Hello all! I’m sure someone has probably posted this exact same post many time in the past but I have been trying to get myself involved in real estate for about 2 years now. I live in Florida currently and all I ever get is advice from broke people who have no money telling me what to do with mine. I know someone who is currently doing rehabbing in Georgia and she told me about this website. I have been reading different topics in this forum and some of you seem like you know what your talking about.
I, unlike many people have some initial money (about 10k) to be exact to start off with. All I feel I need is someone who is honest and trustworthy to help me decide what niche I should enter to start making some good money within a 6-12 month period. I’m not trying to get rich doing this (it would be nice if it happened though)I just don’t want to have to work a 9-5 job anymore I’m sick of it and I have hated doing it from day one. All I want is to live comfortably and be able to buy something if I really want without having to “work for the mans” none of you know this but I’ve had a hard life as I’m sure many of you might have had and I really feel like SMART real estate investing is my escape from that.
With that being said I read these topics and I’m getting a lot of information but I still don’t know what would be the first thing I would do to get started. Now I know this may be asking alot but I someone with some success could take me under their wing so to speak and help me at least get started it would be greatly appreciated.
I guess I don’t understand your statement that you’ve been trying to get involved in real estate for 2 years. What does that mean? What effort have you expended so far to get started in REI? I guess I just don’t understand how you could spend 2 years trying to get started.
Real estate investing is not brain surgery. Simply decide what you want to do; learn the basics; and get started.
You said you don’t like working for the man and that you wanted to be told the truth. Well, here it is! Starting your own business is a LOT more work and a LOT more stress than working for the man. Business is all about survival of the fittest. The VAST MAJORITY of people who try to start any business fail in a short period of time, primarily because they didn’t understand cash flow issues. In REI, the gurus put out a bunch of hype, but conveniently omit the truth about the work involved; the expenses involved, etc.
You asked what the first thing you should do to get started. First, decide what area of real estate you’re interested in: rehabbing, wholesaling, operating rentals, etc. Second, study the basics of this area. Third, write a basic business plan that will take you from where you are now to where you want to be.
I agree with Mike. You could be going around in circles for even more than 2 years and ended nowhere. Real estate investing is a business itself. And it’s a very broad field too. You have to find your “niche” or the specific area you would like to concentrate your effort.
Another absolute reality that Mike mentioned is the “flowery stories” you heard, read and seen from the so-called “gurus”. Real estate is work, and you better be prepared for it.
There are going to be lots of sacrifices, and elbow greasing you will do along that route whenever you get your real estate investing in full swing.
At least with your initial $10k capital is something you could start with. Focus on what you want to do. Are you looking at starting with duplex unit, condos or even single family homes? Do you want to fix them up and then resell them or rent it out first?
Educating yourself (but don’t get too hung-up w/ it or else you’ll end up in nowhere land again) and then do it!
Build your circle of influences with the realtors, title companies, insurance agents, investors, appraisers, accountants and some handyman folks. If you’re thinking that you could real estate investing all by yourself, good luck! Real estate is a people’s business. The homes are just the front.
Initially I was going to invest into flipping homes with a friend of mine. Who had a connection with some contractors. Turns out the people where to scared to make the full investment we planned on and it ended my initial investments in real estate. It ended up being a waste of about a year of my time. then I had some deaths in my family (both parents in 2 years span) that just took a lot out of me. Anywayz I was thinking of getting started with rehabbing but I don’t know what area is the best place to do it in. I’m even willing to relocate in time. I got 10k to start off with.
I wouldn’t even know how to go about finding a good trustworthy partner everyone that I know has either bad credit or is broke or both. I would honestly go 50-50 with a good knowledgeable partner cause i really don’t know much at all about the business. The way I see it we are both in it together and I am not a selfish person.
Here’s the blunt truth. The problem is that no successful investor would want to partner with you. What do you have to offer? You have no money and bad credit. Credit is a measure of trust. You don’t know much at all about the business (your words). Why would a successful person want to partner with you?
You said that you have spent 2 years trying to get into REI, but you still don’t know much. Why not?
My point in this post is not to be cruel, but to show you that YOU MUST DO IT - YOU. YOU must study your area of interest until you understand it. YOU must fix your credit and earn some money. YOU must develop a business plan that will ensure success. YOU must put in the hard work to start your business. YOU are responsible for your success or failure. YOU!
It can sound harsh, but like PropertyManager said, he’s not being rude. It’s the truth. This is a business and it’s going to take educating yourself, money, and planning.
the only part of that trio I have is the money I guess. Should I use these forums to educate myself or are there some books I need to start reading? Any material to read you can recommend? Do I need to have a real estate license as well to get started?
Yes - you should use these forums to educate yourself. Yes - you should be reading books (all that you can get your hands on). You should also join your local REIA. There are a bunch of things that you need to do. However, the point is to DO SOMETHING! Today is almost over. What will you accomplish tomorrow (Friday)?
Ok, I have to chime in on this one. By no means am I an expert(yet) and I am still new to this, but learning everyday.
The one thing that Ive read over and over again is "you must take action" You must take that step foreward and don't give up. It can be frustrating, but the best way to combat that is education. Keep learning and at the same time move foreward with a plan of action. You will only get out of it, what you put into it.
Like Property Manager said, use this forum, and others, learn as much as you can, but don't get stuck just learning -Move foreward.
No,you don’t need a license but you do need to educate yourself. I would start with a book. I read a book called “the Millionarre Real Estate Investor”. It was written by Gary keller who owns Keller Williams Real Estate agency. You’re not done there. you need to learn from multiple sources and use your resources. The key to success is education and a little money. Don"t listen to the hipe on the internet or the scams. Don’t buy into the zero down scams, those are intrest only loans which hurt your wealth and equity. If you are buying a $100,000.00 property you need to put down $20,000. AND HAVE A RESERVE if it is not brand new with no repair costs. You still need to factor a 3 to 7 percent vacancy and other costs. I hope this helps.
I totally agree that you need to have reserves of credit or cash if you are going to run a business. However, you are absolutely wrong about needing to put down 20% on properties. If you are going to start a rental property business, how many properties are you going to be able to buy if you have to put down $20,000 on each one? The answer is that only the rich would be able to build a successful rental property business if $20,000 had to be put down on every deal.
Also, interest only loans have absolutely nothing to do with the amount of money you put down. I have purchased nearly all of my properties with no money out of my pocket (because I bought at a huge discount) and have never used an interest only mortgage. In fact, nearly all of my properties are fully amortized over 20 years.
The key to success is education and a little money.
I agree wholeheartedly with this statement. However, putting down 20% for each rental isn’t a little money, it’s a LOT OF MONEY.