Brand New Real Estate Investor- Any Good Advice?

Hello all,

My name is Ed and I have been a member for a short time and I really like this site as well as REI. I am now ready to move forward with it. Everyone here seems to really down to earth and very knowledgeable about what you do.

I am Brand New in REI and I just bought 2 properties (One will be section 8 and the other already has tenants). I will be closing on the 2nd deal this week but I guess my question is, does anyone have any beginners advice on what to do and what not to do?

I have been reading like crazy and I went in to the first deal knowing a little something about what was going on but beginners need to listen to others that have been in the game and experienced mistakes so I am hear to listen.

If you have any helpful advice for a beginner please feel free to leave some.

Read, study, rinse and repeat (often and lots!)…

Read everything on this site. Ask questions if something doesn’t make sense to you…

Did you have a specific area that you needed advice on?

In general:

(1) Use your common sense…it will keep you out of about 70% of your troubles.

(2) If it smells bad, don’t eat it…oops, I mean don’t buy it.

(3) BE HONEST IN ALL YOUR DEALINGS – treat others as you would want them to treat you – trust me it will pay 10-fold dividends.

(4) Help other REIs

(5) Read, study, read, study, read, study…then do it some more. If your “significant other” doesn’t complain about all of the real estate books, you’r enot reading enough (or you’re a neat freak)…

(6) Know your target areas – know them cold. You won’t know a bargain if you can’t recognize one.

(7) ALWAYS, ALWAYS, ALWAYS cashflow…otherwise, it’s speculation.

(8) Read, study…

(9) Be nice to the NooBies.

(10) Give back to the community when and where you can (this community and your home community, too)

(11) Get to know others in the field in your area…RE professionals, closing agents, lenders, jobbers, construction guys, etc. Pick their brains…ask them questions, they will give you straight answers.

(12) Read, study…

(13) Know the rules. I am in Louisiana…apparently, our rules are printed on stone tablets in French. Know the rules and ‘customs’ in your area

(14) You can’t make a deal if you don’t make an offer. If the owner doesn’t like it, he will (a) laugh, (b) say no, (c) counter and the game is on.

I’m sure others will add…

Oh yeah – (15) HAVE FUN!!!

BTW – did I mention that you should read an study? LOL

Good luck!



Golf Clap 8)

That is a very good response. Everything you said has answered a lot of my questions. Thank you for taking time out to respond. My feet are now wet and I’ve got the feeling it will rise quickly…I just want to be ready and you have answered a lot.

I know I will have more specific questions as situations a rise but I am motivated and ready to work. My wife and I are getting into this and she is the one that got me all into REI and all excited.

Hope to meet some good people here and network a little and learn more.

Alright Keith I’m on my way to do some reading, lol. Thanks again.

This really applies to any business but keep every biz card you get. I recommend getting contact management software and make entries for everyone you meet. Keep solid notes. Things you remember today will be hard 1 year from now.

I tend to be lax, but I like keeping tabs on conversations I had with people, what they were about, etc.

Good advice evergreen. Thanks for the reply.

What a great list Keith!

Evergreen is so right about keeping all your contacts – I wasn’t as organized as I wanted to be, and found myself shuffling through tons of cards/notes. I finally stopped everything and got organized. You will find yourself referring back all the time as you move through this process.

I have one more to add: Don’t be afraid to walk away before you close. If you get yourself into a situation and then realize it’s not going to be what you want/can do, it’s better to walk and lose your earnest money than to get yourself into a lose-lose situation.

All of my offers have an addendum included – which basically gives me a way out for seven days with a return of my earnest money. My addendum states: Buyer has seven days to have the house inspected by an inspector of the Buyer’s choice. If, in the sole opinion of the Inspector, the inspection reveals conditions or defects that are unacceptable to the Inspector, then Buyer may, at its option, terminate this agreement by written notice to Seller, in which case all earnest money shall be returned to Buyer. My addendum replaces the Inspection clause in a standard RE contract.

Any seller who rejects my contract based on my addendum – I wouldn’t want to do business with anyway.

Get back to your reading :slight_smile: And, good luck to you!!

I like the fact that you have an addendum in your offers. That is very helpful info. Thanks Tami!