New to real estate investing/intro

Member since 2022 · 5 posts · 3 votes

Hey everyone I'm Pat and new to the forum. I am 25, married, and live in Florida. As the title says, I'm new to real estate. I just started reading "Rich Dad Poor Dad" and have been skimming through the forums here to try and get some pointers for a newbie. I think my biggest worry so far is how my family will take me expressing interest in this type of investment. How were you able to explain to those close to you that this was a risk worth taking? I don't want to get discouraged and miss out on a world of opportunity. My long term goals are to first buy a house as a primary residence then rent that and then rent out either a duplex, triplex, etc. and go from there. I am working on saving for a down payment on a house now and don't plan to buy for another 3-4 years which should get me to around 20% down. I also have access to a VA loan so even if I don't make 20% it won't be the end of the world. I look forward to chatting with you all and if you have any advice I am all ears!

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Tim Johnson

Real Estate Agent · Skagit Valley, WA · Member since 2021 · 256 posts · 283 votes

Welcome to the forums Patrick. Why not consider taking your VA loan at 0% down, or an FHA loan at 3.5%, or a conventional loan at 5% or 10% down? Then you could get started a bit quicker.... time is money......best wishes....

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Tim Johnson
Real Estate Agent · Skagit Valley, WA · Member since 2021 · 256 posts · 283 votes
4y
Welcome to the forums Patrick. Why not consider taking your VA loan at 0% down, or an FHA loan at 3.5%, or a conventional loan at 5% or 10% down? Then you could get started a bit quicker.... time is money......best wishes....
1 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
Quote from @Patrick Megill:

Hey everyone I'm Pat and new to the forum. I am 25, married, and live in Florida. As the title says, I'm new to real estate. I just started reading "Rich Dad Poor Dad" and have been skimming through the forums here to try and get some pointers for a newbie. I think my biggest worry so far is how my family will take me expressing interest in this type of investment. How were you able to explain to those close to you that this was a risk worth taking? I don't want to get discouraged and miss out on a world of opportunity. My long term goals are to first buy a house as a primary residence then rent that and then rent out either a duplex, triplex, etc. and go from there. I am working on saving for a down payment on a house now and don't plan to buy for another 3-4 years which should get me to around 20% down. I also have access to a VA loan so even if I don't make 20% it won't be the end of the world. I look forward to chatting with you all and if you have any advice I am all ears!

Welcome to BiggerPockets!
Forums are full of information, but it's hard to sift through when you don't have a good foundational understanding of real estate investing. I recommend you read a few books on general real estate investing. Learn the language, what makes a good investment, how to finance, how to scale, how to manage. Books will give you 80% of what you need/want to know, then you can come to the forums armed with questions to refine your knowledge as you go/grow.
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.
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1 Reply
Joshua MessingerBusiness Member
Property Manager · Poconos, PA · Member since 2020 · 443 posts · 264 votes
4y
Hey @Patrick Megill!
I would utilize your VA loan to save time and money. If you don't end up going that route you of course have your other options going with FHA, or the conventional route.
As goes for your family I would explain to them that historically Real Estate has been the safest asset to put your money into. Either way, don't go off someone's opinion if they haven't done something for themself. Focus on the opinions you get from professionals/people who have done what you want to do and you will get the right advice/knowledge.
If you have any other questions please don't hesitate to reach out!
Live free,
Josh
[email protected]484-986-5012
0 Reply
Danny Mak
Real Estate Agent · Los Angeles, CA · Member since 2020 · 54 posts · 17 votes
4y
Welcome @Patrick Megill,
I recommend sitting down with your family and communicating it as best as possible. There may be pushback, but as long as you communicate that you're willing to take the risk!
Investing in real estate is absolutely a great decision. You should for certain utilize your VA loan! The best way for you to get started would be to purchase a duplex, or if your partner is comfortable, a four bedroom home and rent out one of the bedrooms. The VA loan will help you get into a home for 0% down and only about 2% of the purchase price in closing costs. That is an INCREDIBLE program and you should do that!
I have helped many VA clients in the past find their property and I know people who can help you too. Please don't hesitate to reach out!
0 Reply
Carissa Trent
Real Estate Agent · Nashville, TN · Member since 2022 · 20 posts · 9 votes
4y
Welcome @Patrick Megill

I agree with the majority and take advantage of the VA loan. It will save you time and time is money! It will allow you to maximize your opportunities much faster. Look into house hacking as you start up using your VA or FHA to purchase a duplex or triplex, which will fast-track you exponentially! I know many "newbie" investors here in TN that started their journey using house hacks!

As far as your family goes, explain your reasons and your excitement will be contagious! Historically, it has been proven that Real Estate is a safe investment opportunity compared to other investment markets. Keep reading and pushing through! You will do great!
0 Reply
Patrick Megill
OP
Member since 2022 · 5 posts · 3 votes
4y
Quote from @Tim Johnson:

Welcome to the forums Patrick. Why not consider taking your VA loan at 0% down, or an FHA loan at 3.5%, or a conventional loan at 5% or 10% down? Then you could get started a bit quicker.... time is money......best wishes....

I am definitely considering using the VA loan. The only thing I would try and do is save at least a little to reduce the funding fee. Thank you for the advice!!
0 Reply
Patrick Megill
OP
Member since 2022 · 5 posts · 3 votes
4y
Quote from @Nathan Gesner:

Quote from @Patrick Megill:

Hey everyone I'm Pat and new to the forum. I am 25, married, and live in Florida. As the title says, I'm new to real estate. I just started reading "Rich Dad Poor Dad" and have been skimming through the forums here to try and get some pointers for a newbie. I think my biggest worry so far is how my family will take me expressing interest in this type of investment. How were you able to explain to those close to you that this was a risk worth taking? I don't want to get discouraged and miss out on a world of opportunity. My long term goals are to first buy a house as a primary residence then rent that and then rent out either a duplex, triplex, etc. and go from there. I am working on saving for a down payment on a house now and don't plan to buy for another 3-4 years which should get me to around 20% down. I also have access to a VA loan so even if I don't make 20% it won't be the end of the world. I look forward to chatting with you all and if you have any advice I am all ears!

Welcome to BiggerPockets!
Forums are full of information, but it's hard to sift through when you don't have a good foundational understanding of real estate investing. I recommend you read a few books on general real estate investing. Learn the language, what makes a good investment, how to finance, how to scale, how to manage. Books will give you 80% of what you need/want to know, then you can come to the forums armed with questions to refine your knowledge as you go/grow.
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.
Thank you! I am working on getting finances together now. Fortunately, there isn't much in the way of debts so I am trying to save as much as I can. I appreciate the info!
0 Reply
Benjamin AakerPro Member
Rental Property Investor · Brandon, SD · Member since 2015 · 1k+ posts · 1k+ votes
4y
I strongly suggest using your VA loan to buy a 4-plex and live in one unit, the house hack. This is a fantastic way to get into real estate investing and usually only works for those just starting out. This is a great forum to learn how to do this. Let me know if you want more info on how to do it.
0 Reply
Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
4y
Two things about your family. The first is- it doesn't really matter how they take it. Even if they take it poorly, it's more of a situation that is then on you, whether you can proceed despite their objections. If you can't, that's what you need to work on. Trying to change them is a much less efficient route to take. With that said though, the best explanation you can give them is the same explanation you are giving yourself as to why you should proceed with REI. If you aren't clear enough on exactly why you're doing it to be able to explain it to them, you aren't clear enough on it within yourself and you may want to clarify that. We all know generic reasons why it's good to invest in REI, but what are the deeper reasons and more thought-out reasons? Part of that answer is likely going to be in understanding the numbers, how you plan to profit with a certain property type or strategy, etc. When you can give uncontestable information as your explanation on why you feel good about moving forward, you're a) more likely to succeed yourself and b) going to be less dependent on other people's opinions.
As far as buying a primary and turning it into a rental in a few years, just make sure you understand all the numbers so that when you do turn it into a rental, it can actually be profitable. Especially if you do loans under 20% down and end up with PMI, that's an even bigger hit. So make sure you know what you're doing there, but you definitely have time to figure that one out.
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Patrick Megill
OP
Member since 2022 · 5 posts · 3 votes
4y
@Benjamin Aaker Thank you! If I was a little younger starting out I would definitely look into house hacking but both my wife and I would like to have a little more privacy. With that being said, it does seem like the best way to start out in real estate. I am considering purchasing a house off market that may need a little work for the time being to keep costs low and eventually increase the value of the home once its fixed up. Toughest part is finding said house. I did a little drive around the neighborhood I would be looking to buy in but there wasn't anything listed for sale that wasn't already on the MLS. The search continues...
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Patrick Megill
OP
Member since 2022 · 5 posts · 3 votes
4y
@Ali Boone Thanks for the help. I spoke to my wife about it and she seems to be on board so now I am just studying and running numbers on example properties while building up my savings!
1 Reply
Bradley Dosch
Real Estate Agent · Seattle, WA · Member since 2019 · 301 posts · 188 votes
4y
Hey Patrick, great post and welcome to BP. In regards to people in your life caring about this - first off, doesn't really matter. It's your life and you gotta make your own decisions. I've found that people will learn to respect your decisions if you consistently do them confidently. Also house hacking is super cool and I don't think anyone will judge you for it - none of my loved ones looked negatively upon it. It can be super debilitating when I'm worried what other people think so I make it priority not to focus on that.
Using a VA loan to buy a house hack is an excellent move! I would certainly do this and then try to move into the next house hack as soon as possible rather than waiting 3-4 years. But of course this is your life and you gotta make the decisions that best fit your goals and lifestyle! Thanks a lot for the post Patrick best of luck!
1 Reply
Zierry Eme Carl T. Tagbas
Realtor · Spokane, WA · Member since 2020 · 138 posts · 87 votes
4y
Quote from @Patrick Megill:

Hey everyone I'm Pat and new to the forum. I am 25, married, and live in Florida. As the title says, I'm new to real estate. I just started reading "Rich Dad Poor Dad" and have been skimming through the forums here to try and get some pointers for a newbie. I think my biggest worry so far is how my family will take me expressing interest in this type of investment. How were you able to explain to those close to you that this was a risk worth taking? I don't want to get discouraged and miss out on a world of opportunity. My long term goals are to first buy a house as a primary residence then rent that and then rent out either a duplex, triplex, etc. and go from there. I am working on saving for a down payment on a house now and don't plan to buy for another 3-4 years which should get me to around 20% down. I also have access to a VA loan so even if I don't make 20% it won't be the end of the world. I look forward to chatting with you all and if you have any advice I am all ears!

Welcome to BP Patrick! It is always exciting when new folks come in the platform! I would totally utilize that VA loan if you are granted to it! Definitely talk to your lender too because with VA loan, you can purchase a property that has up to 4 unit, which then give you the opportunity to do house hacking (living on one side and renting the others). Then later you can do the BRRRR method, which David Greene has a great book for it that explains the steps TOTALLY RECOMMEND IT. When you are ready to start investing, I would say work with an investor friendly realtor because they may be able to understand your long term goals.
Good luck out there! If you have any questions too, please feel free to message me and I'd be happy to help you
0 Reply
Armaan Premjee
Investor · Miami · Member since 2018 · 13 posts · 0 votes
4y
Quote from @Patrick Megill:

Hey everyone I'm Pat and new to the forum. I am 25, married, and live in Florida. As the title says, I'm new to real estate. I just started reading "Rich Dad Poor Dad" and have been skimming through the forums here to try and get some pointers for a newbie. I think my biggest worry so far is how my family will take me expressing interest in this type of investment. How were you able to explain to those close to you that this was a risk worth taking? I don't want to get discouraged and miss out on a world of opportunity. My long term goals are to first buy a house as a primary residence then rent that and then rent out either a duplex, triplex, etc. and go from there. I am working on saving for a down payment on a house now and don't plan to buy for another 3-4 years which should get me to around 20% down. I also have access to a VA loan so even if I don't make 20% it won't be the end of the world. I look forward to chatting with you all and if you have any advice I am all ears!

Hi @Patrick Megill and welcome to the BP community. I'm 25 years old and live in Florida as well. I've been doing real estate investing for the past 4 years and it's completely changed my life. I've gone from being broke to becoming a millionaire with over $10k/month in passive income. And it wouldn't have been possibly without this awesome community that is so generous with their knowledge. I'm looking to give back and help newbies and would love to get on the phone with you to learn more about your pain points and see how I can be of help.

1 Reply
Ali Boone
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
4y
Quote from @Patrick Megill:

@Ali Boone Thanks for the help. I spoke to my wife about it and she seems to be on board so now I am just studying and running numbers on example properties while building up my savings!

Awesome! I realize now when you said your family, I wasn't thinking of a spouse, I was thinking more like parents, siblings, etc. It definitely does matter what your wife thinks! :) That's awesome she's on board now. Have fun! The exploration of example properties and such is a fun part of the journey.
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