Where to begin? Brand new here and lots to consider

Question

Interested for 9 years, but just joined pro yesterday! Feeling a LITTLE overwhelmed but VERY excited about how MANY things there are to review. Not sure which strategy I want to do but I think ... fix and flip and also Rental income. Any advice, links to other posts, etc. welcomed - where should I start? Thank you all!!!

Dave Spooner · Answer

Hi Sandy! Congrats on joining! As I am sure you have figured out over the last couple weeks there are a lot of resources on BiggerPockets that can help you out. I have read a few books by Brandon Turner, that are really good. I would recommend Rental Property Investing and Managing Rental Properties to start out with. There is also a fix and flip guide that has some useful information. Otherwise you can find a lot of articles on managing rentals as well as fix and flip on the BiggerPockets blog, podcast, and webinars.

Podcast: https://www.biggerpockets.com/podcast

Webinar: https://www.biggerpockets.com/replay

Books: https://www.biggerpockets.com/store

Blog: https://www.biggerpockets.com/blog

Guides: https://www.biggerpockets.com/guides

Podcast: https://www.biggerpockets.com/podcastWebinar: https://www.biggerpockets.com/replayBooks: https://www.biggerpockets.com/store

Blog: https://www.biggerpockets.com/blog

Guides: https://www.biggerpockets.com/guides

Sandy Switzer · Answer

You guys are all amazing! I think I'm most interested in fix and flip plus rental for ongoing residual. I've floated across careers/jobs in new home construction (worked in the structural warranty side), fitness, and travel - I've always loved to learn and grow myself, but I have not built much for "retirement" (though not sure I will ever retire, I love entrepreneurship), was recently divorced and I'm around 40 - so I have a road ahead and all...so definitely want to grow some decent rental income within 10-15 years, but I was considering fix and flip for not only diversity, but it sounds like fix and flip might be a great way to get some capital, which I don't really have at this point. Currently, absorbing what I can. I may have a potential business partner to work with - someone who is better at cut and dry facts versus my creative vision. I know I need to focus to get started though. I'll continue reading, listening, and learning. :)

James G. · Answer

@Sandy Switzer it's all going to come down to what your ultimate goals are. Do you want long term wealth? Look into buy and hold real estate. Do you want quick money? Look into wholesaling. Do you want a big pay check? Look into fix and flipping. There is no "best" strategy when it comes to REI. The vehicle that you choose is going to come down to what you want out of life. Make sure to constantly educate yourself in whatever vehicle you decide to pursue!

Stephanie Simmons · Answer

Also understand the cash flow difference of flipping vs. rentals. I used flipping to build cash fast, but it doesn't have residual income or on-going appreciation.

I used flipping to build capital and then use the capital to buy rental properties. Also some properties are better rentals and some are better flips. One I am finishing up now is a better flip in my mind because I had to do a complete gut (seriously the only thing that didn't need repair was interior structure, foundation, and the pool). So I was going to spend ~$50k on the renovation and I could spend $5k more to double the size of the kitchen & put in stainless steel appliances and it would be the best property for the money in the neighborhood - but it wouldn't get me more rent (plus a pool is a liability nightmare in a B- neighborhood)

Good luck - those Podcasts listed earlier are awesome

Sandy Switzer · Answer

Thank you @Basit Siddiqi!

Basit Siddiqi · Answer

@Sandy SwitzerYou should define what is specifically that you want to do. Be very specific.I.E. I want to invest in buy and hold SFH's that range from $100,000 to $150,000 that are within a 20 mile radius of my college.Once you defined what you want to do - educate yourself as much as you can(books, podcasts, blog posts) until you feel comfortable to jump in.Stretching yourself too thin, especially when you start is not a good idea.

Sandy Switzer · Answer

Thank you very much! I'm doing a lot of listening, reading, and learning!

Guifre Mora · Answer

Sure, are you ready??Its a business, treat it like one.

Start by writing a detailed business plan. A-Z

Stick to the business plan. Set dates and actions.

Reading books or podcasts are not actions. That doesn't mean to avoid educate yourself. Don't get stuck in analysis paralysis. Know when enough books and podcasts are enough.

Set a due date for every event, action, etc ... Viewing actual properties is the kind of action you need to take.

Review financials -how much you can afford. Set a budget.

Know your numbers Low and high. How much risk can you tolerate? Learn the market you are going to invest in. What are you investing in? SFR, Multi fam, Fix and Flip Fix and hold.

Know how to analyze a deal. Know your numbers! Cash is King, the importance of cash flow in the overall fiscal health of a business.

Seek professional relationships, Lenders, CPA, Contractors, Wholesalers, Realtors you are going to need one sooner or later.

Know how to avoid snake oil salesman. There are plenty in this business.

• The Millionaire Real Estate Investor
• Rich Dad Poor Dad
• The Book on Rental Property Investing: How to Create Wealth and Passive
• 
• Bigger Pockets Podcast
• Think Realty Podcast

Where to begin? Brand new here and lots to consider

Where to begin? Brand new here and lots to consider

Most Popular Reply

8 Replies