I am relocating from the NYC area to Austin in January. I have about $60,000 in cash which I can to invest in real estate.
This is all new to me, but I want to get started in REI, but in the NYC area prices are just out of control.
How can I get started. Unfortunately, I am not working at the present time because I am completing last semester of graduate school for a MS in Finance, but I plan on using about $10,000 for living expenses until I get settled.
I also passed the Real Estate Sales exam in NY.
Would really love to get into Real Estate full time even if it means taking a financial hit for six months. My background is in Accounting in Financial services, but the idea of going to work in another corporate environment in NYC is sickening to put it truthfully.
no your not crazy. if you a have plan follow it throught. passing
the exam in ny won,t do you any good in austin. you,ll have
to pass it there also. joining the REI club Asap would be a
good way to get started. good luck
That’s a pretty tough plan. Real estate investing and brokerage both involve networking and marketing. With a new job and no previous steady pay for the past 2 years, it may be tough getting a loan unless you’re working with a private investor. Usually, a private investor will loan up to 65%-70 ARV, which is tough to find in Austin.
MLS fees are $1200/year. I spent about $2k on extra classes my first year since you don’t learn anything in real estate school. Each broker has a monthly fee. Lockboxes are $100 each. Signs are 50 bucks each. Marketing will usually be at least a few hundred or thousand each month. Networking expenses may be few hundred each month. You’ll also need a good cell phone plan that has at least 1000 minutes. Business cards, website, flyers or brochure templates, buyer and seller packets, etc. are also needed.
Basically, you’d be starting a new business, so need a solid business plan, even if a large part of it pertains to investing. Know how many people you need to talk to, how many deals you need to do, who your target market is, what makes you unique, how much you’re going to charge, etc.
If you just want to do real estate here and there and “wing it” you can, but you may find yourself as one of the 80% of agents who leave the business. “Millionaire Real Estate Agent” by Gary Keller is a good resource, not because I work for Keller Williams, but because it teaches you systems for becoming successful. “21 Things I Wish My Broker Had Told Me” was also good.
Hello, Dee makes a good point.
First, a private money investor may be your best choice for funding. Do you know where your credit score is at?
Second, being without steady income may be a problem.
Third, you will want to join a REI club in the area to help you learn the market quickly.
Then, after all this, you need to do the research on every project that you do. Your numbers will need to make sense. After that, just do it. Take action.
Good luck, I wish you the best. Any luck finding a REI club in Austin? I guess you’re not moving until January. Does anyone know if the club or another REI club is available? I’ll be in town, and would like to attend. I emailed the former president and he said the club folded some time ago.
The ones listed in this forum are all active. The “Real Estate Networking Club”, “Real Etate Investment Club”, and Wealth Builders are all still meeting every month.