. Start going to REIAs and local BP meetups, be active on BP, learn to speak the jargon so that you can get to a point where you can use someone else's credit and or money. You partner with someone that brings in what you have missing and you do all the work. But no-one is going to do that without have a relationship with you. Start by adding a picture to your profile. It makes you easier to relate to and easier to remember.
Bram Spiero, almost 11 years ago
I'm glad you enjoyed the post. I have never owned a GPS device and have no desire to own one. I don't own a smart phone either. I recall a field trip I went on with a partner to research a self storage facility. We arrived after closing but had a decent view of the facility from the gate. My friend looked up the facility on his smart phone and relayed the information that there were 4 buildings. I insisted there were 5. He showed me his phone which clearly showed the 4 buildings. I directed his gaze toward the compound and counted the 5 buildings with him.
Jeff Rabinowitz, almost 11 years ago
@Jeff Rabinowitz I often wonder about that. By nature I am neither a perfectionist nor incredibly detail oriented. Luckily other people are and when I work with them this leads to a balance that works for everyone. I do the fuzzy stuff that makes their skin crawl and they sweat the details that bore me after a while.
For now, at least, I am on my own and feel the need to compensate for my easy going nature. That and the fact that there is just so much basics that I have to learn before I can even decide "I don't need to bother about that."
I liked your post by the way. There is nothing I like more than turn off the GPS and seeing where the road takes me
Bram Spiero, almost 11 years ago
@Bram Spiero, good for you. Meticulous planning works for many people and if you think it will work for you then that is the way to go. It will not be the best way for everyone. I know it is not the best way for me. I would have missed opportunities had I followed strict planning. Freedom is the main reason I am an investor.
@Robert Blanchard , I agree with your meme. I have often seen it stated another way: If You Fail to Plan, You Plan to Fail. That is definitely not true. I disagree with that wording and posted a blog titled: I Fail to Plan! (http://www.biggerpockets.com/blogs/4527/blog_posts...) where I explain why.
There are many reasons why investors invest and many strategies to achieve what they seek. The first requirement is to take action and it looks like you are well on your way. I wish you success.
Jeff Rabinowitz, almost 11 years ago
Thank you @Robert Blanchard .
I agree with you about setting goals that stretch you. If you aim high and only reach half way that is still better than aiming low, reaching that and then having to ask yourself "is that it?".
I have found that when doing something new it's important for me to set short term goals I can reach relatively easily in order to build momentum.
Bram Spiero, almost 11 years ago
I used to have this in my office at my store:
People do not plan to fail, they fail to plan.
This can mean many different things. To me, it means that I should have goals written down and do enough planning for things so that the goals can be met.
Most people should have short, mid, and long term goals. Some people sandbag their goals so they will be able to meet all of them. I tend to do that at times. If you raise your goals to be higher, your level of success will be higher, even if you do not reach those goals as quick as you think you should or have put down on your list. I read somewhere, that if you do not do things that are out of your comfort zone, you will never reach the next level of success. For so many people a "conventional" Job does mean "Just Over Broke". If they go out on a limb and do some RE investments with a mentor or partner, they will then be one step closer to being able to do deals on their own. This then will mean that they will be one step closer to being more closer to being financially stable.
Robert Blanchard, almost 11 years ago
Thank you @Emily Du Plessis . That's why I'm so delighted with having found bigger pockets. It's holds such a wealth of information. As long as you know what to ask, I think you can find the answer to just about anything. I'm working on learning what to ask at the moment.
Bram Spiero, almost 11 years ago
Love this! You just have to jump right in. My biggest advice is to do your due diligence in researching the areas you want to invest, the local industries, and local tenant pools. I'm sure you've heard the saying "Knowledge is Power" however I believe in real estate investing, 'Knowledge is Protection'.
Happy Investing and Welcome!
Emily
Emily Du Plessis, almost 11 years ago
Newbies of the world unite!
Bram Spiero, almost 11 years ago
@Bram Spiero it is commendable just to start putting yourself out there. I am also totally new and feel I have little of consequence to say. Your post is encouraging- thanks!
Rachael Collins, almost 11 years ago