I’m pretty new to the area of REI and I’d love some thoughts, comments, etc. on my tentative plans
I’m an undergrad student in the DC metro area and as it seems to me (maybe I’m wrong about this) that I’ve got long term goals opposed to goals I can accomplish in the near future (next few years/while I’m in undergrad) feel free to correct me if I’m wrong or PM me with more specific things but here goes
After reading around on the internet, these threads, and NI it seems that my interest is in investing in multi-family properties. Something that interests me is being an owner occupant after working for a couple years after school…for now I’d love to learn more about flipping properties and lease options with the intention of trying my hand at these before I try anything with multi-family properties. It seems that the ideal way to learn about these is finding a mentor in my area and learning from him/her. After looking at a few websites of REIAs in the area, I’m somewhat skeptical of what they have to offer. How can I go about finding a reliable source of information on these organizations? Or is it best to pay and attend a meeting and take it from there without asking questions? Somehow I’m doubtful about the latter of those two…
Also, given that I’m a student (in my freshman year) is it feasible to consider LO’s and flipping property before I graduate or will I likely need more money(among other things) than I’ll be able to earn/save while I’m a student? I have money saved from past jobs; however, I’m not sure it’ll get me too far.
I understand that this is a somewhat vague series of questions but this forum seems to do a great job of answering all sorts of questions and I figure I’ve got nothing to lose by posting. I appreciate any constructive feedback you guys can offer
Hi,
I’d like to suggest first that you not be too skeptical of involvement in REIAS. Its been my experience that they often are the best for newbies. The amount of money you spend for membership or the meetings will be well spent if you approach with the attitude that you’re seeking guidance, help and a willingness to learn. Most REIAs have seasoned investors from whom you can learn, investors with money to buy properties, but not a lot of time for research,etc., so you could learn and become a bird dog for them so to speak and find the deals and participate in the profits. A REIA is also a good place to find a mentor who can teach you just the thing you say you want to learn. Go and check a couple of them out. Introduce yourself and network the group.
If you go with an open mind and a willingness to learn you’ll be surprised at what will happen. I’ve been involved in REIA’s for years and have learned a lot, found lots of money to help with deals, made friends and investment partners that created good deals…etc. I’m a practicing real estate attorney and real estate broker and while there may be some REIAS that aren’t that great, for the most part you will be ahead of the game participating in a REIA than not.
Don’t mean to be preachy but thought I’d give you my opinion. Hope it helps.
tcs, I’m not a big fan of real estate clubs. They’re money making machines for the owners, as they bring in speakers of the month each and every month, who peddle their mostly overpriced crap to the new members, (like you), in the audience. So I say, buyer beware.
I think you need to focus on one strategy for the time being. Flipping or assigning lease options, what are known as Cooperative Assignments, is the best way to go for the n00b. Low risk, low capital requirements, and fairly easy to understand. That’s your best approach, in my opinion.
And, yeah, you can start now rather than wait four long years until you graduate. In that time you can gain a wealth of experience and some substantial cash. Again, you do not need gobs of cash to get started, if you know what you’re doing.
Good luck.
Thank you both for responding. I think my skepticism about REIA’s is based on just about everything AJ290 said, however, I appreciate the points you (renegaderealtor) make about these clubs. It seems that they definitely have their merits but that I’ll need to figure that out on my own time and then introduce myself and network when I’m ready to try out some meetings that don’t seem bent on selling me information about aspects of REI I’m not interested in.
That being said…is birddogging another good place to start? Or is it overrated and over hyped on the internet? In all honesty, I had never heard of bird dogging or lease options before this week so I’m trying to avoid learning a little about lots of stuff and then never really “getting it” about one single thing. It seems my best course of action would be take one of these, (bird dogging, flipping, or LO’s) focus strictly on it, and use it to familiarize myself with REI.
I’ve got a few questions about bird dogging because it appears to be the best option for me from where I’m standing. It seems to me that it’s a matter of finding an investor, finding the deal they’re looking for, and getting that deal to them. I know that’s super simplistic but that’s my general understanding (correct me if I’m wrong, please)
- How does one go about spotting deals? I imagine this could be an entire discussion on its own so feel free to refer me elsewhere if there’s reliable information about this on the web.
- How does someone in my position (no experience, student with minimal understanding of the subject matter but a good attitude and the will to work/learn) go about finding/approaching an investor when I’m confident that I can actually spot deals/know where to look for them?
Thanks again for sticking with me. I look forward to hearing any solid advice I can get.
I think birddogging is a great way to get started and even earn some money right away. Call the We Buy Houses signs you see from time to time and ask them would they like you to find them leads. Or go to a REIA meeting and get biz cards from people who are actually doing deals. Then just find what they say they are looking for. This will usually be vacant/abandoned houses within a certain geographic area.
HERE’S THE KEY with birddogging: get a course that focuses on whatever you’re looking to do within Real Estate, and listen to the CDs/MP3s ad infinitum while you’re riding around birddogging. Completely immerse yourself in the course. Otherwise, birddogging by itself won’t teach you very much.
This is almost exactly how I got started…except I was birddogging for myself. I can almost recite verbatim every word of some of my early courses and I haven’t listened to them in 6-7 years. I wore em out. I still listen to REI/personal finance/self improvement stuff every time I drive. Rarely ever do I listen to music.
Bird dogging is one technique you can concentrate on to get started. It is time consuming and can be frustrating and expensive because it requires lots of driving around gas guzzling) and searching for properties. However it’s one of the most effective ways to get started because you learn neighborhoods that have hot properties and the areas to stay away from. Birddogging or “ant farming” as its also called, without having a system is an exercise in futility. I’d find someone to bird dog for first. That’s the reason I suggest getting involved in a decent REIA. Find a serious investor that can perform and close deals. Develop a relationship with the investor and find out the criteria he/she looks for in a property. Get an agreement on how you will be paid and then take action to perform. You can do this and still not have spent any significant money so you won’t be taking a chance on losing money on courses that don’t work or REIA’s that don’t perform for you.
Go the library and get a book on how to select properties for sale for flipping or wholesaling. There should be a form that you can copy and use to fill in information on properties you find during your bird dog search. One book authored by Ron LeGrand is called “Quick Turn Real Estate Profits”. This can get you off to a good start. Good Luck