What would you recommend me to do next?

Question

Hello everyone my name is Alejandro Escalante. Im 19 yrs old and I really want to focus my time in real estate investing. I love the idea of fix n flips and really want to get my first step into this career but I’m quite unsure of what I should do next or where I should start. I am from San Diego, CA and I would like to see what opportunities I can find. Thank you all for your time.

Nathan Gesner · Answer

I recommend you build a strong foundational understanding of real estate investing. 1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turneror The Unofficial Guide to Real Estate Investing by Spencer Strauss. 2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey. 3. As you read these books, watch the biggerpockets podcasts. This will help clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes. 4. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. Biggerpockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.5. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you. 6. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education. You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.

Ty Ash · Answer

Hi @Alejandro Escalante!I'd recommend that you keep/start learning! Podcasts, Books, and Mentors you find by networking. You're at a good age to work for someone else and start earning an income while learning from their business and experience in a field of your choice.I'd pick up a copy of Set for Life by Scott Trench as it has a good framework for financial independence, especially for a younger investor. Real Estate is just a part of your total financial picture so don't become too focused on just real estate. You'll want to learn more ways to increase your income in the future, keep your expenses low now, and take the difference to invest into assets, real estate/business.A house hack will probably be one of the best strategies for you to get started and take action while giving you a great return because of the low % down needed to get started. Once you get to this point make sure to run your numbers for both while living in the house hack (lowering your living expense to less than what it would be to rent in your area) and post move out where you need to be at least break even after accounting for your monthly payment + maintenance, capex, vacancy, property management.Best of luck getting started! Here for you with any questions you have along the way!

Joaquin Camarasa · Answer

I'll tell you what I would do with all I know now and assuming you have 0 experience.I am not by any means one of the super experienced guys in the game. However, 10 years ago I was your age with no money, no properties and living in a different country. Now, I own two, soon three. I have completed two househacks and two flips.This is what I would do: 1. Get a w2 job in which you make the most you can or a 1099 in which you make the most you can, for the later, they will ask you two years of tax returns and they will average to see how much you qualify for. Reduce your expenses as much as you can. 2. Once you get prequalified get a property within your range that allows you to have as many bedrooms as possible. Live in one rent the rest to off set the maximum amount of mortgage or potentially even make some money out of it after mortgage and expenses. Do this for a year or two.3. 4. Refinance first property and do a HELOC with the equity while is still your primary residence. By now, you'll be familiar with being a landlord and handling small repairs. By this time, you should have been able to save up. Get a fixer upper, fix it up and househack again. 5. Repeat and repeat until you accumulate enough equity and cashflow you have the freedom you are looking for.The only way I can see you speeding up the process a little is by working for a contractor or a construction company as you'll need less money to complete projects. if you have the patience and the skills to do it yourself. This was my path, based on where I was, I think is the most realistic and efficient when you do not come from money. You will hear people doing flips, etc. Its great to hear those things to motivate you, the reality, however is that you are going to have to make a bunch of sacrifices and do what others are not willing to do to get ahead and achieve your dreams. Stay disciplined! Best of luck with everything!

Craig Clinton · Answer

Welcome aboard.I would first figure out where you want to do your fix & flips and then study that market until you know it like the back of your hand. Study it by driving it, walking it, touring the inside of houses, and looking at recent sold data on Zillow. At the same time, I would start going to RE meetups. You'll learn a lot and meet knowledgeable and experienced people. Go to multiple meetups per week for 6 months and you'll eventually meet everyone that you need for a fix & flip project and learn what you need to know.Never stop learning and never stop networking.

Alejandro Escalante · Answer

Thanks for the advice and when can I go to those meets!

Joe Villeneuve · Answer

The turtle doesn't always win. The turtle thinks it does, because by the time it finishes, nobody else is around."The things that come to those who wait, are the things that are left behind, by those that got there first".

Eliott Elias · Answer

Build your network and make sure everyone in your market knows who you are. The turtle always wins, chase knowledge and relationships, not money

Dan H. · Answer

Flipping in San Diego requires a lot of capital. This likely means you need a partner. If you find a good RE flip property, you can find a partner. Wholesaling and bird dogging is not easy, but can provide a finders fee. I paid a $20k finders fee on a recent acquisition. I do not claim it is easy, but it is possible. At this point in your career development, your likely better choosing jobs by what you could expect to learn than by the pay. One of my handymen/protégés that I was a paying $25/hour 6 or 7 years ago is now a millionaire with 5 local properties. He was my best handyman, but he was also my best protege. Every time I gave him a task designed to be an educational experience, he eagerly did the task. He worked for me as much for the learning experience as the pay. Good luck

Joe Villeneuve · Answer

Before you just jump into the flames, you need to learn before you burn.

Jake Johnson · Answer

Start going to meetups in SD. Ask around and find people who do fix and flips, theres a bunch of them. Find out what there looking for and try to find them those deals in exchange you'll get all the advice and guidance you could ask for, and maybe a wholesale fee$! It cost nothing, gives you experience and builds your network. Let me know if you want to know the meets i go to!