Hi everyone!
I’m new to the forum and was wondering if my “grand plan” for real estate investing is actually that grand.
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I am going to graduate this May with a B.S. in Finance…so I do know a thing or two about NPV, ROI, etc.
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I am planning on taking a course at the local Community College this summer on being a real estate agent in order to prepare myself for the Illinois Real Estate Agent exam
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Also planning on using my interest in finance and real estate to become a certified real estate appraiser (takes 1 1/2 years of being an apprentice to become one) in order to make a livable income and gain very useful skills in real estate valuation, etc.
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In the meantime, I plan on joining a real estate investment club and investing in mobile homes (if I’m a terrible investor with mobile homes then I figure I will never be good at multi-units!)
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Eventually invest in multi-units (3 or 4 units) in order to gain knowledge, experience, and equity.
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Long term goal: invest in commercial real estate (30-50 unit apartment units) after I have gained sufficient experience.
Does this sound like a good plan to the users on here that are experienced? I’m 22 and have $11,000 in debt (student loans). Does it sound like I’m being reasonable and conservative enough to actually have a chance at creating some good cash flow?
Thanks for all of your advice!!!
My thoughts- if you can get licensed both as a sales agent and an appraiser great, but don’t get spread too thin, if you’re going to make a living as an appraiser just stick to that to get yourself going and the sales license will always be there later (I’m licensed myself but theres tons of super successful investors who aren’t).
Second, why start in mobile homes? If large commercial multifamily are really your goal, my opinion is that you’ll pick up more valuable knowledge starting out in residential SFH than in mobilehomes.
Lastly, certainly do join your local REIA, network like hell, and read these forums!
You always have a chance at creating cash flow! I know people in much worse situations that’ve gotten out of it.
Start where you feel comfortable, and be focused! It’s REALLY easy to get distracted by, “OMG $30,000 A MONTH WITH WHOLESALING!!! DOING LIKE NOTHING AT STARBUCKS!” or “Rehabs, big $60,000 checks coming to your door MONTHLY!” “Multifamily Repositions $200,000+ wtfbbqsauce”. So just pick one, and drill it into your head and do it. You can make really good money doing any technique, if you feel mobile homes are right for you, absorb as much information as possible about it, and make a commitment to market, negotiate, and close on a deal.
That’s about where I’m at right now, so past that I can’t help you xD
But yes, go to your local REIA club, watch out for the Ego’s though, you’ll meet a few of them, but most are humble people.
I agree with JakeRodgers. I’m a certified commercial appraiser and I have a finance degree. Other than gaining familiarity with financial terms, your degree won’t help you as much as you might think. It helps to be able to use a financial calculator though. The HP-12C is kind of the industry standard in appraising. I would encourage you to pursue commercial appraising (bigger commitment but much more rewarding and challenging, and more money). If you want to get into apartments I would forget about mobile homes and focus on 1-4 unit properties. Honestly, I would forget about apartments and work toward buying actual commercial real estate (office, industrial, retail, special purpose). Everyone wants to buy apartments b/c they’re scared of commercial real estate or b/c they don’t understand it. Let me tell you, the commercial guys don’t work near as hard. That’s where you go to the ‘smarter not harder’ realm.
I would seriously consider becoming a commercial guy, whether appraising or investing…
Wow, thanks everyone for their invaluable information and insight.
Just curious though…since it seems that a couple of you are appraisers, do you find that it has greatly helped your real estate investing skills and is it a profitable (and livable) stream of income you do you have another job besides that?
Also, why do you think that a finance degree is not that helpful? Are you referring to the appraisal industry or the real estate investment industry?
Residential appraisers are hurting right now. Low fees that keep getting lower and a drop in demand is putting many out of business. The commercial side is less cyclical and the fees are $1500-$5000 as opposed to $150-$400 on the residential side. If you have the desire to learn and like the idea of every assignment being unique and challenging, you want to go commercial. The Appraiser Qualification Board recently increased the amount of education required for a Certified General License (commercial), so it’s good you have your degree. Check with your state commission for more info. It’s a big committment though, so you have to stay focused, but it pays off. You can make more on the commercial side. You also get exposure to many different types of properties, helping you decide which type of property you want to buy. During this time you also meet the big players and get to know who’s who.
Trust me, forget about the residential/apartment rat race and go commercial.
Interesting advice from Artyman.
What about buying an owner-occupied duplex as soon as you get your first (salaried) job? Do not forget the once-in-a-lifetime tax credit for first time buyers. It expires Dec. 2009. I would sure be looking to buying my own roof rather than paying rent now when it’s a buyer’s market AND you get government help.
I would shoot for a salaried job now, and expand into other real estate fields later.
Good luck, and let us know how it goes.
Furnishedowner
Make sure that you are interested and can concentrate in the field you choose.