Seeking Advice from Those Wiser than Myself

[Raf Pinero]

Looking to connect with someone who has been there, done that, and can somewhat relate with my situation. I'll keep it concise:

- I'm 22yrs old, working in Commercial Real Estate Private Equity as an acquisitions analyst in NYC

- Ultimate goal is to invest in real estate and build up a RE holding business/portfolio.

- I have a strong financial & real estate specific foundation of knowledge (double-majored in finance/commercial real estate in college)

- I have a handful of select target markets where I've spotted outsized growth potential and low capital requirements, given I do not have much in savings.

My question is: What should I be doing??? I feel so eager/ready to start, but I don't have the capital ready to go yet. Should I be looking for partners with more capital? If you were in my shoes, what actions would you take to ensure that you can start investing in RE as soon as possible? As of right now I'm just saving up $$$ but that feels unnecessary given the amount of ways to get deals done with low/no money down. Would love to connect and hear the stories of how people started out on their journey.

[Nathan Gesner]

Quote from @Raf Pinero:

Educate yourself and save money. Once you have enough of both, you'll know what to do.

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 Turner or 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 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.