New to investing with a full time job

Sacramento, California
Starting Out
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New to investing with a full time job

Ashley McWilliams
Member since 2022 路 8 posts 路 6 votes

Hello. My significant other and I live in Northern California (an hour north of Sacramento). We both have full time jobs, my job is in sales and requires a lot of my time while my significant other job allows him more free time. We want to begin investing in single family homes and/or duplexes as rental property. We are very new to real estate investing and any guidance and information would be greatly appreciated. 
Thank you. 

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Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
4y

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.

The DIY Landlord Book4.7248 Reviews
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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant 路 San Diego / Phoenix 路 Member since 2021 路 12k+ posts 路 15k+ votes
    4y

    Well, the first thing to do is learn as much as you can about the RE part of this as well as the maintenance part. Since you have little time to devote to this, you could consider investing OOS and let a PM handle all the craziness. My thinking is that your money would buy more outside of Cali, plus you don't have the stupid tenant favoring laws to deal with.

    Best of luck to you!

    1Reply
  • Eliott Elias
    Investor 路 Austin, TX 路 Member since 2021 路 9k+ posts 路 5k+ votes
    4y

    You鈥檙e going to need a source to find deals and a team ready once you find those deals. Maybe target light rehabs to get the ball rolling. Maybe find turnkey property you can rent out instantly. Real estate gives you the flexibility to work as hard or minimal as possible 

    1Reply
  • Jack Swank
    Contractor 路 California, CA 路 Member since 2020 路 32 posts 路 27 votes
    4y

    I own properties in vacaville and Sacramento California, and I would say that single family homes are hard to cash flow. Duplex is a great starter. If you do go for a single family home, then try to find a property that you can build an ADU to get more income.
    let us know more info and we will try to help. First steps are always the hardest.馃榿

    3Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent 路 Irvine, CA 路 Member since 2013 路 2k+ posts 路 1k+ votes
    4y
    Quote from @Ashley McWilliams:

    Hello. My significant other and I live in Northern California (an hour north of Sacramento). We both have full time jobs, my job is in sales and requires a lot of my time while my significant other job allows him more free time. We want to begin investing in single family homes and/or duplexes as rental property. We are very new to real estate investing and any guidance and information would be greatly appreciated. 
    Thank you. 

    Jump in and consistently take action on learning at whatever you can do! There are multiple places to do that in this 2022 world: REI meet ups, here on BP, books, podcasts, doing on the job training, and so much more! Jump in, be consistent and do not give up on REI because it will give you a ton of long lasting financial rewards! 
    The McKernan Group4.957 Reviews
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    1Reply
  • Joshua MessingerBusiness Member
    Property Manager 路 Poconos, PA 路 Member since 2020 路 443 posts 路 264 votes
    4y

    Hey @Ashley McWilliams! 

    Since you both are currently working a full-time job I would suggest focusing more on a  turn-key approach where little work will be necessary on your guy's end.

    A good strategy for doing this is buying out of state and in places where you will have a management company take the lead for you in finding the place you look to acquire, furnishing the place, and then getting pictures and uploading the listing for you so it's entirely hands-off. 

    If you guys are interested in something like this feel free to reach out and I'd love to help you guys get started! 

    All the best,

    Josh 

    [email protected]484-986-5012
    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber 路 Pittsburgh 路 Member since 2018 路 6k+ posts 路 5k+ votes
    4y

    @Ashley McWilliams

    to be direct...

    -Do you own or rent currently?

    -Do you have money for a down payment?

    1Reply
  • Aj Parikh
    Rental Property Investor 路 Centreville, VA 路 Member since 2019 路 1k+ posts 路 799 votes
    4y

    @Ashley McWilliams Welcome to Bigger Pockets!! If you just want to get started, I would recommend turnkey investing. So you just have to come up with the downpayment. Let me know if you want to connect and chat. 

    2Reply
  • Chris Walko
    Chicago, IL 路 Member since 2022 路 12 posts 路 6 votes
    4y

    Go slow and buy a good deal. You're going to have to do a lot of research of what a good deal means in your area, see sold listings see what people bough it and sold it at etc.. If you go the "no money" down route or hard money loaning most of the cost. Have a bunch of cash saved up just in case you run into problems. 

    1Reply
  • Ashley McWilliams
    OP
    Member since 2022 路 8 posts 路 6 votes
    4y
    Quote from @Nicholas L.:

    @Ashley McWilliams

    to be direct...

    -Do you own or rent currently?

    -Do you have money for a down payment?


    0Reply
  • Ashley McWilliams
    OP
    Member since 2022 路 8 posts 路 6 votes
    4y
    Quote from @Ashley McWilliams:
    Quote from @Nicholas L.:

    @Ashley McWilliams

    to be direct...

    -Do you own or rent currently?

    -Do you have money for a down payment?

    Nicholas, no and no. We have been spending time educating ourselves financially. Reaching out for advise on getting started. 

    0Reply
  • Ashley McWilliams
    OP
    Member since 2022 路 8 posts 路 6 votes
    4y
    Quote from @Nicholas L.:

    @Ashley McWilliams

    to be direct...

    -Do you own or rent currently?

    -Do you have money for a down payment?

    We own our personal residence 
    0Reply
  • Ashley McWilliams
    OP
    Member since 2022 路 8 posts 路 6 votes
    4y

    Pros and cons on investing outside of the state I live in? How do you asses a property that you are not able to see in person? Does it become hard to judge the integrity of the property? Do we find a lender, CPA, lawyer locally or in the state your investing in. What is the best way to pick a state to invest in. 

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber 路 Pittsburgh 路 Member since 2018 路 6k+ posts 路 5k+ votes
    4y

    @Ashley McWilliams I recommend finding a market you can drive to. This will allow you to attend REIA meetings in person; meet your Core 4 in person; easily visit as many properties as you like in person; etc. Of course you can invest in Ohio or Alabama if you wanted, but I just think it's better to be closer to your market as a beginner.

    And, I strongly recommend saving up funds for a down payment and reserves.  If you already own your primary, you may not be in a position to house hack, and investment properties generally require more money down.

    Hope this helps.

    2Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker 路 Cody, WY 路 Member since 2010 路 28k+ posts 路 41k+ votes
    4y

    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.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    5Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor 路 VA 路 Member since 2015 路 21k+ posts 路 19k+ votes
    4y

    @Ashley McWilliams

    Six years ago I started slowly building my portfolio. I spent evenings working on my side hustle vs watching tv. There of course where times you wanted to give up, or were taking on too much. There also came a point where in order to scale you needed to spend $, hire people as you max out. 500+ deals later we just started our own company, have 8 employees and looking back I am so glad I did so I could get out of the w2 rat race

    7e investments53 Reviews
    WebsiteView Page
    2Reply
  • Jon KellyPro Member
    Investor 路 Bethlehem, PA 路 Member since 2016 路 929 posts 路 951 votes
    4y

    @Ashley McWilliams you're in the same boat as 99% of the other real estate investors... Everyone is busy, but we just got started. 

    Find your market, connect with a local agent and start making offers! 

    1Reply
  • Seth Young
    Specialist 路 Southlake, TX 路 Member since 2021 路 213 posts 路 157 votes
    4y

    @Ashley McWilliams I would say to check out turnkey real estate companies. There are companies out there that offer a truly passive investment opportunity that allows you to own the property outright. You will also obtain the benefits of a resident paying off the mortgage on your property, acquire the profit from appreciation and tax write offs. If you don't have much time to allocate to RE investing, I would suggest working with a team that is established and has a trustworthy and reliable reputation. If you want to discuss, feel free to reach out. Best of luck with all your investing! 

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber 路 Pittsburgh 路 Member since 2018 路 6k+ posts 路 5k+ votes
    4y

    Turnkey makes no sense for OP...

    0Reply
  • Malorie Moore
    Real Estate Agent 路 Memphis, TN 路 Member since 2021 路 88 posts 路 50 votes
    4y

    Hi Ashley!

    My advice would be to do as much research as possible. I would suggest investing out of state to get more for your money and for it to be completely passive since you are so busy! Take a look at turnkey, alot of people may say it doesn't make sense, but if you get in with the right company and the right market, it can absolutely make sense! 

    Things to look for in a company: How long have they been in business, what are their internal processes, what markets are they in, how many investors do they currently serve, etc. Ask as many questions as possible!

    I would love to chat with you more with this!

    1Reply
  • Ashley McWilliams
    OP
    Member since 2022 路 8 posts 路 6 votes
    4y

    Thank you for all of the insight and guidance. We have our work cut out for us to get started. I am excited to know there is a good and supportive investing community out there for use to be able to use as a resource. 

    0Reply
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