Hello all. I am thinking about getting into REI. I have been sitting on the fence about it for several years now with a pretty hefty chunk of cash to play with and excellent credit. However I want to not jump in too fast. The main thing that has been holding me back is that. Recently I attended a seminar for a certain MLM based REI university which I won’t name now, and was completely turned off by them, but I realized through that intro that there is much to learn.
I plan to join and attend at least one local REI club, I found two of them here in Seattle through this website, so I will start there I guess.
However, what would you folks recommend as the best way to pro actively get educated about this business? I have significant capital to start out with if I want, so I don’t really need to mess around with building up from Zero, which it seems like a lot of the educational material out there is focused on that demographic. However, I’m not sure its so wise for me to jump head first into a commercial apartment building either on the other hand.
From what I have been gathering so far, it seems that the main thing I need to focus on is buy and rent strategies, focusing on finding and closing the deals, making sure I’m priced cash flow positive, finding the right management company to work with, arranging the right financing, issues related to setting up my business to avoid excessive taxation, etc…
What educational materials would come most recommended, for reasonable cost?
Slow down and put your money away for the time being. A little bit of time and money spent now will go a long way towards your profitable success later.
I think what first needs to be answered is what are your goals, and what strategies interest you? Learning one or two techniques and strategies at the outset is better than trying to know everything about real estate in a month. Take a course, buy a book, and start your journey.
For most beginners, I believe options and lease options are the wise approach. It’s low risk, and it’ll keep your money where it belongs: in your pocket. Good luck. :smile
It seems like you are on the same page as I am as far as getting started. The only book I have come across at the moment which has been a good intro is The ABCs of Real Estate by Rich Dad. I only would caution against the Rich Dad influence part of the book. Other than that, it is an excellent start to getting an idea of how it all works in regards to rental income.
I am looking for more resources on this subject myself so if you know, please be sure to let us know.
I think you answered your own question. Joining your local REIA is an excellent first move. However, the key to making that a successful step is to meet and make friends with the SUCCESSFUL investors in your area. If you are interested in rental properties, then you certainly would want to make friends with the successful landlords.
Starting a successful rental property business is not brain surgery, although the majority of people who start a rental property business fail in a short period of time. Like any other business, you need to learn the business; learn your market; develop a valid business plan; and then follow that plan.
I would strongly suggest starting with a few single family houses or a small apartment building before you jump into something bigger. There is a lot to learn and starting too big could be a big and costly mistake.
Thanks for the responses everyone. Any specific suggestions about books or other educational products that are good value? I have attended a couple intro seminars the past two weekends, and frankly I’m blown away by how expensive they are. However, they have opened my eyes already to some possibilities related to financing, asset protection, etc…that there are a lot of strategies I have no idea about yet.
I am also increasingly under the impression that a lot of the courses out there, especially these expensive ones, are particularly targeted towards individuals that don’t have any cash to get started and need to know all the “tricks” to get into the business. I, on the other hand, already have hundreds of thousands in cash to start out and just want to learn how to (a) protect myself (b) avoid taxes (c) and maximize the leverage of my position to grow my position the most. I’m getting the idea that a lot of the stuff they tend to teach in these courses is basically a waste of time and money for me to larn about.
One thing that is becoming very clear to me is that regardless of whether I want to get into short term investing, (ie, development) or long term buy and rent/lease strategies…one key to making it work is going to be about positioning myself to catch the good deals and be fully postured to jump on them immediately when they come up. I need to connect with all the right people I guess.
I am becoming more open minded to short term opportunities as well…as it seems that is a much faster way to build wealth, while rentals are a longer, slower approach, with HUGE wealth in the long run that way.