I am just wondering what everyone thinks constitutes a “Newbie”? Is it someone who hasn’t done many deals? Is it someone who hasn’t been in business very long?
Here’s my opinion. Statistically, the VAST majority of investors never do more than 5 deals. So, for merchandisers, I’d say that someone who hasn’t done more than 5 deals is a newbie.
For landlords, I’d use a rental-years computation. Just like man-hours is calculated for labor related jobs, rental-years would be calculated by multiplying the number of rentals that you have by the number of years you’ve had them. In my opinion, anyone with less than 50 rental-years of experience is a “Newbie”.
Mike, I don’t think there can be a formula. And people also learn at different paces. Also, those who surround themselves with other investers will pick up much more experience than those who don’t, because they will learn through the experiences of others.
interesting question - why are you trying to figure this out?
are you just curious?
are you a newb by your definition?
i consider a “newb” - someone who has absolutely no idea about business or investments. there’s different levels of noobs too - really, in everything, think about it.
you could be, let’s say, great at anything, but when someone shows you something new or a different technique or skill or secret, well then, you’re a noob.
i think considering anyone who does not have an understanding of simple financial data, both personal and business and don’t understand how interest is accrued and paid on a loan, or doesn’t understand simple terms of business or rei and does not know the rules and regulations of business entities and real estate in the most simple ways - that’s a noob.
Hello everyone,
I am a proud newbie, i know nothing about the business but I’m excited as hell to get in! The only problem is that i have no idea how to get started. There is so many real estate “gurus” that claim that their system is the best system and they all cost thousands of dollars I don’t know what to think. I have been giving some of those couching classes some serious thought, but i am as sckeptical as they come, I know that the bigger the investment the bigger the return, but does it really take 15k to get decent advise? Does anyone know a different way to do this? I would love to pick anyone’s brain if ya’ll let me. I’m also studying for my real estate licence, I figure if I have as much access to the insiders of this business I may learn something. I anyone can get back with me I’ll appreciate it more than you know.
Leticia
I’ve never owned a piece of property so I guess I’m a newbie.
But a seasoned newbie.
Started reading about REI about a year ago.
My plan calls for relocation which should be happening pretty soon…so that’s a big reason why I haven’t taken the plunge yet.
And I’m glad I’ve had this amount of time.
I’m not the most voracious reader and while I’ve read quite a bit this past year…and frequented these forums quite a bit…my preparations on knowing how to buy have only recently gotten to a point where I think I might have a half-way decent chance of buying right.
I have no clue as to how I’ll do as a landlord and if I’ll like it but I’m very cognizant of the financial leverage it can provide.
I have run a part-time construction business for 10 years and if I was just coming straight from a 9 to 5 employee perspective…yikes.
It’s definately a different breed being self-sufficient.
My stab in the dark is maybe 5 to 10 deals and 2 to 3 years of landlording. If I’m not out of the woods by that point you better call in the dogs.
My suggestion would be to not think that paying these sums of thousands of dollars is going to “make” it happen for you.
I’ve expended very little money in the year I’ve been interested in REI.
Public library systems offer you a multitude of perspectives from different authors.
Mesh these with “live” thought from investors on REI forum websites like this…and after 6 months or so…things should come together.
You might be pulling your hair out before that…but my experience has been that exposure to a multitude of info sources only helps to solidy your own plan. I wouldn’t just rely on 1 guru’s system.
On the left hand side of this website, under Investor Resources, is a link to a list of Real Estate Clubs. I highly recommend looking for an REI club in your area where you can meet, network with and learn from other investors.
I often hear and read newbies say they have no idea where to start. Certainly, there is a lot of information out there to decipher, however, my suggestion is that YOU first have to find something that fits your style, and then just learn all you can and try it.
What I mean is, if you are not handy or have no idea what general home repairs cost, you may want to avoid rehabbing. If you are not good with numbers, you may want to avoid note-brokering. If you don’t want to have to pack heat to collect rent, stay out of the inner city (or make sure you get a prop mgr.). If you think trying to buy a house for a deep discount from a home-owner in foreclosure is reprehensible, don’t do pre-foreclosures. You get the idea…
Once you decide, then you can learn more specifics. Once you learn more specifics, you can ask more educated and precise questions. Then, your learning will snow-ball and before you know it, you will be helping newbies yourself.
Hope that helps get you pointed in the right direction.
I would NOT spend thousands on any course, mentoring, coaching, or bootcamps. I would recommend starting with the Carleton Sheets course and then reading every book in sight on REI. Just remember that many of the gurus overestimate the profits and far underestimate the expenses. They either do this because they don’t know the truth or they want to sell you expensive bootcamps and mentoring (I haven’t determined which yet). In either case, their techniques are correct but the numbers are almost always wrong.
Simultaneously, join your local REI club and start meeting with some of the SUCCESSFUL INVESTORS. Notice that meeting the successful investors in your area is the key. Many newbies hang around with other newbies at their local REI Association meetings and thus don’t learn anything - BIG MISTAKE. Many seasoned investors will be glad to help you and you’ll learn alot just from listening to them. When I first joined my local REI club, I learned things about landlording that I would never have gotten from any other source.
Thank you all for the feedback. I will take everyones advise and run with it. As a matter of fact, I read the chat w/ William Tingle on Subject to (sub2’s). It sounds very interesting. Has anyone tried this type of investment before? Mike, you mentioned to start with the Carleton Sheets course? Is that something I can obtain on this website?
Again, thank you all for the helpfull advise.
Leticia