I am relatively new to the whole real estate game, and am trying to learn all I can from those who have walked the walk, like many of you have. I am currently starting to work with a couple REI mentors in my area, however both of them specialize in commercial properties and I am more interested in beginning with possible Tax Credit programs here in Texas and also learning about the developement process as a whole. I don’t have a real timeline at this point and currently have a good job in the health care field, but dream of running my own boat in real estate.
My question to you savvy investors/developers is how did you all begin in the business? I am more than willing to take a significant pay cut to get in the direct development game and pay my dues working for another developer or can I continue to learn on my own and use my current position to help fund my goals??? And concerning the Tax Credit programs, should I just make a trip to Austin and meet as many people who work in such programs to get a better feel for the ins and outs of the programs or maybe even contact some of the larger players in my area in person? I’m sure nobody wants to share all of their secrets, and I’m not looking for that, I just have a burning desire to get started and succeed in this realm of real estate.
PS Are there any books that any of you would recommend for helping with learning to read and understand market trends, individual market anaylsis, and feasability reports???
Stay in your job. Passive investments can earn you cash every month while you earn your current salary. After you build a significant portfolio, you can retire and just invest. Mr Trump.
I have limited knowledge in Tax Credits. But Multi-family investing is profitable and can be an easy cash flowing passive investment.
I also work in the healthcare field and I’m very happy to have a good paying job at this point where many are losing theirs. It also helps me to get financing. I’d suggest you stay at your job until its preventing your RE carreer from gowing further. Even then, you have to consider all the things your job provides ( income, health insurance, etc…) and be sure you can those from REI. You’ll need to provide income for financing from REI. Good luck.
This is an interesting question which I can really only answer from my perspective which is probable not the only answer.
Developemnt is multi faceted, you are probable considered a small developer if you build one new spec home per year and a lot of experienced investors probable possess the ability to do this.
If you buy a group of row houses (Two or more) in a urban city redevelopment zone and completely remodel them you probable would be considered a small developer.
Each of these scenerios are examples of small development and both probable very do able as an experienced investor but you probable don’t have very much of a staff and you are probable the only one who knows your running your own show.
I develop larger projects of track homes, condo’s and townhouse’s and have been undertaking projects from time to time for over 10 years.
However I have a professional background in Project Management / Construction Management and an established track record first in managing projects and bringing them in on time and under budget of projects in size upwards of twenty million.
I also owned and operated a successful construction company in the 90’s building new custom homes up to two million, rehabbing and remodeling apartment buildings upwards of 50 units and remodeled commercial properties and projects up to one million.
I was also raised in the real estate and construction industries as my mother was a very successful broker and my father was a successful real estate developer.
It is not so much the “Can you do it” as it is can you find and get the investment or financing money? I can mostly finance my 20 or 30% stake in a development and get private money funds for the balances.
But these people are interested in my background and track record to approve a project, and that is very difficult to obtain in a few years, this amounts to a life time of success and hard work and choosing to start in the right carreer field.
I have 30 years of experience and track record this year.
I appreciate the information and I understand what you are saying. My father and family friends are rather large real estate brokers and I am fortunate enough to know many people who are interested and capable of investing in real estate. I have gotten the go ahead from several already successful investors who are willing to let me put in the sweat equity for a piece of the pie.
Personally, I know that I am going to have to work very hard to be a success in such a complex field, but I have no doubt that I will do just that. That complexity is what really appeals to me in every way.
Since my last post I have spoken with several local officials and banks to let them get to know me and let them know that I am planning on working with everyone in the future to help better the quality of lives of people in the area.
I guess I didn’t really explain myself previously, I am going to focus on lower income housing and trying to rebuild some of the older and more “weathered” portions of my town in east Texas.
If anyone has any experience in helping make a difference in the quality of life and trying to make a decent income I would greatly appreciate any and all information.
Thanks to everyone who has helped!!! It is great to have such a great tool such as REI.